Qualified buyers can receive a permanent 1 percentage-point interest rate reduction through the state’s HomeForward mortgage program

Organ Mountain News report

ALBUQUERQUE - Housing New Mexico has launched a pilot program offering qualified homebuyers a permanent 1 percentage-point reduction in the interest rate on a 30-year fixed mortgage for newly constructed homes.

The NewHome Rate Advantage program is available to buyers purchasing an eligible new home through Housing New Mexico’s HomeForward program and using an approved participating lender.

Housing New Mexico said the size of the monthly savings will depend on the mortgage amount. On a $300,000 loan, for example, the agency estimates the lower interest rate could save a homeowner about $188 per month.

The pilot is funded through the New Mexico Housing Trust Fund and has limited funding expected to help between 350 and 400 households.

“This pilot program will help many New Mexicans purchase a home,” Housing New Mexico Executive Director and CEO Isidoro Hernandez said. “This is an innovative program to address the affordable housing challenges in our state.”

Eligible homes can be site-built, detached or attached and can be located anywhere in New Mexico, including on federally designated tribal land. A home’s certificate of occupancy cannot have been issued more than 12 months before the purchase date.

The program is limited to borrowers who will use the property as their primary residence. Investment properties, rental properties and second homes are not eligible.

Buyers also must meet the income and purchase-price limits of Housing New Mexico’s HomeForward program.

Housing New Mexico began accepting loan reservation requests from participating lenders on behalf of buyers July 27.

Interested homebuyers can review program requirements, HomeForward limits and a list of participating lenders at housingnm.org.