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New Mexico First-Time Home Buyer Programs of 2019

July 9, 2019
Finding the Right Mortgage, Mortgages
new-mexico-first-time-home-buyer-programs
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Many people need help when buying their first home. That’s why the New Mexico Mortgage Finance Authority, or MFA, offers programs to give qualified first-time home buyers a chance to get affordable loans with low down payments at generous terms.

There also are national loan programs that benefit home buyers who have small down payments or imperfect credit histories. Check out all options when buying a first home in the Land of Enchantment.

National first-time home buyer programs

These loan programs are widely available and are worth a look, especially if you don’t have much money saved for a down payment or you have a few dings on your credit.

Conventional mortgage

National program

Best for

Low down payments

Limited mortgage insurance premiums

What you need to know

A conventional mortgage is a home loan that isn’t guaranteed or insured by the federal government. Conventional mortgages that conform to the requirements set forth by Fannie Mae and Freddie Mac allow down payments as low as 3% for first-time buyers or lower-income home buyers. Unlike FHA loans,

 

FHA loans

National program

Best for

Low credit score

Low down payment

What you need to know

Mortgages insured by the Federal Housing Administration, or FHA, offer relaxed qualification requirements, especially when it comes to down payment and credit score. You can qualify for an FHA home loan with a credit score as low as 500, but you’ll need a 10% down payment. If your score is 580 or

 

VA loans

National program

Best for

Military

Low down payment

What you need to know

The U.S. Department of Veterans Affairs helps service members, veterans and surviving spouses buy homes. VA loans are especially generous, providing competitive interest rates, often requiring no down payment or mortgage insurance. Although there is no official minimum credit score, most

 

USDA loans

National program

Best for

Low down payment

Rural

What you need to know

The USDA home loan program encourages rural and suburban homeownership by offering zero-down-payment mortgages to lower-income buyers. Borrowers with nontraditional credit data, like rent or utility payments, can still apply, but those with a score of 640 or above will experience faster loan

 

MFA highlights and eligibility requirements

To qualify as a first-time home buyer in New Mexico, you can’t have owned your own home in the last three years. If that describes you, you may qualify for one of these New Mexico MFA programs designed to ease your path into homeownership. NextHome down payment assistance is available to repeat buyers as well as first-timers.

» MORE: Tips for first-time home buyers

Highlights

  • Down payment and closing cost financial aid available, with income limits.
  • Available with HUD Section 184 loans to buy homes in Native American communities.
  • Can be used to finance single-family properties.
  • Loans are available from participating lenders.
  • Alternative credit qualification may be available for borrowers without a credit score.

Eligibility

  • 620 minimum credit score.
  • Borrowers must meet income limits that vary by family size and county.
  • Homes have purchase price limits.
  • Borrowers must contribute at least $500 of their own money.

Compare MFA lenders













Min. credit score

Conventional:
620

FHA, VA: 580





Min. down payment

3.0%





Loan Types

Purchase, refinance, jumbo, fixed, ARM, FHA, VA, and USDA



Min. credit score

Conventional, VA:
620

FHA: 580





Min. down payment

3.5%





Loan Types

Purchase, refinance, jumbo, fixed, ARM, FHA, VA, and USDA



Min. credit score

Conventional:
n/a

FHA: n/a





Min. down payment

3.0%





Loan Types

Purchase, refinance, reverse, jumbo, fixed, ARM, FHA, VA, and USDA



MFA first-time home buyer programs

 

FirstHome

State program

Best for

Low mortgage rates

What you need to know

This program offers competitive interest rates on mortgages for first-time home buyers who have low to moderate incomes. Lenders may not charge origination or discount fees. You have to contribute at least $500 of your own money. You must complete pre-purchase home buyer counseling.

 

NextHome

State program

Best for

Down payment assistance

What you need to know

This program offers down payment assistance in a forgivable loan with no monthly payments. The money can finance the down payment and closing costs. The assistance is available to first-time and repeat home buyers.

 

FirstDown

State program

Best for

Down payment assistance

What you need to know

In combination with a FirstHome primary loan, FirstDown is down payment and closing cost assistance of up to $8,000 as a second mortgage. In contrast with NextHome, FirstDown has monthly payments. There is no minimum amount.

 

HomeNow

State program

Best for

Down payment assistance

Low-income borrowers

What you need to know

HomeNow is down payment assistance for home buyers with low incomes. To qualify, you have to earn 80% or less than your area's median income. The assistance is a second mortgage up to $8,000. The HomeNow loan is forgivable, and there are no monthly payments. It must be paired with a FirstHome

 

Summary: 2019 New Mexico MFA first-time home buyer programs

  • FirstHome for low-fee mortgages with competitive interest rates.
  • NextHome for forgivable down payment assistance with no monthly payments.
  • FirstDown for down payment assistance that has to be repaid in monthly payments.
  • HomeNow for forgivable down payment assistance, with no monthly payments, for people with low incomes.

These are the general outlines of New Mexico MFA’s loan programs for first-time home buyers. To get into the details, visit New Mexico MFA’s mortgage programs page. Lending decisions are made by the programs’ participating lenders. If you find loan and down payment assistance programs that fit, contact a lender directly.

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