Guides / Down Payment Assistance / New Mexico

Down Payment Assistance in New Mexico

New Mexico's state-level down payment assistance is administered entirely by the New Mexico Mortgage Finance Authority (MFA), operating publicly as "Housing New Mexico" — there is no separate city/regional program needed since MFA covers the whole state. Its core first-time-buyer offering pairs the FirstHome first mortgage with either the FirstDown second mortgage or the deeper-subsidy HomeNow program (a fixed $7,000 forgivable-after-10-years second mortgage for households at/below 80% AMI), and buyers can stack the FirstDown Plus $10,000 zero-interest amortizing loan on top for additional down payment funds. All figures and eligibility terms below were verified directly against official Housing New Mexico program fact sheets (revised 10/22/25 and 01/22/25) and the agency's income/purchase-price-limits page (effective 7/1/2025), which remain the current, in-force terms. Note: I could not verify the exact current maximum dollar/percentage figure for the base FirstDown loan itself from the pages retrieved (older third-party sources cite a $8,000 cap, but this could not be confirmed on an official 2025/2026-dated MFA document) — this should be double-checked directly at housingnm.org or with an MFA-approved lender before publishing as a hard figure.

Programs

FirstHome + FirstDown
New Mexico Mortgage Finance Authority (MFA), operating as "Housing New Mexico"
Amount: FirstDown is a down payment assistance second mortgage combined with the FirstHome first mortgage; exact current maximum FirstDown loan amount and rate should be confirmed on the official FirstDown program sheet at housingnm.org, as MFA's public program pages did not list the specific dollar cap in the pages retrieved. FirstHome itself is a first mortgage (FHA, VA, USDA, HFA Advantage, or HFA Preferred Conventional) with no fixed dollar assistance amount of its own.
Type: First mortgage (FirstHome) + down payment/closing cost assistance second mortgage (FirstDown)
Must be a first-time homebuyer (has not owned and occupied a primary residence in the past 3 years); minimum credit score of 620 (alternative credit qualification possible for those with no score); must occupy the home as primary residence within 60 days of closing; must complete pre-purchase homebuyer counseling via eHome America or a HUD-approved agency; income and purchase price limits vary by county and household size (e.g., Albuquerque MSA ~$98,254 for 1-2 person households, ~$112,992 for 3+ person households, effective 7/1/2025; higher in Los Alamos and Santa Fe Counties); property must be a single-family residence in New Mexico, owner-occupied only.
HomeNow
New Mexico Mortgage Finance Authority (MFA) / Housing New Mexico
Amount: Fixed $7,000 second mortgage, 0% interest, non-amortizing, no monthly payment required; loan balance is forgiven after the borrower occupies the home for a full 10 years without selling, refinancing, transferring title, or renting the property (per official program sheet revised 01/22/25).
Type: Down payment and closing cost assistance second mortgage (forgivable after 10 years); must be paired with the FirstHome first mortgage
First-time homebuyer (or has not owned/occupied a primary residence in the past 3 years); household income at or below 80% of Area Median Income (AMI), varies by county and household size; minimum credit score of 620 (alternative credit qualification possible); must complete pre-purchase homebuyer counseling; must occupy as primary residence within 60 days of closing; single-family residence in New Mexico only.
FirstDown Plus
New Mexico Mortgage Finance Authority (MFA) / Housing New Mexico
Amount: Fixed $10,000 third mortgage, 0% interest, 15-year fully amortizing term, monthly payment of $55.56 (principal only, no interest); funds must be used exclusively for down payment (not closing costs); a $500 origination fee is allowed.
Type: Additional down payment assistance loan (non-forgivable, repaid monthly) — must be layered behind FirstHome (1st mortgage) and either FirstDown or HomeNow (2nd mortgage)
Same first-time homebuyer, credit score (620 minimum), homebuyer counseling, income and purchase price limits as FirstHome/FirstDown; if paired with HomeNow instead of FirstDown, income must be at or below 80% AMI; must always be in third-lien position behind FirstHome and FirstDown/HomeNow.
HomeForward
New Mexico Mortgage Finance Authority (MFA) / Housing New Mexico
Amount: Combination first mortgage plus a down payment assistance second mortgage with simplified qualification and reduced documentation; specific dollar assistance figures were not published in the pages reviewed — confirm current amount directly with MFA or a participating lender. Purchase price limits reported at $604,703 (most counties) up to $798,581 (Los Alamos County), effective 7/1/2025; income limits reported at $121,800 (most counties) up to $268,500 (Los Alamos County).
Type: First mortgage + down payment assistance second mortgage, with relaxed underwriting
Unlike the other MFA programs, HomeForward has NO first-time-homebuyer requirement, making it usable by repeat buyers as well; income and purchase price limits are higher than FirstHome/FirstDown, varying by county; still requires use of an MFA-approved participating lender.

Facts on this page reflect research current as of 2026-07-05. Programs, rates, and laws change — confirm current figures with the relevant state agency before relying on them.

Related Resources
Property Taxes in New MexicoTransfer Tax & Closing Costs in New MexicoBuyer-Agent Agreements in New MexicoSeller Disclosure Laws in New MexicoFind Agents in New MexicoDown Payment Calculator