First-Time Home Buyer New Mexico 2026
Your complete guide to buying your first home in New Mexico. 2+ down payment assistance programs, FHA loans from 5.92%, and step-by-step guidance.
What First-Time Buyer Programs Are Available in New Mexico?
New Mexico offers 2 major first-time home buyer assistance programs. These include MFA FirstHome, NM HomeNow DPA. Programs provide up to $8,000 in down payment assistance through grants, forgivable loans, and below-market interest rates.
How Much Do I Need to Buy in New Mexico?
You can buy a home in New Mexico with as little as $0 down. VA and USDA loans require zero down payment. FHA loans need just 3.5% ($$9,625), and conventional loans start at 3% ($$8,250) on the median price of $275,000.
| Loan Type | Down Payment | $ Amount | Monthly P&I | Min Credit |
|---|---|---|---|---|
| VA Loan | 0% | $0 | $1,626 | 620 |
| USDA Loan | 0% | $0 | $1,670 | 640 |
| Conventional 3% | 3% | $8,250 | $1,620 | 620 |
| FHA Loan | 3.5% | $9,625 | $1,577 | 580 |
| Conventional 20% | 20% | $55,000 | $1,336 | 620 |
New Mexico Down Payment Assistance Programs
MFA FirstHome
Below-market rate mortgage with DPA
NM HomeNow DPA
Silent second mortgage for DPA
5 Steps to Buy Your First Home in New Mexico
To buy your first home in New Mexico, start by checking your credit score, getting pre-approved, and researching DPA programs. The entire process typically takes 30-60 days from pre-approval to closing. Here's your step-by-step roadmap.
Check Your Credit & Finances
Review your credit score (aim for 620+), calculate your debt-to-income ratio, and save for closing costs. In New Mexico, you may need as little as $9,625 for an FHA down payment.
Get Pre-Approved
Compare rates from at least 3 lenders. Current New Mexico rates: 6.12% (30-year), 5.92% (FHA). Pre-approval shows sellers you're serious and locks your rate.
Apply for New Mexico DPA Programs
New Mexico has 2+ DPA programs. The MFA FirstHome offers up to $8,000. Apply early—funding can be limited.
House Hunt & Make an Offer
Popular cities in New Mexico: Albuquerque, Las Cruces, Santa Fe, Rio Rancho, Roswell. Median price is $275,000 (+4.8% YoY). Work with a local real estate agent who knows the market.
Close on Your New Home
Closing costs in New Mexico typically run 2-5% of the purchase price ($8,250-$13,750). Some DPA programs also cover closing costs.
Start Your New Mexico Home Buying Journey
Get pre-approved in minutes and see what you qualify for.
Get Pre-Approved NowNew Mexico First-Time Buyer FAQ
What first-time home buyer programs are available in New Mexico?
New Mexico offers 2 major programs: MFA FirstHome, NM HomeNow DPA. These provide grants, forgivable loans, and below-market rates for down payment and closing cost assistance.
How much down payment do I need in New Mexico?
As little as $0 (VA/USDA), $$8,250 (3% conventional), or $$9,625 (3.5% FHA) on the median price of $275,000.
What income do I need to buy in New Mexico?
Using the 28% rule, you'd need approximately $$67,604/year. The median household income in New Mexico is $53,992.
What is the FHA loan limit in New Mexico?
The 2026 FHA loan limit in New Mexico is $472,030. The conforming loan limit is $766,550.