Homeownership may be elusive for many but the New Mexico Mortgage Finance Authority is trying to make that dream a reality.
The MFA FirstHome program is offering below market interest rate to state residents entering the housing market, according to a June 2 KRQE report.
"MFA makes lower-interest loans than conventional lenders because we can raise money using tax-exempt mortgage revenue bonds," MFA Chief Financial Officer Lizzy Ratnaraj said in the KRQE report. "The lower mortgage rate allows MFA to fulfill our mission of providing loans to first-time low-to-moderate-income homebuyers. MFA is constantly exploring ways to alleviate some of our target borrowers' inflationary and borrowing pressures."
The FirstHome program offers mortgages at rates as low as 5.875%, currently lower than prevailing market rates, although those rates are subject to change, KRQE reported.
MFA offers mortgages specifically to low-to-moderate-income first-time homebuying families who have not owned and lived in a home as their primary residence within the past three years, according to KRQE. The initiative aims to support and provide assistance to this specific group of potential homeowners.
The need is great. A statewide housing study commissioned by MFA last year found rising prices make it difficult for renters to achieve homeownership, according to a June 13 news release. New Mexico Home values have been tracking nationwide trends, in which the prices for buying a new home are increasing sharply while income growth has failed to keep up. Increase home values, which began in 2020, has benefitted existing homebuyers but creating barriers to those entering the market.
"Higher interest rates and increased sale prices have made it challenging for first-time homebuyers to enter the homeownership market, MFA's lower interest rates and attractive down payment assistance programs can make all the difference in these current market conditions," MFA Executive Director and CEO Isidoro Hernandez said in the news release.