Paul Chavez

Lt. Governor Denish Announces Immediate Housing Stimulus Plan

Santa Fe - Lt. Governor Diane D. Denish, chair of the New Mexico Mortgage Finance Authority (MFA), today announced a five part plan to stimulate New Mexico 's housing market. "The MFA board and I took stock of the state and federal resources and programs we currently have and refocused them to help New Mexicans now," said Lt. Governor Denish. "It's often the one-time down payment and closing costs that prevent families from buying homes even if they can afford monthly payments. Combined one-time cost assistance programs and tax write-offs for businesses that contribute to these programs will increase home buying opportunities for more low- and middle-income families. These programs will help banks lend, stimulate the New Mexico housing market, and get more working families into homes." MFA administers most of the programs described below.

1. The New Mexico Affordable Housing Tax Credit may be used to leverage donations designated for down payment assistance. The State of New Mexico makes available approximately $3.8 million in Affordable Housing Tax Credits, which would leverage approximately $7.6 million in charitable donations. Employers and other interested individuals may make donations to non-profit housing agencies that administer approved down payment assistance programs and receive fifty cents in state tax credits for every dollar they donate. Lt. Governor Denish and the MFA will launch a campaign to seek maximum business and non-profit housing agency participation this spring.
   
2. MFA's Mortgage Booster Program will make approximately $3.5 million available for down payment assistance for first-time home buyers earning between 100-115 percent of the area median income.
   
3. Teachers, public safety and health care workers, and active duty military meeting household income requirements of MFA's Home Equity & Required Occupation (HERO) Program may qualify for down payment assistance of up to 8 percent of a home's purchase price.
   
4. New Mexicans who wish to purchase a home outside the cities of Albuquerque and Las Cruces may be eligible for MFA's Payment$aver Program. Payment$aver provides down payment assistance grants for home buyers earning up to 80 percent of AMI.  
   
5. In targeted areas of the state, families earning up to 120 percent of AMI may qualify for Neighborhood Stabilization Program down payment assistance to purchase homes that have been foreclosed upon.   

New Mexico also stands to benefit from the federal First-time Home Buyer Tax Credit enacted under the American Recovery and Reinvestment Act of 2009. First-time home buyers can receive the lesser of $8,000 or 10 percent of the purchase price of a home in refundable federal tax credits; income-qualified buyers may also be eligible for one of MFA's below-market rate mortgage products and one of MFA's down payment assistance programs. Homes must be purchased before December 1, 2009 for tax credit in 2010. To receive the full tax credit, individual home buyers must earn less than $75,000, and couples must earn less than $150,000. Buyers with higher incomes will receive reduced credits. To qualify for a low-interest mortgage and down payment assistance, buyers must have incomes at or below 115 percent of the area median income, or $64,285 for a family of three in the Albuquerque area.

The estimated range of funds available for down payment assistance is between $5.8 and $20 million, depending on how many home buyers claim the federal Home Buyer Tax Credit and how many donations are received for down payment assistance in exchange for the New Mexico Affordable Housing Tax Credit.