Recently, something quite unusual happened in New Mexico's housing market: home prices dropped slightly. At the start of the year, the median home price decreased by about half a percent from the previous year, landing at $344,400.
With housing prices rising almost everywhere else, this drop offers a bit of relief for first-time homebuyers in New Mexico. However, buying a home is still a significant expense, and gathering enough money for the initial costs can be tough.
Thankfully, help is available, especially for first-time buyers, through programs offered by Housing New Mexico.
Key Housing Market Stats in New Mexico
- Median Home Price (as of January 2025): $344,400
- Median Down Payment (as of December 2024): $55,644
- Most Affordable Counties: De Baca, Hidalgo, Quay, Union
Programs for First-Time Homebuyers
- FirstHome: This is a loan program aimed at buyers with low to moderate incomes. It supports several types of loans including FHA, USDA, and VA, and can be combined with down payment help from Housing New Mexico or other sources.
- HomeForward: Suitable for both first-time and repeat buyers, this mortgage option is available if your income is higher than what's allowed for the FirstHome program.
Down Payment Help and Grants
- FirstDown: This provides a loan covering 4 percent of the home's purchase price to help with your down payment and closing costs. If using FirstDown, you can also apply for FirstDown Plus, adding a $10,000 zero-interest loan repayable over 15 years with monthly payments of about $55.56.
- HomeNow: For buyers using the FirstHome loan who earn no more than 80 percent of the area median income, the HomeNow program offers $7,000 to help with down payment and closing costs. It's forgivable if you stay in the home for ten years.
- HomeForward DPA: This program provides up to 3 percent of the purchase price towards the down payment. It must be paired with a HomeForward mortgage and is repayable over 10 or 15 years.
Local Programs in New Mexico
- Santa Fe County: Offers up to $20,000 in down payment help for households earning below 65 percent of the AMI, with smaller amounts for those earning up to 100 percent of the AMI. It's a zero-interest, deferred loan.
- Rio Rancho: Provides up to $5,000 for down payment and closing costs, forgiven if you stay in the home for at least five years.
- Albuquerque (Kirtland Credit Union Jump Start Assistance Program): Offers up to $6,000 for down payment assistance to members who are first-time buyers. This doesn't have to be repaid unless you sell or refinance within four years.
You may also explore housing assistance and support from the Federal Government. Click here to find out more.
Additional Tip
As you plan to buy your first home in New Mexico, consider these steps:
- Research Lenders: Look at reviews of New Mexico mortgage lenders to find those that provide excellent customer service.
- Check Current Mortgage Rates: Stay updated on what lenders in New Mexico are offering, considering both the rates and upfront costs.
- Plan for Homeowners Insurance: Remember to budget for insurance to protect your new home. Compare rates to get the best coverage at a reasonable price.
By exploring state-specific programs and familiarizing yourself with available resources, owning a home in New Mexico can become a more achievable dream for first-time buyers.
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