Last Updated on August 23, 2023 by Hannah Stevens
Mortgage Assistance for Homebuyers in New Mexico
FIRSThome
New Mexico Mortgage Finance Authority (MFA)’s FIRSThome program assists first-time homebuyers who have low- or moderate incomes. Then, these first mortgage programs can be used to finance any property, and can be combined with one of MFA’s second mortgage loan programs, FIRSTDown (or HOMENow) for down payment assistance.
Eligibility Requirements
MFA’s FIRSThome program only applies to first-time homebuyers. Applicants who have lived in a home for more than three years will not be eligible. However, borrowers must contribute $500 out of their own funds. Then, this contribution cannot come in the form of a gift, grant or down payment assistance. MFA also requires all borrowers to have a minimum credit score (620) and receive pre-purchase counseling via eHome American or an approved counseling agency.
Property Requirements
A home purchased with funds from FIRSThome must be the borrower’s primary residence. Then, buyers must move in to the property within 60 days. However, the purchase price of the property must not exceed these limits.
- Santa Fe County: $331,205
- Los Alamos County: $369,501
- All other areas and counties of the State: $283,349
Income Limits
Albuquerque MSA (Bernalillo/Sandoval/Torrance/Valencia)
- 1 or 2-person household: $66,624
- 3 or more-person household: $76,618
Santa Fe MSA
- 1 or 2-person household: $78,596
- 3 or more-person household: $90,386
Farmington MSA (San Juan)
- 1 or 2-person household: $67,800
- 3 or more-person household: $77,970
Los Alamos County
- 1 or 2-person household: $135,500
- 3 or more-person household: $155,825
Otero County
- 1 or 2-person household: $68,204
- 3 or more-person household: $78,435
Lincoln, Grant and De Baca Counties
- 1 or 2-person household: $63,600
- 3 or more-person household: $74,200
Curry and Catron Counties
- 1 or 2-person household: $61,440
- 3 or more-person household: $71,680
Eddy County
- 1 or 2-person household: $72,700
- 3 or more-person household: $83,605
Lea County
- 1 or 2-person household: $66,584
- 3 or more-person household: $76,572
Union County
- 1 or 2-person household: $64,800
- 3 or more-person household: $75,600
Chaves and Harding Counties
- 1 or 2-person household: $62,760
- 3 or more-person household: $73,220
Las Cruces MSA (Dona Ana)
- 1 or 2-person household: $60,960
- 3 or more-person household: $71,120
All Other Areas and Counties of the State
- 1 or 2-person household: $60,400
- 3 or more-person household: $69,460
FirstHome and FirstDown Programs
New Mexico Mortgage Finance Authority provides a variety of mortgage programs for eligible applicants to help with closing costs and down payments. They also offer competitive interest-rate mortgage loans. The FirstHome and FirstDown programs work hand in hand to help residents buy their first home.
Available Assistance
FirstHome, MFA’s first mortgage program for first-time homebuyers in New Mexico, is open to those with low and moderate incomes. FirstHome can also be used with FirstDown, MFA’s second mortgage loan program that provides down payment assistance.
Eligibility Requirements
These programs are available to first-time homebuyers. Therefore, they are buyers who haven’t owned or occupied a primary residence for the past three years. The buyer must also move in to the property closed using the FirstHome program as their primary residence within 60 days. However, the FirstHome program can only fund single-family residences. Moreover, you cannot use properties to generate income. There are also business restrictions applied.
There is a requirement of a credit score of at least 620. However, homebuyers who have no credit history may be eligible for alternative credit qualifications in certain cases. All homebuyers must be able to access pre-purchase counseling via MFA’s online program, eHome America, or an HUD approved counseling agency. Borrowers must also contribute $500 from their own money. However, the contribution cannot be from any type of gift, grant, or down payment assistance. Furthermore, FirstHome can only be accessed through a network of MFA-approved lenders.
This is similar to the Down Payment programme that is one of the first-time homebuyer assistance programs in New Jersey.
HomeNow Program
The New Mexico Mortgage Finance Authority provides a variety of mortgage programs for eligible applicants to cover closing costs and down payment. They also offer competitive interest-rate mortgage loans. HomeNow is one of these programs.
Available Assistance
HomeNow is a second mortgage loan program for first-time homebuyers with lower incomes. It must be used with MFA’s FirstHome program. This loan is entitled to be forgiven if the borrower resides in the purchased home for a period of 10 years. It is also forgiven if the borrower do not sell, refinance, rent out, transfer title to the property, or vacate the property.
Eligibility Requirements
The program is also open to previous homeowners who haven’t owned and occupied a primary residence within the last three years. Borrowers must contribute $500 from their own money. However, the contributions cannot be from any form of gifts, grants, or down payment assistance.
The HomeNow program’s purchase price and income limits for homebuyers differ depending on the county and the number of household members. MFA also requires a credit score of at least 620. However, alternative credit qualifications may be acceptable for buyers without a credit score. Additionally, all homebuyers need to receive pre-purchase homebuyer counseling via MFA’s online program, eHome America, or an HUD-approved counseling agency approved by MFA.
Property Guidelines
Only single-family residences located in New Mexico may be eligible for the HomeNow program. The eligible properties are: detached site-built, condominium or townhome, or a house in a planned-unit development. Moreover, the MFA will finance manufactured homes which are at least double the width, attached to a permanent foundation, and assessed as real estate, and meet FHA guidelines. The buyer must also move in to the property closed using the HomeNow program as their primary residence within 60 days. However, you cannot use the property to generate income. In addition, business use restrictions apply.
NextHome Program
The New Mexico Mortgage Finance Authority provides a variety of mortgage programs for eligible applicants to cover closing costs and down payment. They also offer competitive interest-rate mortgage loans. NextHome is one of these programs.
Available Assistance
NextHome is an amalgamation of a first mortgage loan and a down payment assistance second loan. It is available to both first-time and repeat homebuyers with low and moderate incomes. This program is for financing single-family homes. The borrower must also occupy the property within 60 days of closing.
The NextHome down payment assistance second mortgage is 3% of your first mortgage loan amount. This loan can be for financing closing costs and down payments, including prepaid items. It may also be for an additional down payment on the first mortgage loan.
Eligibility Requirements
There is a requirement of a credit score of at least 620. Homebuyers also need to contribute $500 from their own money. However, the contribution cannot come from any form of gift, grant, or down payment assistance.
- Household income limit: $95,000
- Maximum Purchase Price Limit: $346,600
Are you interested in the First-Time Homebuyer Assistance Programs in New York?
