Home prices in New Mexico did something unusual at the beginning of this year: They dropped. Compared with one year earlier, median sales prices ticked down by about half a percent, according to Redfin. That may not sound like much, but when prices almost everywhere else are going up, it’s a welcome signal to first-time homebuyers in the state.
Still, with a median sales price of $344,400, saving enough for the upfront costs of homeownership can be a challenge. Assistance is available — especially for first-time buyers — through Housing New Mexico.
New Mexico housing market statistics
Median home price (as of Jan. 2025): $344,400 (Redfin)
Median down payment (as of Dec. 2024): $55,644 (ATTOM)
Most affordable counties: De Baca, Hidalgo, Quay, Union (ATTOM)
New Mexico first-time homebuyer programs
FirstHome
FirstHome is Housing New Mexico’s loan for first-time buyers with low- to moderate-incomes. It’s available for those seeking FHA, USDA, VA, HFA Advantage and HFA Preferred Conventional loans, and it can be combined with down payment assistance from Housing New Mexico or other sources.
Requirements
Pros and cons
HomeForward
HomeForward is a mortgage available to first-time and repeat buyers. If your income makes you ineligible for FirstHome, this program may work for you, as it has higher limits. Otherwise, the qualifications are similar to those for FirstHome.
Pros and cons
New Mexico down payment assistance and grants
FirstDown
You can pair a FirstHome loan with FirstDown, which offers a loan for 4 percent of the purchase price to cover down payment and closing costs. If you use the FirstDown program, you may be eligible to add a third mortgage – FirstDown Plus – which provides another $10,000 in the form of a zero-interest, 15-year loan with a monthly payment of $55.56.
Pros and cons
HomeNow
HomeNow is for first-time buyers who have a FirstHome loan and earn no more than 80 percent of their area median income (AMI). It provides $7,000 to cover down payment and closing costs, and the assistance is forgivable if the home remains your primary residence for ten years.
Pros and cons
HomeForward DPA
HomeForward DPA provides up to 3 percent of the purchase price for down payment assistance and must be paired with a HomeForward mortgage. The assistance comes in the form of a 10- or 15-year loan.
Pros and cons
City-specific homebuyer programs in New Mexico
Santa Fe County: Down Payment Assistance Program
Santa Fe County offers up to $20,000 in down payment assistance for households earning less than 65 percent of the AMI. The county also provides smaller awards — a minimum of $10,000 — for households earning up to 100 percent of the AMI. The money comes as a zero-interest, deferred loan, which means you won’t need to repay it until you move or pay off the first mortgage.
Requirements
Pros and cons
Rio Rancho: Housing Opportunity Program
The city of Rio Rancho offers up to $5,000 of down payment and closing cost assistance for first-time buyers. There’s no interest, and the amount is forgivable if you remain in the home for at least five years.
Requirements
Pros and cons
Albuquerque: Kirtland Credit Union Jump Start Assistance Program
This program will likely appeal most to borrowers in Albuquerque, home to most of Kirtland Credit Union’s retail locations — but buyers anywhere in New Mexico can qualify. The program offers up to $6,000 of assistance with down payment costs for members who are also first-time homebuyers. The money doesn’t need to be repaid unless you sell or refinance within four years.
Requirements
Pros and cons
Other New Mexico first-time homebuyer programs
Along with exploring options from Housing New Mexico and local organizations, consider these national loan programs that make homeownership more affordable:
FHA loans: With a loan from the Federal Housing Administration, you could qualify for a down payment of just 3.5 percent with a credit score of 580 or higher. If you have a score of at least 500, you may qualify to put 10 percent down.
VA loans: Designed for active-duty military personnel, veterans and surviving spouses, loans from the Department of Veterans Affairs don’t typically require a down payment.
USDA loans: If you’re a low- or moderate-income buyer planning to buy a home in a rural area, you might be eligible for a loan through the U.S. Department of Agriculture. Like VA loans, USDA loans are no-down payment mortgages.
Get started
As you prepare to plant your roots in New Mexico, follow these steps to make sure you’re ready.
See what other borrowers are saying about their experiences: Compare reviews of New Mexico mortgage lenders to get a sense of which companies offer top-notch customer service. Keep in mind that not all of these lenders will work with Housing New Mexico.
Look at average mortgage rates in New Mexico: See what lenders in New Mexico are offering right now. Don’t just look at the rate, though. Bankrate’s data includes upfront costs to help you better compare expenses.
Budget for homeowners insurance: In addition to your principal and interest, you’ll need to pay to protect the property. Compare homeowners insurance providers in New Mexico to get the best coverage at the lowest possible premium.
