Down Payment Path

Down Payment Assistance Programs in New Mexico

New Mexico offers several programs to help homebuyers cover down payment and closing costs, making homeownership more accessible across the Land of Enchantment. These initiatives are designed for a wide range of buyers, including first-time and repeat purchasers.

MFA FIRSTDown Program

The FIRSTDown Program, provided by the New Mexico Mortgage Finance Authority (MFA), offers financial assistance to cover upfront costs for eligible buyers.

  • Provides up to $8,000 as a no-interest, deferred-payment loan.
  • Repayment is deferred until the home is sold, refinanced, or the first mortgage is paid off.
  • Pairs exclusively with MFA’s FIRSTHome mortgage program.
  • Available to buyers who meet income and purchase price limits.

HomeNow Down Payment Assistance

The HomeNow Program offers forgivable assistance to help with down payments and closing costs.

  • Provides up to $7,000 as a forgivable second mortgage.
  • Forgiveness occurs after a set period of primary residency.
  • Designed to complement MFA-approved mortgage products.

USDA Rural Development Loans

For buyers in rural New Mexico, the USDA Rural Development Loan provides affordable financing with no down payment required.

  • Open to low- and moderate-income buyers in USDA-eligible rural areas.
  • Offers competitive interest rates and flexible credit requirements.
  • Can be combined with state programs to cover closing costs.

Mortgage Credit Certificate (MCC)

The Mortgage Credit Certificate (MCC) program offers valuable tax benefits to reduce the overall cost of homeownership.

  • Allows buyers to claim a federal tax credit for a portion of their annual mortgage interest.
  • Can be paired with MFA mortgage products and down payment assistance programs.
  • Income and purchase price limits apply but accommodate many buyers.

Local Assistance Programs

Several cities and counties in New Mexico provide additional support for homebuyers through down payment assistance initiatives.

  • Programs in areas like Albuquerque, Santa Fe, and Las Cruces often provide grants or low-interest loans for upfront costs.
  • Some local initiatives target specific groups, such as educators, first responders, or buyers purchasing in revitalization zones.
  • Eligibility and assistance levels vary by location and program specifics.

New Mexico’s down payment assistance programs are tailored to reduce financial barriers, making homeownership more attainable for a diverse range of buyers. Whether you’re purchasing your first home or upgrading, these resources can help you achieve your goal of owning a home in the Land of Enchantment.