NM Preservation Loan Fund

NM Preservation Loan Fund is sponsored by New Mexico Mortgage Finance Authority (Housing New Mexico). This opportunity supports mission-aligned projects and measurable outcomes.

HOME | Homeownership Development Loans | New Mexico MFA Find Housing and Assistance Housing Opportunities for People with HIV/AIDS Make My HomeLoanServ Payment Setup for Autodraft Payments Income, Purchase Price, Acquisition Cost Limits Income and Purchase Price Limits Find an MFA-Participating Lender Housing New Mexico's HOME single family development program is designed to provide below-market-rate loans to developers for land purchase, infrastructure development and construction of single-family homes for purchase by low-income households.

HOME funds used for single family development primarily serve as “gap financing” and will be awarded only where a financing disparity exists between the total amount of all permanent sources of funds (mortgages, subsidies readily available from other sources, and buyers’ down payments) and the total development cost of the project (after fees have been adjusted, if necessary).

Various other federal requirements must be met in order to use HOME funding. These include, among others, completion of HUD's environmental review process and use of Davis Bacon wage rates in some cases. Nonprofit entities, for-profit entities, public housing agencies and tribally designated housing entities.

Cost of construction, rehabilitation, acquisition and related soft costs as allowed under applicable regulations during the construction period. HOME funds may either be paid back to Housing New Mexico after construction completion upon the sale of the home or may then be converted to permanent loan funds to be used by the homebuyer.

Affordability Requirements Homeownership: Households earning 80% or less of area median income (AMI) must occupy HOME-funded units.

The HOME affordability period varies depending on the amount of funds provided per unit: Under $15,000 in HOME funds per unit – 5-year affordability period $15,000 to $40,000 in HOME funds per unit – 10-year affordability period Over $40,000 in HOME funds per unit – 15-year affordability period All Eligible Single Family Development Projects Up to three-year construction loan term Lesser of $1,000,000 per project or 80% of project’s total development cost Generally, HOME loans are offered at 0%-3% interest rate.

Rates are determined based on staff underwriting of the project, among other considerations. HOME mortgage may be in first or junior lien position on the property. In general, Housing New Mexico will obtain the highest lien position possible for a HOME loan.

Guaranty(ies) will be required from financially responsible entities or individuals acceptable to Housing New Mexico if funds are to be used during construction. HOME loans may be subordinated to first lien position loans but are still considered "hard debt" (not subject to available cash flow for repayment.)

For certain HUD guaranteed loans such as 221(d)4, HUD requires that subordinate lenders sign its cash flow-only subordination agreement (form HUD-92420M). Housing New Mexico will consider signing it on a case-by-case basis at its sole discretion only if certain criteria are met.

Complete applications must be received no later than 60 days prior to a regularly scheduled meeting of the Housing New Mexico Board of Directors in order to be considered at that meeting. Meetings of the Housing New Mexico Board of Directors are generally held every third Wednesday of the month.

With the exception of applications submitted for consideration with applications for 9% Low Income Housing Tax Credits (LIHTC), all applications submitted by the deadline for a particular meeting of the Housing New Mexico Board of Directors will be treated as one funding round and evaluated concurrently.

Forms and Reference Materials Homeownership Development Application Homeownership Development Checklist Homeownership Development Application Homeownership Development Schedules Mandatory Design Standards for Single-family Housing Architect's Certification of Compliance with MFA's SF Design Standards If you have questions about this program, please contact us .

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