What is the New Mexico FIRSTDown Program?
The New Mexico FIRSTDown Program provides down payment and closing cost assistance to eligible first-time homebuyers, making it easier to afford a home in New Mexico.
Who qualifies for the FIRSTDown Program?
Eligibility is open to first-time homebuyers who meet income, credit, and property requirements. Buyers must use the home as their primary residence.
How much assistance does the FIRSTDown Program provide?
The program offers up to $8,000 in assistance, which can be used toward down payment and closing costs.
Is the assistance provided as a loan or a grant?
The assistance is provided as a low-interest, repayable second mortgage loan, which is due upon sale, refinance, or payoff of the first mortgage.
What is the minimum credit score required for the FIRSTDown Program?
A minimum credit score of 620 is generally required, though higher scores may improve eligibility and loan terms.
Are there income limits for the FIRSTDown Program?
Yes, income limits apply and vary based on household size and the property’s location. These limits are updated annually to reflect market conditions.
What types of properties are eligible for the FIRSTDown Program?
Eligible properties include single-family homes, townhouses, and condominiums. Manufactured homes may qualify if they meet program requirements and are permanently affixed to a foundation.
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Get Started NowCan the FIRSTDown Program be used for newly constructed homes?
Yes, newly built homes are eligible as long as they meet program guidelines and are intended as the buyer’s primary residence.
Is homebuyer education required for the FIRSTDown Program?
Yes, completing a homebuyer education course is mandatory to ensure buyers understand the financial responsibilities of homeownership.
Can the FIRSTDown Program be combined with other assistance programs?
Yes, the FIRSTDown Program can often be combined with the FIRSTHome Program or other state assistance programs to maximize financial benefits.
What is the maximum purchase price allowed under the program?
The maximum purchase price is typically $400,000, though this may vary depending on location and program rules.
Are there debt-to-income (DTI) ratio limits for the program?
Yes, the program generally allows a maximum DTI ratio of 45%, although exceptions may apply based on other qualifying factors.
What fees are associated with the FIRSTDown Program?
Standard loan-related fees, such as origination, appraisal, and processing fees, may apply. Borrowers should confirm these costs with their lender.
What happens if I sell or refinance my home before paying off the FIRSTDown loan?
If you sell or refinance, the remaining balance of the FIRSTDown loan must be repaid at that time.
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Get Started NowCan the FIRSTDown Program be used to refinance an existing home?
No, the FIRSTDown Program is specifically designed to assist with purchasing a primary residence and does not apply to refinancing.
Are there reserve requirements for the FIRSTDown Program?
No specific reserve requirements are mandated, but having financial reserves may strengthen an applicant’s overall loan profile.
Are there location restrictions for the FIRSTDown Program?
Yes, the property must be located in New Mexico, and additional guidelines may apply depending on whether the home is in a targeted or non-targeted area.
What are the benefits of the FIRSTDown Program?
The program helps reduce upfront costs by covering down payment and closing expenses, making homeownership more attainable for first-time buyers.
How do I apply for the FIRSTDown Program?
Applicants must meet eligibility requirements and work with a program-approved lender who will guide them through the application process.
What is the loan term for the FIRSTDown assistance?
The assistance is structured as a second mortgage loan, which is repayable upon sale, refinance, or full payoff of the first mortgage.