For More information contact one of our Homeownership Representatives
Mortgage Finance Authority
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 clos-ing 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, educator or an active member of the armed forces.
What if I'm Not a First-Time Homebuyer?
Even if you’re not a first time homebuyer, you may still qualify for the HERO First Mortgage Program and also if necessary a HERO Second Mortgage.
What is the Maximum Amount I Can Borrow?
Your lender will help you determine the maximum amount of your first and, if necessary, a second mortgage, based on your need. For the second mortgage you may qualify for up to 8% of the sales price of the home.
How Do I Repay This Loan?
The HERO First Mortgage is a 30-year fixed rate mortgage available for both first time homebuyers and non-first time homebuyers at a below-market interest rate with a 1 point origination fee and 1 point discount fee (1+1). The HERO down payment assistance (DPA) 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. Also, there is no pre-payment penalty!
Does This Mean I'll Have to Make Two Separate Payments on my Home?
No. In fact, as an added convenience, you will pay both your first and second mortgage loan payments with a single monthly coupon.
Do I Need Good Credit 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 your mortgage lender for further information.
Does the Hero Program Require Private Mortgge Insurance (PMI)?
Yes. PMI is required on the HERO First Mortgage Program if you are not putting 20% down according to Conventional loan requirements. 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 participating lenders. Your lender will coordinate the approval of your mort-gage loan directly with MFA. You need only apply with a participating lender and request the MFA HERO program.
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.
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.
