Down payment assistance in New Mexico
New Mexico's primary statewide down payment assistance program, run by New Mexico Mortgage Finance Authority (MFA). Numbers and eligibility reflect the program's published 2025 guidelines.
FirstDown
Second mortgage- Maximum assistance
- Up to $8,000 as a 30-year second lien
- Income limit
- Up to $134,560
- Home price limit
- Up to $481,176
- First-time buyer
- Required
- Eligible loan types
- FHA, VA, USDA, Conventional
- •30-year fixed second at the first-mortgage rate.
- •FirstDownPlus adds an additional $7,000 forgivable layer for very low-income buyers.
How New Mexico DPA fits into your purchase
Down payment assistance reduces the cash you need at the closing table. New Mexico's FirstDown pairs with the standard FHA, VA, USDA, or conventional first mortgage from a participating lender; the DPA flows through the same closing.
Two things to budget for: most state DPA requires a homebuyer-education course (typically online, 6-8 hours, ~$75) and you usually have to use a lender on the agency's approved list. The agency keeps the list public on its website.
Common questions
New Mexico's primary statewide DPA is FirstDown from New Mexico Mortgage Finance Authority (MFA). Up to $8,000 as a 30-year second lien. Many New Mexico cities and counties also run additional DPA layered on top.
Yes. The FirstDown requires that you have not owned a primary residence in the past 3 years. Veterans and target-area buyers are sometimes exempt.
Yes. FirstDown works with these loan types: FHA, VA, USDA, Conventional. The DPA is layered behind your first mortgage as a separate lien (or grant), and both close together.
Yes. A second-mortgage DPA has a monthly payment, and that payment is included in your debt-to-income ratio when the lender qualifies you.
Deferred and second-mortgage DPAs are generally repaid in full when you sell, refinance, or pay off the first mortgage.