Mortgage & Equity

New Mexico Educators Federal Credit Union is an affiliate of the New Mexico Mortgage Finance Authority (MFA), which finances housing for low- to moderate-income and underserved families. Whenever state funds are available from this agency, we can assist qualifying members in applying for special MFA programs that offer assistance with the down payment and closing costs.

The Housing and Economic Recovery Act (“the Act”) of 2008 (H.R. 3221), which was signed into law on July 30, 2008, established a refundable first-time homebuyer tax credit of up to $7,500. You can  make an appointment with Mortgage Services at New Mexico Educators Federal Credit Union to determine if this policy can help you move into your first home.

• The Act establishes a refundable tax credit (“Tax Credit”) for first-time homebuyers (of a principal residence) of an amount equal to the lesser of 10% of the purchase price of the residence or $7,500, which ever is less.  
• The Tax Credit is available for homes purchased between April 9, 2008 and July 1, 2009.
• The Tax Credit is phased out for a single taxpayer with a modified Adjusted Gross Income of between $75,000 and $95,000 ($150,000 and $175,000 for joint filers).
• The term, “First Time Homebuyer” is defined as an individual (or married couple) with no present ownership interest in a principal residence during the 3- year period ending on the date of the purchase of the new residence (similar to the MFA First-Time Homebuyer rule).
• The Tax Credit will not apply if the home is purchased from a related person (i.e. relative).
• The Act requires the homebuyer to repay (“Recapture”) the Tax Credit in the 15 years following the purchase of the home, at a rate of 6.66% of the Tax Credit amount each year. The Recapture applies for the entire 15-year period. 
• The Tax Credit cannot be claimed by the homeowner if the purchase of the home is funded with Tax-Exempt Mortgage Revenue Bonds (i.e. Mortgage$aver Program).
• In addition, the Tax Credit cannot be claimed if the borrower is a non-resident alien or if the borrower sells the property within the taxable year.