The NMWelcomeHome Team Blog

New Mexico Mortgage Finance Authority also known as MFA is a home buyer assistance program.  Without getting into to much detail the program assist low to moderate income buyers with housing.  There are income limits but is much more flexible than traditional type of financing.  It is possible to get a loan to cover your down payment and closing cost. Although flexible MFA made the below change. 

Sole and Separate-poor credit for spouse. A sole and separate is to disclaim or relinquish his or her right, title and interest to the property. This establishes that it is the desire of both spouses that title to the property be granted to one spouse as that spouse’s sole and separate property. For example: Lee Buyer, a married man, as his sole and separate property.

In the past, MFA has allowed married borrowers to take title as Sole and Separate property due to one party having poor credit. With the 2010A bond issue, a minimum credit score guideline of 620 was adopted for all borrowers on an MFA loan. Therefore, borrowers may not take title as Sole and Separate property because one party has poor  credit. Sole and Separate will only be allowed under the following circumstances:

• One party is not able to enter into a contract (i.e. not of legal age)
• One party does not have a Social Security number.

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