First-Time Home Buyer Programs in New Mexico

New Mexico Mortgage Finance Authority (MFA) Programs:

FirstHome Program:

Eligibility: Targets first-time homebuyers (no homeownership in the past three years) or buyers in targeted areas.
Offerings: Provides a 30-year fixed-rate mortgage (FHA, VA, USDA, or conventional) with below-market rates; can be paired with down payment assistance.
Requirements:

• Income must not exceed county-specific limits (e.g., $99,440 for a 1-2 person household in Bernalillo County as of 2025).
• Minimum credit score of 620 (varies by loan type).
• Debt-to-income ratio capped at 45% (50% with compensating factors).
• Homebuyer education course required.
• Purchase price limit of $349,525 (non-targeted areas) or $427,198 (targeted areas).

FirstDown Program:

Benefits: Offers a second mortgage up to 4% of purchase price to cover down payment and closing costs; paired with FirstHome.
Eligibility: Must use an MFA first mortgage; same income and purchase price limits apply.

FirstDown Plus Program:

Description: Provides a fixed $15,000, zero‐interest, fully amortizing third mortgage over 10–15 years (currently 15‑year amortization) for additional down payment.
Requirements: Must be used in conjunction with FirstHome and FirstDown; forgiven after 10 years of occupying the home. Assistance is capped at a combined total of $35,000 with other MFA programs [oai_citation:0‡housingnm.org](https://housingnm.org/lenders-realtors/tools-resources/firstdown-plus-faqs?utm_source=chatgpt.com).

HomeNow Program:

Benefits: Offers up to $7,000 as a zero‑interest second mortgage for down payment and closing costs; forgiven after 10 years if primary residence retained.
Eligibility: For lower‑income first-time buyers using FirstHome; credit score ≥ 620 required .

Local Programs:

Albuquerque

Albuquerque Down Payment Assistance: Offers up to $12,000 as a deferred loan (0% interest, due upon sale or refinance) for first-time buyers; income must be at or below 80% AMI (e.g., $59,300 for a family of four).

Santa Fe

Santa Fe Homebuyer Assistance: Provides up to $20,000 as a forgivable loan (forgiven after 10 years) for down payment and closing costs; income capped at 80% AMI; targets workforce housing.

Las Cruces

Las Cruces First-Time Homebuyer Program: Offers up to $10,000 as a 0% interest deferred loan (repayable upon sale) for down payment and closing costs; income must be below 80% AMI.

Additional Information:

• Mortgage Credit Certificate (MCC): Provides a federal tax credit of up to 30% of annual mortgage interest (max $2,000 yearly) for first-time buyers; fee applies; combinable with MFA loans.
• FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).
• USDA Loans: Zero-down payment for rural New Mexico areas; income limits apply.
• VA Loans: Zero-down payment for eligible veterans or active military.