New Mexico First-Time Home Buyer Programs 2026
Housing New Mexico runs eight homebuyer programs, and they are built to stack — a first mortgage, a second (FirstDown or HomeNow) and a $10,000 third (FirstDown Plus), with the second and third capped at $35,000 combined. This guide covers what each program pays, the income and purchase price limits by county, and the three requirements that apply to all of them.
FirstHome, FirstDown and FirstDown Plus
This is the main first-time buyer path in New Mexico. FirstHome is the first mortgage; the other two layer assistance on top of it.
| Program | Assistance | Terms |
|---|---|---|
| FirstHome | First mortgage | For first-time buyers with low to moderate income. Can stand alone or carry assistance |
| FirstDown | Up to 4% of the sales price | Fixed-rate second mortgage for down payment and closing costs; multiple repayment term options. Must be combined with FirstHome |
| FirstDown Plus | $10,000 fixed | 0.00% interest, 15-year amortizing, $55.56 a month. Outstanding balance due on sale, refinance or transfer |
FirstDown is a percentage, not a flat amount — 4% of a $300,000 purchase is $12,000, while 4% of a $180,000 purchase is $7,200.
FirstDown works with FHA, VA, USDA, HUD Section 184, HFA Advantage and HFA Preferred Conventional first mortgages. FirstDown Plus requires FirstHome plus either FirstDown or HomeNow.
HomeNow — $7,000 Forgivable
HomeNow is the program for buyers at the lower end of the income range, and it is the only Housing New Mexico assistance that can be forgiven outright.
| Feature | HomeNow |
|---|---|
| Assistance | $7,000 fixed |
| Monthly payment | None |
| Forgiveness | May be forgiven after 10 full years |
| Conditions | You must occupy the home for the full ten years without selling, refinancing, transferring title, renting it out or vacating |
| Income limit | At or below 80% of area median income, varying by county and household size |
| Credit score | 620 minimum; alternative credit qualification may be considered |
| Requires | Must be used with FirstHome |
Read the forgiveness conditions carefully. Refinancing counts as a triggering event, so a rate-and-term refinance in year seven would end the forgiveness clock. Eligible properties include detached homes, condominiums, townhomes, planned-unit developments and qualified manufactured homes on permanent foundations.
HomeForward and the Other Programs
Three more products cover buyers who fall outside the first-time path.
| Program | What it offers | Who it is for |
|---|---|---|
| HomeForward | First mortgage | Repeat buyers, and anyone who does not qualify for FirstHome |
| HomeForward DPA | Optional second mortgage | Down payment assistance alongside HomeForward |
| NewHome Rate Advantage | Interest rate reduction | New construction purchases, HomeForward only |
| Manufactured Home Financing | Down payment assistance | Works with FHA, VA, USDA-RD and specific conventional programs |
HomeForward carries higher income and purchase price limits than FirstHome, which makes it the route for buyers earning too much for the first-time programs. Housing New Mexico publishes a fact sheet for each product.
Income and Purchase Price Limits
Limits vary by county and by program, and they rise in targeted areas. Los Alamos carries the highest figures in the state by a wide margin.
| Program | Income Limit | Purchase Price Limit |
|---|---|---|
| FirstHome / FirstDown | 1–2 person $89,000 to $170,900 · 3+ person $102,350 to $196,535 | Los Alamos $724,361 · Santa Fe $595,612 · all other areas $566,354 |
| HomeForward | 1–4 person $133,500 to $256,350 · 5+ person $144,300 to $276,900 | Los Alamos $804,846 · Santa Fe $661,792 · most other counties $629,283 |
| HomeNow | $40,850 to $141,000 by county and household size | Existing homes $228,000 to $441,000 · new homes $300,000 to $441,000 |
The low end of the FirstHome income range — $89,000 for a one- or two-person household — applies in Lincoln, Rio Arriba and all other areas. The $170,900 top of the range is Los Alamos alone.
Limits shown are effective 7/27/2026 and rise for purchases in targeted areas. Confirm your county before relying on any figure at Housing New Mexico’s limits page.
Housing New Mexico Eligibility Checklist
Three requirements apply to every Housing New Mexico program, and they catch buyers out more often than the income limits do.
- Credit score — A minimum of 620 across all programs. HomeNow may consider alternative credit qualification for buyers without a score.
- Homebuyer counseling — Pre-purchase counseling is required on every program, not just the assistance ones. Start it early; it is a common cause of closing delays.
- The $35,000 ceiling — FirstDown or HomeNow plus FirstDown Plus cannot exceed $35,000 combined.
- First-time status — Required for FirstHome, FirstDown, FirstDown Plus and HomeNow. FirstDown Plus also accepts buyers who have not owned a primary residence in the past three years. HomeForward has no first-time requirement.
- Income and price limits — Both vary by county and program, and both rise in targeted areas.
- Participating lender — You apply through a Housing New Mexico participating lender, not to the agency directly.
Step by Step
- Work out which track you are on — First-time buyer, or not owned in three years, points to FirstHome. Everyone else starts at HomeForward.
- Check your county’s limits — Both income and purchase price vary by county, and Los Alamos and Santa Fe are substantially higher than everywhere else.
- Check whether the address is in a targeted area — Targeted areas carry higher limits and can relax the first-time requirement.
- Confirm your credit — 620 is the floor across every program. If you are below it, that is the first thing to fix.
- Start homebuyer counseling — Required on all programs. Booking it early avoids a delay at the end.
- Find a participating lender — Housing New Mexico works through a lender network. Ask which of the eight programs the lender actually originates.
- Stack within the cap — Work out the combination with your lender, remembering FirstDown or HomeNow plus FirstDown Plus stops at $35,000.
