HERO (Home Equity & Required Occupation)

What does HERO provide?

MFA's HERO program is a special first and second mortgage loan that can be used jointly to include down payment and closing cost assistance to persons in certain occupations.

Who can benefit from HERO?

HERO is designed to serve households in which at least one member is a safety worker, health care worker, police officer, fire fighter, educator or an active member of the armed forces.

What if borrowers are not a first-time homebuyer?

Even if they’re not a first time homebuyer, the borrower may still qualify for the HERO first mortgage program. They may also qualify for a HERO second mortgage.

What is the maximum amount that can be borrowed?

A lender will decide the maximum amount of the first and second mortgage, based on need. A second mortgage may qualify for up to 8 percent of the sale price of the home.

How is the loan repaid?

The HERO first mortgage is a 30-year, fixed-rate mortgage at a below-market interest rate with a 1 point origination fee and 1 point discount fee (1+1). The HERO down payment assistance loan is repaid over 30 years at a fixed interest rate that is the same as the interest rate on the HERO First Mortgage, with the exception of the 1+1. There is no pre-payment penalty.

Does this mean borrowers have to make two separate payments on a home?

No. Both first and second mortgage loan payments are made with a single monthly coupon.

Is good credit necessary to qualify?

The HERO mortgage loan is a conventional Fannie Mae “MyCommunity” loan. Conventional loan programs typically require fairly good credit to qualify, but the HERO Program has greater flexibility relating to credit issues, assets and income than other conventional loan programs. Consult the mortgage lender for further information.

Does the Hero Program require Private Mortgage Insurance (PMI)?

Yes, if the borrower is not putting 20 percent down, which conventional loans require. But the HERO program allows the borrower to pay for the PMI with a single-payment premium option that eliminates the monthly PMI payment, making the HERO program one of the most affordable conventional mortgage loans available.

Where do I Apply?

HERO is available through a statewide network of MFA-approved lenders. The lender will coordinate your mortgage loan directly with MFA.

What are the Household Income Limits for HERO?

The HERO first and second mortgage program’s current gross annual household income may not exceed the following limits listed below.

ANY SIZE HOUSEHOLD

Is There a Sales Price Limit for HERO?

Residences financed can include single-family detached homes, town homes, condominiums and homes in planned unit developments. Total home sales price may not exceed the limit listed below, unless they are in a targeted area where slightly higher acquisition cost limits may apply.

For More information contact one of our homeownership representatives
Main: (505) 843-6881
Fax: (505) 243-3289

What does HERO provide?

MFA's HERO Program is a special first and second mortgage loan that can be used jointly to include down payment and closing cost assistance to persons in certain occupations.

Who can benefit from HERO?

HERO is designed to serve households in which at least one member is a safety worker, health care worker, police officer, fire fighter, educator or an active member of the armed forces.

What if borrowers are not a first-time homebuyer?

Even if they’re not a first time homebuyer, the borrower may still qualify for the HERO First Mortgage Program. They may also qualify for a HERO second mortgage.

What is the maximum amount that can be borrowed?

A lender will decide the maximum amount of the first and second mortgage, based on need. A second mortgage may qualify for up to 8 percent of the sale price of the home.

How is the loan repaid?

The HERO First Mortgage is a 30-year, fixed-rate mortgage at a below-market interest rate with a 1 point origination fee and 1 point discount fee (1+1). The HERO down payment assistance loan is repaid over 30 years at a fixed interest rate that is the same as the interest rate on the HERO First Mortgage, with the exception of the 1+1. There is no pre-payment penalty.

Does this mean borrowers have to make two separate payments on a home?

No. Both first and second mortgage loan payments are made with a single monthly coupon.

Is good credit necessary to qualify?

The HERO Mortgage Loan is a conventional Fannie Mae “MyCommunity” loan. Conventional loan programs typically require fairly good credit to qualify, but the HERO Program has greater flexibility relating to credit issues, assets and income than other conventional loan programs. Consult the mortgage lender for further information.

Does the Hero Program require Private Mortgage Insurance (PMI)?

Yes, if the borrower is not putting 20 percent down, which conventional loans require. But, the HERO Program allows the borrower to pay for the PMI with a single-payment premium option that eliminates the monthly PMI payment, making the HERO Program one of the most affordable conventional mortgage loans available.

Where do I Apply?

HERO is available through a statewide network of MFA-approved lenders. The lender will coordinate your mortgage loan directly with MFA.

What are the Household Income Limits for HERO?

The HERO First and Second Mortgage Program’s current gross annual household income may not exceed the following limits listed below.