New Mexico FIRSTHome Program Guide

Guide to the New Mexico FIRSTHome Program

The New Mexico FIRSTHome Program is specifically designed to help first-time homebuyers achieve homeownership by providing affordable mortgage options and down payment assistance. This program is ideal for low- to moderate-income households looking to purchase their first home in New Mexico. Below is a detailed guide to the program’s benefits, eligibility requirements, and how to apply for 2025.

1. Program Overview:

• Purpose: The FIRSTHome Program provides low-interest mortgage loans and financial assistance to make homeownership more accessible for eligible buyers.
• Down Payment Assistance: Eligible buyers can receive support to cover down payment and closing costs, reducing the upfront financial burden of purchasing a home.
• Fixed Interest Rates: Borrowers benefit from fixed-rate mortgages, ensuring predictable monthly payments and long-term affordability.

2. Eligibility Requirements for 2025:

Applicants must meet the following criteria to qualify for the New Mexico FIRSTHome Program:

• First-Time Homebuyer: Applicants must be first-time buyers, defined as individuals who have not owned a home in the last three years. Exceptions may apply for veterans or buyers purchasing in targeted areas.
• Income Limits: Household income must fall within the program’s limits, which vary by county and household size. These limits are updated annually based on area median income (AMI).
• Purchase Price Limits: The home’s purchase price must not exceed program-specific limits, which are adjusted annually based on regional housing costs.
• Primary Residence: The property must be located in New Mexico and used as the buyer’s primary residence. Investment properties and vacation homes are not eligible.
• Homebuyer Education: Completion of a homebuyer education course is required to ensure buyers are prepared for the financial responsibilities of homeownership.

3. How to Apply:

The application process for the New Mexico FIRSTHome Program involves the following steps:

• Contact a Participating Lender: Begin by reaching out to an approved lender offering the program. They will verify your eligibility and assist you through the application process.
• Gather Required Documentation: Be prepared to provide proof of income, tax returns, credit reports, and a certificate from the required homebuyer education course.
• Submit Your Application: Work with your lender to complete the application and submit all required documents for review and approval.

4. Program Benefits:

• Affordable Financing: The program offers low-interest fixed-rate mortgages, making monthly payments more manageable for first-time buyers.
• Down Payment Assistance: Financial support reduces upfront costs, making it easier to afford a home.
• Long-Term Stability: Fixed interest rates provide predictable payments, ensuring financial security over the life of the loan.

5. Assistance Details:

• Assistance Amount: Eligible buyers can receive financial support based on their financial situation and program guidelines. The assistance amount typically covers a percentage of the home’s purchase price or a set dollar amount for down payment and closing costs.
• Repayment Terms: Assistance is often provided as a forgivable loan, with repayment not required if specific residency conditions, such as living in the home for a designated period, are met.

6. Additional Considerations:

• Combination with Other Programs: The FIRSTHome Program can often be combined with other state or federal assistance programs to maximize benefits for eligible buyers.
• Program Fees: Some fees may apply during the application process, which your lender will explain in detail.

The New Mexico FIRSTHome Program is an excellent opportunity for eligible buyers to achieve homeownership in 2025. By offering financial assistance and affordable mortgage options, the program reduces the barriers to buying a home. Contact a participating lender today to learn more and start your application process.