New Mexico Down Payment Assistance

New Mexico Down Payment Assistance Programs

A guide to current down payment assistance options in New Mexico, including the state Housing Finance Agency, well-known city and county programs, and live DPA mortgage pricing for New Mexico homebuyers.

New Mexico Housing Finance Agency

New Mexico Mortgage Finance Authority (Housing New Mexico) (MFA)

housingnm.org505-843-6880

MFA administers the primary DPA programs for New Mexico. Program details below are current as of October 17, 2026 - confirm current terms directly with MFA before applying.

Statewide DPA Programs in New Mexico

FirstHome

Housing New Mexico (MFA)

Other

Fixed-rate first mortgage for first-time homebuyers with low to moderate incomes; may be paired with FirstDown or HomeNow for down payment and closing cost assistance.

Paired with: Conventional, FHA, VA, USDA

  • First-time homebuyer: Required
  • Primary residence only
  • Minimum FICO: 620
  • Income: Income and purchase price limits vary by county and household size; see the Housing New Mexico schedule.
  • Homebuyer education required

First-time homebuyer defined as not owning and occupying a principal residence in the past three years. Conventional options are HFA Advantage and HFA Preferred; HUD Section 184 also eligible. Targeted areas may waive the first-time buyer requirement.

Source: housingnm.org

FirstDown

Housing New Mexico (MFA)

Repayable second

Fixed-rate second mortgage from $1,000 up to 4% of the sales price for down payment and closing costs, with multiple repayment term options and a monthly payment.

Paired with: Conventional, FHA, VA, USDA

  • First-time homebuyer: Required
  • Primary residence only
  • Minimum FICO: 620
  • Income: Same income and purchase price limits as FirstHome.
  • Homebuyer education required

Must be paired with the FirstHome first mortgage. Same credit, property and counseling requirements as FirstHome.

Source: housingnm.org

FirstDown Plus

Housing New Mexico (MFA)

Repayable second

Fixed $10,000 third mortgage for down payment. 0% interest, 15-year amortizing loan with monthly principal payments of $55.56.

Paired with: Conventional, FHA, VA, USDA

  • First-time homebuyer: Required
  • Primary residence only
  • Minimum FICO: 620
  • Income: Same income and purchase price limits as FirstHome.
  • Homebuyer education required

Must be used with FirstHome plus either FirstDown or HomeNow. Combined Housing New Mexico DPA loans cannot exceed $35,000. Balance due on sale, refinance or transfer. Funds are limited and first-come, first-served.

Source: housingnm.org

HomeNow

Housing New Mexico (MFA)

Forgivable second

Fixed $7,000 second mortgage for down payment and closing costs. No monthly payment; forgiven after 10 full years of owner occupancy.

Paired with: Conventional, FHA, VA, USDA

  • First-time homebuyer: Required
  • Primary residence only
  • Minimum FICO: 620
  • Income: At or below 80% of area median income; limits vary by county and household size.
  • Homebuyer education required

Must be paired with the FirstHome first mortgage. Used in place of FirstDown as the second mortgage; may be combined with FirstDown Plus.

Source: housingnm.org

HomeForward DPA

Housing New Mexico (MFA)

Repayable second

Fixed-rate 15-year second mortgage up to 3% of the sales price toward down payment, paired with the HomeForward first mortgage. No first-time homebuyer requirement.

Paired with: Conventional, FHA, VA, USDA

  • First-time homebuyer: Not required
  • Primary residence only
  • Minimum FICO: 620
  • Income: HomeForward income and purchase price limits apply; see the Housing New Mexico schedule.
  • Homebuyer education required

Funds may not be used toward closing costs unless the first mortgage is USDA, VA or HUD Section 184. Homebuyer counseling is required for first-time buyers.

Source: housingnm.org

New Mexico Notes for Homebuyers

  • MFA income and purchase price limits are updated periodically; always check the current schedule at housingnm.org.
  • Pre-purchase homebuyer counseling is required for first-time buyers using MFA programs.

2026 Loan Limits in New Mexico

Conforming (Conventional)

$832,750 baseline

FHA

$541,287

Standard FHA limit, applies to most New Mexico counties.

Live DPA Pricing for New Mexico

Pricing below is sourced live from hundreds of wholesale lenders for a New Mexico scenario. Edit the inputs to match your situation.

FHA Down Payment Assistance

Up to 5% assistance; repayable second at first rate + 2% over 10 years

Min FICO 580
▸Program details
  • ✓Minimum credit score: 580
  • ✓Non-traditional credit also possible
  • ✓Assistance up to 2.5%, 3.5%, or 5% of the lesser of purchase price or appraised value
  • ✓Assistance can be used for down payment, closing costs, or both
  • ✓Second lien: 10-year fixed, repayable
  • ✓Second lien rate is 2% higher than the first mortgage rate
  • ✓No first-time homebuyer requirement
  • ✓No income cap
  • ✓Purchase of primary residence only
  • ✓Eligible properties: 1-unit residences, PUD, 2-4 units, FHA-approved condos, manufactured (single/double-wide)
  • ✓DTI per AUS and FHA manual underwriting guidelines
  • ✓First lien: FHA 30-year fixed

Assistance amount

1st lien: $386,000 at 96.5% LTV (FHA)
2nd lien: $14,000 (10-yr fixed, 1st rate + 2%)
The assistance is a second loan repaid monthly over 10 years. Any remaining balance is paid off if the home is sold or refinanced. Pricing estimate only - final rates, fees, and eligibility may vary.
Program details on this page are compiled from official New Mexico Housing Finance Agency and local government sources and were last verified on October 17, 2026. Program availability, funding, eligibility thresholds, and assistance amounts change frequently. Always confirm current terms directly with the administering agency before applying. This page is informational only and is not an offer to lend.

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DPA Programs in Other States

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