First-time home buyer programs in New Mexico

What does Housing New Mexico offer?

Housing New Mexico’s mortgage programs provide “down payment and closing cost assistance as well as competitive interest-rate mortgage loans.” You get them only through an MFA-approved participating lender. The lender can tell you which combination fits your income.

The combined FirstDown (or HomeNow) and FirstDown Plus loans cannot exceed $35,000. FirstDown Plus funds are limited and go first-come, first-served.

An example at a $300,000 price

This is an illustration of MFA’s formulas, not an offer. On a $300,000 home, FirstDown could be as high as $12,000 (4%). Adding FirstDown Plus brings the total to $22,000, under the $35,000 cap. A HomeNow buyer would get $7,000, or $17,000 with FirstDown Plus. HomeForward DPA would reach at most $9,000 (3%).

Who qualifies?

All MFA programs share these rules, from the fact sheets and the MFA programs page:

• Credit score of at least 620. The fact sheets accept alternative credit qualification in certain cases for buyers with no score.
• Homebuyer counseling before you buy. It can be MFA’s online course (eHome America) or a HUD-approved counseling agency.
• First-time buyer for FirstHome, FirstDown, FirstDown Plus and HomeNow. That means you have not owned and occupied a home as your primary residence in the past three years. HomeForward has no such rule.
• Primary residence. You must move in within 60 days of closing, and you cannot use the property to produce income.

What are the income and price limits in Albuquerque?

Limits depend on household size and county. The table shows the limits MFA lists for Bernalillo County, effective July 27, 2026. Bernalillo is part of the Albuquerque metropolitan area, which MFA groups with Sandoval, Torrance and Valencia counties.

A targeted area is a census tract where at least 70% of households earn no more than 80% of the area median income. In those tracts, MFA waives the first-time buyer requirement, raises the limits and gives the lowest rate offered on the same loan type in the past 12 months. MFA lists 13 targeted tracts in Bernalillo County, and your loan officer checks an address with the FFIEC lookup tool. Limits and tracts can change without notice, so ask the lender for the current table.

What happens when you sell? The recapture tax

If you bought with FirstHome, you may owe the IRS part of your profit under the federal recapture tax. MFA says it applies only if you sell at a net profit, within the first nine years, and your household income grew by more than 5% a year compared with the FirstHome limit in effect when you bought. The amount can never exceed 50% of your net profit or 6.25% of the original mortgage, whichever is less. You file IRS Form 8828 for the year of sale. See our guide to capital gains on a home sale for the general rules.

What help does the City of Albuquerque offer?

The City’s affordable home ownership page, which we read on October 13, 2026, does not describe a City-funded down payment program. It says the City “supports opportunities for low and moderate-income residents to purchase homes affordably” and lists three nonprofit housing organizations to contact, with phone numbers. The City’s Department of Senior Affairs also does chores and repairs for residents aged 60 and older. This article does not cover Bernalillo County programs.

How to apply

1. Call or look up an MFA participating lender; MFA’s homeownership line is 505-843-6881.
2. Complete homebuyer counseling.
3. Ask the lender to check your income against the limits and to reserve the loans.
4. Compare the cost with other options, such as FHA loans and VA loans, which FirstHome can pair with.

Down payment help does not cover everything. See closing costs in New Mexico, our page on buying a home in Albuquerque and New Mexico home prices.