Federal Tax Credit

First time homebuyers can receive $8,000 or 10 percent of a home's sale price in refundable federal tax credits on homes purchased on or after January 1, 2009 and on or before April 30, 2010. In cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.

For sales occurring after November 6, 2009, the Act establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns.

The income limits for sales occurring on or after January 1, 2009 and on or before November 6, 2009, are $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns.

Homebuyers who owe less than $8,000 on federal taxes will receive the balance as a cash refund on their 2010 taxes. The tax credit does not have to be repaid. Additional information regarding the federal first-time homebuyer tax credit can be found at www.federalhousingtaxcredit.com

Turn Your Tax Credit Into a Downpayment

Because of the need for down payment and closing cost assistance to purchase a home, MFA has created the Tax Credit Loan Program. The Tax Credit Loan Program provides a first-time homebuyer with a loan of 8 percent of the sales price or $6,500, whichever is less, to cover the down payment and closing costs associated with purchasing a home. After loan closing, the homebuyer may file for the federal first-time homebuyer tax credit and use the tax refund to pay off the Tax Credit Loan.

As long as the homebuyer pays off the Tax Credit Loan prior to June 30, 2010, the homebuyer will not have to pay any interest on the loan. If the borrower chooses not to pay off the Tax Credit Loan by June 30, 2010, the loan will convert to a 30-year, fixed rate second mortgage that requires a modest monthly payment.

The Tax Credit Loan Program is paired with a safe, 30-year fixed rate MFA first mortgage loan, which provides long-term, sustainable homeownership.

The Tax Credit Loan Program is available statewide to first-time homebuyers, defined as anyone who has not owned a home for the past three years. The program is available through a statewide network of participating lenders. Click here for a list of participaticing lenders. 

Are there Restriction to the Program?

Your annual household income, before taxes, may not exceed limits listed below, based on family size and property location. In some cases, slightly higher annual household income limits might apply

The Tax Credit Loan Program can be used to help purchase a variety of homes, including single-family attached and detached homes, town homes, condominiums, homes in planned unit developments, and permanently attached manufactured homes. The sales price of the home may not exceed the Acquisition Cost Limits listed below, unless the home is in a Targeted Area. See the Mortgage$aver Program fact sheet for targeted area household income limits and targeted area acquisition cost limits.

Income Limits

If you are interested in purchasing a new or existing home in New Mexico
and would like to apply for any of MFA’s programs, please contact one
of the MFA qualified lending institutions.

Combine the Tax Credit with MFA Programs

Homebuyers who have incomes at or below 115 percent of the area media income are also eligible for MFA's below market mortgages and down payment assistance programs.

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.

Downpayment assistance programs

Mortgage Booster

HERO

Payment$aver

For more information, contact one of our Homeownership Department representatives. 

Mortgage Finance Authority
Main: (505) 843-6881
Fax: (505) 243-3289