MFA is announcing the restructure of the Next Home Program to include a NextDown forgivable second mortgage loan. The NextDown loan will replace the Next Home Grant.
For all loan applications dated November 12, 2018 and forward, the reservation for the Next Home must reflect the NextDown DPA Program. PLEASE NOTE THIS IS A CHANGE FROM PREVIOUS RELEASES OF NEW PROGRAMS. Release details will be explained at our lender training webinar on October 30, 2018, see below for information regarding registration; more trainings will be scheduled.
The NextDown loan amount is exactly three percent (3.0%) of the final Next Home (first mortgage) loan amount. NextDown is a second mortgage loan, which is a 15-year, zero percent (0.00%), non-amortizing, second mortgage requiring no monthly payments and does not carry a prepayment penalty. Payment of the entire outstanding loan balance is due upon sale, transfer or refinance. The loan balance is forgiven 20% each year beginning with the eleventh anniversary of the note date until fully forgiven at the 15-year anniversary.
NextDown is only available in conjunction with MFA’s Next Home (first mortgage) loan. Lenders are responsible for following all applicable regulatory guidelines with respect to required disclosures. A $100 origination fee and applicable recording fees may be charged. Please Note: The Next Home Grant and NextDown reservations will be triggered by the application date. Loan applications dated prior to November 12, 2018 will be reserved as the Next Home Grant and loan applications dated as of November 12, 2018 and beyond will be the NextDown loan.
This training is designed for staff whose duties involve originating, processing and closing MFA loans.
NextDown DPA Program Webinar Training Date:
- Tuesday, October 30, 2018 10:30 –11:00 AM MDT
Register via the MFA lender training link http://www.housingnm.org/lender-training.
In order for MFA to e-mail registered individuals the training materials and to track attendance, please register no later than 5 pm MDT on the business day prior to the training.
MFA will be creating Job Aids for the lenders and consumer marketing materials. Thank you for participating in MFA’s programs. Should you have any questions, please contact your MFA Homeownership Representative directly or the office at 505-843-6880.