MFA HERO Program | New Mexico Housing

MFA HERO Program is administered by the New Mexico Mortgage Finance Authority (MFA) to expand access to safe,

affordable housing. Qualified borrowers receive reduced first-mortgage interest rate plus dpa option along

with homebuyer education, credit counseling, and post‑purchase resources. Funds may be layered with federal

products, such as FHA, VA, or USDA loans, and other state initiatives to maximize purchasing power. The

program works statewide through a network of MFA‑approved lenders and requires a minimum investment from the

borrower to ensure long‑term sustainability. Borrowers must occupy the property within 60 days of closing and

meet annual recertification requirements when applicable. MFA periodically reviews income and purchase‑price

limits to reflect HUD guidelines and local market conditions, guaranteeing that assistance targets those most

in need.

• Household income must fall within MFA’s annually published limits based on family size and county.

• Purchase price (or after‑rehab value) cannot exceed program cap for the property location.

• Borrower must complete a HUD‑approved homeownership education course prior to closing.

• Minimum middle credit score of 620 (640 for conventional products) and DTI ≤ 45 %.

• Reduced first-mortgage interest rate plus DPA option applied toward down payment, closing costs, or principal reduction.

• Fixed‑rate financing keeps monthly payments predictable.

• Option to layer with Mortgage Credit Certificate for up to $2,000 annual federal tax credit.

• Free post‑purchase counseling reduces long‑term delinquency risk.

1. Consult MFA’s income and purchase‑price charts to confirm baseline eligibility.

2. Select an MFA‑approved lender and complete a loan application with credit review.

3. Enroll in a HUD‑certified homebuyer education class and obtain completion certificate.

4. Lender reserves funds through MFA’s online portal and submits full loan package for approval.

5. Attend closing; MFA assistance is disbursed to cover authorized costs. Move in within 60 days.