New Mexico First-Time Home Buyer Programs and Assistance

Housing New Mexico (New Mexico Mortgage Finance Authority, MFA) currently lists 5 programs for New Mexico buyers. Figures below were read from the agency's own pages on September 11, 2026.

New Mexico first-time buyer programs open now

Housing New Mexico (New Mexico Mortgage Finance Authority, MFA) is the state's housing finance agency (homebuyer programs page). It runs 5 down payment or closing-cost assistance programs. Has not owned and occupied a home as a primary residence in the past three years (varies slightly by program; see individual programs).

Program	Type	Amount	First-time only	Min. credit	Income limit
FirstDown source	Second mortgage	Down payment/closing cost assistance; amount not itemized separately from FirstHome on the agency's program page	Yes	620	$89,000 to $170,900 (1-2 person household) / $102,350 to $196,535 (3+ person household) depending on county, effective 7/27/2026
FirstDown Plus source	Second mortgage	Additional down payment assistance on top of FirstDown; amount not published on the program page	No	620	See program page
HomeNow source	Forgivable second loan	Down payment and closing cost assistance; second mortgage	Yes	620	$40,850 to $74,800 (1-person) up to $77,000 to $141,000 (8-person) depending on county, effective 7/27/2026
HomeForward and HomeForward DPA source	Second mortgage	Down payment assistance second mortgage; amount not published on the program page	No	620	$133,500 to $256,350 (1-4 person household) / $144,300 to $276,900 (5+ person household) depending on county, effective 7/27/2026
NewHome Rate Advantage source	Program	Permanent 1% interest rate buydown (not a cash down payment grant)	No	620	See program page

FirstDown. Terms: Fixed-rate second mortgage; must be combined with FirstHome first mortgage Purchase price limit: $566,354 (most counties) to $724,361 (Los Alamos County), effective 7/27/2026 Must pair with: FirstHome first mortgage Homebuyer education: required Program page
FirstDown Plus. Terms: Third mortgage; must be used with FirstHome (first) and FirstDown (second) Must pair with: FirstHome and FirstDown Homebuyer education: required Program page
HomeNow. Terms: 0% interest; may be forgiven after 10 years if conditions are met Purchase price limit: $228,000 to $441,000 (existing home) / $300,000 to $441,000 (new home) depending on county, effective 12/1/2025 Must pair with: HomeNow first mortgage Homebuyer education: required Program page
HomeForward and HomeForward DPA. Terms: May be used as a stand-alone first mortgage or with the HomeForward DPA second mortgage Purchase price limit: $629,283 (most counties) to $804,846 (Los Alamos County), effective 7/27/2026 Homebuyer education: required Program page
NewHome Rate Advantage. Terms: Permanent mortgage interest rate reduction for newly constructed homes purchased under HomeForward Must pair with: HomeForward Homebuyer education: required Program page

How little you can put down

You do not need 20% down. Conventional loans go as low as 3% (through programs like Fannie Mae HomeReady and Freddie Mac Home Possible), FHA loans start at 3.5%, and VA and USDA loans can require nothing down. On New Mexico's median-priced home (about $378,300), 3% down is roughly $11,349. Putting 20% down lets you skip private mortgage insurance, but most first-time buyers put down far less.

Who counts as a first-time buyer

For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years, so many repeat buyers qualify again. New Mexico programs often add income and purchase-price limits, which is another reason to confirm the details with Housing New Mexico.

Stack a buyer rebate on top in New Mexico

Down-payment assistance and a buyer commission rebate are two different things, and in New Mexico you can use both. Assistance from Housing New Mexico helps with your down payment and closing costs; a buyer rebate returns about 2% of the price to you at closing (roughly $7,566 on a median-priced home), which can cover much of your closing bill.

See New Mexico buyer rebates → See New Mexico closing costs →

Frequently asked questions

What first-time home buyer programs are available in New Mexico?

Housing New Mexico (New Mexico Mortgage Finance Authority, MFA) lists 5 programs: FirstDown, FirstDown Plus, HomeNow, HomeForward and HomeForward DPA, NewHome Rate Advantage.

Do you have to be a first-time buyer to qualify in New Mexico?

Not for every program. 3 of 5 New Mexico programs are open to repeat buyers. Has not owned and occupied a home as a primary residence in the past three years (varies slightly by program; see individual programs).

How much down payment do you need in New Mexico?

As little as 3% on a conventional loan, 3.5% on an FHA loan, and 0% on VA or USDA loans. On New Mexico's median-priced home (about $378,300), 3% is roughly $11,349. You do not need 20% down, though 20% lets you avoid mortgage insurance.

Who counts as a first-time home buyer?

For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years. Some New Mexico programs also have income and purchase-price limits, so check with Housing New Mexico.

Can I combine assistance with a buyer rebate in New Mexico?

Yes. A buyer commission rebate is separate from down-payment assistance and is legal in New Mexico. Assistance helps with your down payment and closing costs up front; a rebate returns about 2% of the price at closing, which you can put toward closing costs. You can use both.

Official sources

New Mexico program details last verified against Housing New Mexico on September 11, 2026.

Read the full guide to the cash you need to buy →

This is general information, not financial advice. Program details, limits, and loan terms change; confirm the current rules with Housing New Mexico and your lender before you rely on them.

See first-time buyer programs in all states