Mortgage & Equity

Applying for a MFA Mortgage Loan?

Here's How to Make the Process Easier.

IMPORTANT: You may not qualify for a MFA loan if you have owned a home in the past three years - even if you were only a co-signer on a mortgage loan for someone else or added to a warranty deed. Below are some charts to inform you of price and income limits.

Maximum Home Sales Prices for MFA Loans:

Income Limits per Person/Household for an MFA Loan:

All income is taken into consideration, including bonuses, overtime pay, etc. If you are expecting a raise or have income close to the limits above, that will be taken into consideration and could possibly cause your application to be rejected.

Getting Ready for Your Loan Application

• You must take a special class for first-time homebuyers. There is reading material; then you take a test to receive a certificate proving that you completed the training.
• Be sure you have all appropriate documentation ready the day you come in to apply. This would include all income and asset documentation necessary to qualify for the loan, as well as evidence that anything of a legal nature (such as credit disputes, bankruptcy discharges, divorce decrees, etc.) has been resolved.
• Be prepared to explain various items on your Credit Union or bank statements, such as large deposits. You must provide photo copies documenting where the money came from.
• Avoid transferring large amounts of money from savings to checking during the review process. This will raise a red flag and slow down the approval time.
• If you do not have a documented work history for the past two to three years but were attending school or college, you may still qualify. You will need to provide copies of transcripts and/or your diploma.
• Provide your housing rental history for the last three years -- contact information, phone numbers, and the dates you rented each property. Satisfactory payment history is required.
• Provide your employment history for the last three years -- each employer's name, address and phone number plus the dates of each job.
• If you are currently working only on a part-time basis, you may still qualify. Income will be averaged over two years. This can lower your income potential and thus may lower your qualifying loan amount.
• Provide your three most recent years income tax records -- W-2 forms and complete federal tax returns.
• All retirement statements, bank statements, and pay check stubs must be dated within the 30 days preceding your MFA application review.

Review of Your Application May Take Up to Four Weeks

Unlike a conventional mortgage application at New Mexico Educators Federal Credit Union, your MFA application must be reviewed by two sets of outside underwriters -- one for State Bond compliance and another for standard underwriting. Your Credit Union works diligently with this external process, which can take up to four weeks.

Additional information about MFA loans is available at this Web site: www.housingnm.org.