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State of New Mexico Housing Programs

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 1949 and for over 60 years has provided:.

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State of New Mexico Housing Programs

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  1. Stateof New Mexico Housing Programs

  2. 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.

  3. 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.

  4. 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.

  5. 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

  6. 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

  7. Eligible Refi Borrowers in Pilot States

  8. 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.

  9. 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

  10. Housing Investments 2009-2011 By the Numbers 456,000 rural families assisted 21,000 rural communities

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