Important

information

on buying

your first

home.

Contact

your MFA

partner

First -Time HomebuyerProgramsA Homeownership Program of MFA

344 4th Street SW, Albuquerque, New Mexico 87102tel. 505.843.6880 fax 505.243.3289 toll free 800.444.6880

www.housingnm.org

Your most recent W-2 tax statement

Your two most recent pay stubs

Proof of any other forms of income

A list of your recurring monthly debts, including the following information: • Name and address of the creditor • Outstanding balance of the debt • The monthly payment amount

A list of the places you have lived in the past three years

A list of the places you have been employed for the past two years

A list of your assets, including bank accounts, retirement accounts, automobiles, etc.

If you are self-employed, copies of your IRS tax return for the past three years

Contact Your MFA Partner

Use the following checklist to prepare for your first meeting with an MFA participating mortgage lender.

I’d like to buy a home but haven’t been able to save enough money for a down payment.MFA has many options to assist you with the required down payment, depending on your individual needs. An MFA participating mortgage lender can suggest the program that would best suit you. Most of our programs require you to be a first-time homebuyer, which means you haven’t owned and occupied your own home within the past three years.

Buying a home seems very complicated. Where do I begin?The first step is to meet with an MFA participating mortgage lender to discuss the various loan programs for which you might qualify. The mortgage lender will take a loan application and obtain a copy of your credit report. You will also be asked to provide details regarding your personal finances, including information about your current residence, current and past employment, bank accounts and other assets, source of income and information regarding your debts. If the mortgage lender determines that you meet the criteria for purchasing a home, the lender will tell you the maximum mortgage amount and home purchase price you can afford.

A list of MFA-approved mortgage lenders can be found on the MFA website www.housingnm.org or by calling 1-800-444-6880.

Do I need to have “perfect” credit to purchase a home?Poor credit may prevent you from qualifying for a mortgage loan, but you do not have to have perfect credit to qualify. It is a good idea to obtain a free copy of your credit report from each of the three major credit reporting agencies prior to applying for your loan with a lender. You can obtain your credit report at the website listed below or you may call each of the three agencies directly at the phone numbers listed below.

If you find an error on your credit report, you can dispute the information with each credit reporting agency. Even if you’re unable to qualify right now due to credit issues, you can always work on improving your credit and consider buying a home in the future.

Go to housingnm.org/housing-counseling to find a list of MFA’s non-profit counseling partners that can help you work through credit issues.

How can I qualify to purchase a home if I don’t use credit?MFA-approved lenders are often able to use “non-traditional” credit to determine if you can qualify for a mortgage loan to purchase a home. Examples of non-traditional credit may include your rent payments, telephone payments, auto insurance payments, utility payments or even a consistent pattern of savings over time. As long as you can demonstrate that you manage your financial obligations in a responsible manner, you do not need to have “traditional” credit to purchase a home.

Are there income restrictions on MFA loan programs?To determine if you qualify for an MFA loan program, your household income, family size and location of the home you plan to purchase are considered. Typically, the income guidelines are generous. Visit the MFA website for specific income criteria or talk with an MFA participating mortgage lender.

Are there restrictions on the kind of home I can purchase?You may purchase a single-family detached home, town home, condominium, a home in a planned unit development or a permanently attached manufactured home. MFA mortgage loan programs have limits on the purchase price, or acquisition cost, of a home that are based on its location. Visit the MFA website for specific guidelines or speak with an MFA participating mortgage lender.

Does MFA have programs for non first-time homebuyers?Yes. One option is to purchase a home in a specially designated U.S. Census tract called targeted areas. If you buy in these economically distressed areas, MFA will allow a higher income and purchase price limit. You will also be offered a competitive mortgage interest rate. Another option is the HERO program, which offers a 3 percent down payment assistance grant in combination with your first mortgage. HERO is designed to serve households in which at least one member is a public safety worker, healthcare worker, educational worker or an active or reserve member of the armed forces.

To view a map of targeted areas and for more information regarding the HERO, please visit our website www.housingnm.org.

www.annualcreditreport.com Equifax: 800-685-1111 Experian: 888-397-3742 TransUnion: 800-888-4213

Get a free copy of your credit report