Housing Element Section 4 Housing Policy Program DRAFT 082621
State of New Mexico Housing Programs. Section 502 Direct Loan Program - at a Glance The Section 502...
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Transcript of State of New Mexico Housing Programs. Section 502 Direct Loan Program - at a Glance The Section 502...
![Page 1: State of New Mexico Housing Programs. Section 502 Direct Loan Program - at a Glance The Section 502 Program was first authorized in the Housing Act of.](https://reader035.fdocuments.us/reader035/viewer/2022062515/56649c735503460f94925b0b/html5/thumbnails/1.jpg)
State of New Mexico
Housing Programs
![Page 2: State of New Mexico Housing Programs. Section 502 Direct Loan Program - at a Glance The Section 502 Program was first authorized in the Housing Act of.](https://reader035.fdocuments.us/reader035/viewer/2022062515/56649c735503460f94925b0b/html5/thumbnails/2.jpg)
Section 502 Direct Loan Program - at a Glance
• The Section 502 Program was first authorized in the Housing Act of 1949 and for over 60 years has provided:
• Low- and very low-income people the opportunity to own adequate, modest, decent, safe and sanitary homes in rural areas;
• Critical mortgage credit to rural residents where there has been a serious lack of available credit, or when available, at rates and terms low and very-low income rural residents could afford.
![Page 3: State of New Mexico Housing Programs. Section 502 Direct Loan Program - at a Glance The Section 502 Program was first authorized in the Housing Act of.](https://reader035.fdocuments.us/reader035/viewer/2022062515/56649c735503460f94925b0b/html5/thumbnails/3.jpg)
Section 502 Direct Loan Program - at a Glance
• Rural Development provides direct, as-well-as guaranteed loans, in rural areas.
• Rural areas include open country and places with a population of 10,000 or less and, under certain conditions, towns and cities between 10,000 and 20,000 population;
• Low-income is defined as between 50 and 80 percent of area median income (AMI); Very low-income is below 50 percent AMI.
![Page 4: State of New Mexico Housing Programs. Section 502 Direct Loan Program - at a Glance The Section 502 Program was first authorized in the Housing Act of.](https://reader035.fdocuments.us/reader035/viewer/2022062515/56649c735503460f94925b0b/html5/thumbnails/4.jpg)
Section 502 Direct Loan Program - at a Glance
Loans may be used to:• Purchase existing housing;• Purchase, relocate and/or repair existing
housing;• Purchase a building site and construct a
dwelling or;• Purchase new housing, including
manufactured housing;• Refinance debts when necessary.Note: At least 40 percent of funds must be
used to assist families with incomes less than 50 percent of AMI.
![Page 5: State of New Mexico Housing Programs. Section 502 Direct Loan Program - at a Glance The Section 502 Program was first authorized in the Housing Act of.](https://reader035.fdocuments.us/reader035/viewer/2022062515/56649c735503460f94925b0b/html5/thumbnails/5.jpg)
Guaranteed financing:
• No maximum purchase price
• No monthly mortgage insurance
• 30 year fixed interest rates
• Generous income limits
• Flexible credit guidelines
• NOT limited to first time homebuyers
![Page 6: State of New Mexico Housing Programs. Section 502 Direct Loan Program - at a Glance The Section 502 Program was first authorized in the Housing Act of.](https://reader035.fdocuments.us/reader035/viewer/2022062515/56649c735503460f94925b0b/html5/thumbnails/6.jpg)
Refinance Pilot
• RD 502 or Guarantee loans refinanced only
• 1.5% Upfront Fee• .30% Annual Fee• Paid as agreed 12 months prior• No new credit report• No new appraisal
![Page 7: State of New Mexico Housing Programs. Section 502 Direct Loan Program - at a Glance The Section 502 Program was first authorized in the Housing Act of.](https://reader035.fdocuments.us/reader035/viewer/2022062515/56649c735503460f94925b0b/html5/thumbnails/7.jpg)
Eligible Refi Borrowers in Pilot States
State SFH Guaranteed SFH Direct
AZ 6,471 2,345CA 8,199 5,760NM 1,286 1,599NV 1,116 361OR 6,042 1,884
Sub-total 23,114 11,949
Total 35,063
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Multi Family Housing Program: Direct Loan Program
• Provides financing to support the development of rental units in rural areas.
• Housing affordable to very low-, low-, and moderate-income households.
• Used to build, acquire and rehabilitate, or improve dwellings.
• Term is 30 years with a 50-year amortization.
![Page 9: State of New Mexico Housing Programs. Section 502 Direct Loan Program - at a Glance The Section 502 Program was first authorized in the Housing Act of.](https://reader035.fdocuments.us/reader035/viewer/2022062515/56649c735503460f94925b0b/html5/thumbnails/9.jpg)
Multi Family Guaranteed Loan Program
• Guaranteed loan program for development of multi-family housing facilities in rural areas.
• Guarantees are provided for the construction, acquisition, or rehabilitation of rural multi-family housing.
• 90% Guarantee
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Housing Investments 2009-2011
By the Numbers
456,000 rural families assisted
21,000 rural communities