New Mexico MFA Home Loan Programs
A plain-English guide to the New Mexico Mortgage Finance Authority programs that help Albuquerque buyers get into a home.
What is the New Mexico MFA?
The New Mexico Mortgage Finance Authority (MFA) — you will also see it referred to as Housing New Mexico — is the state agency that helps working New Mexicans buy and keep their homes. It does not lend money directly to you; instead, it partners with a network of approved local lenders who offer MFA-backed loans and assistance programs.
The practical takeaway for Albuquerque buyers is this: MFA programs are designed to lower the two biggest hurdles to buying a first home — coming up with a down payment and qualifying for a competitive first mortgage. If you have felt like homeownership is out of reach, these programs exist precisely for you.
Because MFA works through approved lenders, the first step is always to connect with a participating lender who can confirm which program fits your income, credit and price range today.
FirstHome — the first mortgage for first-time buyers
FirstHome is MFA's flagship first-mortgage program for first-time homebuyers — generally someone who has not owned a home in the past three years, so plenty of people who owned long ago still qualify.
It is a first mortgage (the actual home loan), typically paired with down-payment help like FirstDown or HomeNow. Approved buyers generally need a minimum 620 credit score and must complete pre-purchase homebuyer counseling/education.
Eligibility looks at your household income and the home's purchase price against county limits — see the current Albuquerque-area figures further down.
FirstDown & FirstDown Plus — down-payment assistance loans
FirstDown is a fixed-rate second mortgage that covers down payment and closing costs. It must be combined with a FirstHome first mortgage and is for first-time buyers only — so you bring less cash to closing.
FirstDown Plus is an optional third mortgage for additional down-payment help. It's available to first-time buyers using FirstHome, or to buyers who haven't owned their primary residence in the past three years, and is layered on top of FirstHome and FirstDown.
HomeNow — 0% assistance that can be forgiven
HomeNow is a second mortgage for first-time buyers with lower household incomes. It carries a 0% interest rate and may be forgiven after 10 years if program conditions are met — often the option that makes buying suddenly feel possible for a household with income but little savings.
HomeNow has its own (lower) income and purchase-price limits, so a participating lender will confirm the current assistance amount and whether you qualify.
HomeForward — for repeat and higher-income buyers
HomeForward is MFA's first mortgage for repeat buyers and others who don't fit the first-time-buyer definition or exceed FirstHome's income limits. It can be used on its own or combined with HomeForward down-payment assistance.
There's also a New Home Rate Advantage — a permanent interest-rate reduction when you buy a newly constructed home under HomeForward. If you're relocating to New Mexico or have owned before, HomeForward is usually where a lender starts.
Current Albuquerque-area limits
These are the current figures for the Albuquerque metro (Bernalillo, Sandoval, and Valencia counties), from Housing New Mexico, effective 7/27/2026. Limits change periodically, so treat them as a snapshot and confirm the live numbers with a participating lender.
- FirstHome / FirstDown — max household income about $101,254 (1–2 people) or $116,443 (3+ people); purchase price up to about $566,354
- HomeForward — max income about $150,600 (1–4 people) or $162,750 (5+ people); purchase price up to about $629,283
- HomeNow (Bernalillo County) — purchase price up to about $299,000 for an existing home or $327,000 for new construction, with lower income limits than FirstHome
MFA interest rates change frequently, so I've deliberately left specific rates off this page — check MFA's current-rates page or ask a participating lender for today's number.
The required homebuyer education class and how to start
MFA requires buyers using its programs to complete an approved homebuyer education class. This is not busywork — it walks you through budgeting, credit, the mortgage process, and being a successful long-term homeowner. Many buyers tell me afterward that the class answered questions they did not even know to ask.
The class can typically be completed online or in person through an approved provider, and you receive a certificate that your lender will need in your file.
To get started: (1) contact an MFA-participating lender to get pre-qualified and learn which program fits, (2) complete your homebuyer education class, and (3) start shopping with a clear budget. I am happy to help you find an MFA-participating lender and to line up the home search once you know your numbers.
Frequently asked questions
Do I have to be a first-time buyer to use an MFA program?
No. FirstHome is aimed at first-time buyers (generally, people who have not owned a home in the past three years), but HomeForward serves repeat and other buyers. A participating lender can tell you which program fits.
Does MFA down-payment assistance have to be repaid?
It depends on the program. FirstDown is a fixed-rate second mortgage (repaid), and FirstDown Plus is an optional third mortgage for extra help. HomeNow is a 0% second mortgage that may be forgiven after 10 years if program conditions are met. Terms change, so confirm the current details with a participating lender.
Is the homebuyer education class really required?
Yes. Completing an approved homebuyer education class is a requirement for MFA programs. It can usually be done online or in person, and you will receive a certificate for your loan file.
How do I apply for an MFA program?
You apply through an MFA-participating lender, not through the state directly. The lender confirms your eligibility, matches you to the right program, and handles the loan.