ALBUQUERQUE, N.M. – Housing New Mexico has launched a new program to address the shortage of affordable entry-level housing available to low- and moderate-income homebuyers in the state. The Zero Interest Homebuilder Program (ZIHP) is a loan product that offers interest-free construction financing through the New Mexico Housing Trust Fund.
These loans are available to nonprofit organizations, for-profit organizations, governmental housing agencies, regional housing authorities, governmental entities, governmental instrumentalities, tribal governments, tribal housing agencies, builders, single-family developers, corporations, limited liability companies, partnerships, joint ventures, syndicates and other eligible associations or entities.
As home price increases outpace wage growth, the ability to achieve homeownership becomes more difficult, resulting in a huge need for affordable housing.
“With this new program, our intention is to promote the development and sale of entry-level homes priced appropriately for their respective market,” said Housing New Mexico Executive Director/CEO Isidoro Hernandez. “We are optimistic that eligible for-profit and nonprofit developers and builders will take advantage of this zero-percent interest rate construction loan, and ultimately, provide more homeownership opportunities for New Mexicans.”
ZIHP development and construction loans may be used to assist in financing a wide range of activities to increase affordable homeownership opportunities, including costs of on-site infrastructure necessary to support the development of affordable single-family lots and/or the construction of affordable homes.
Complete applications must be received no later than 60 days prior to a regularly scheduled Housing New Mexico Board of Directors meeting to be considered at that meeting. Meetings are typically held the third Wednesday of the month.
To learn more about eligible loan applicants, loan terms, application procedures, eligible home types, eligible homebuyers, sales price limitations and other details, visit the Housing New Mexico website.
For further questions about ZIHP, email Housing New Mexico Program Manager Joshua Howe at jhowe@housingnm.org. To learn about all of Housing New Mexico’s funding opportunities for developers, visit housingnm.org/developers.
Housing New Mexico, otherwise known as New Mexico Mortgage Finance Authority (MFA), was created in 1975 by the New Mexico State Legislature to provide quality affordable housing opportunities for all New Mexico residents. As the state’s housing authority, New Mexico Mortgage Finance Authority/Housing New Mexico uses housing bonds, tax credits and other federal, state and private resources to fund more than 40 housing programs. In addition to funding the construction and rehabilitation of affordable housing and rental properties, Housing New Mexico’s programs include down payment assistance, homelessness prevention and emergency shelter, weatherization services, rental assistance and housing for people with special needs which have provided over 500,000 families with affordable housing and services since its inception.
To learn more about Housing New Mexico, visit housingnm.org.
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