Sep 12, 2025 2025-14

HomeNow Limited Funding Program Update

Dear Participating Lenders:

HomeNow is a down payment assistance (DPA) program exclusively available to low-income first-time homebuyers whose income is equal to or less than 80% of the Area Medium Income (AMI). Funds may be used toward down payment and closing costs.

Current home prices combined with the current interest rate environment make it increasingly difficult for low-income borrowers to purchase a home. Housing New Mexico | MFA is temporarily increasing the HomeNow loan amount with the final remaining available program funding. Remaining funding will assist 20 households whose income is equal to less than 80% of the area medium. Program eligible borrowers may combine HomeNow with FirstDown Plus for additional down payment assistance.

Current HomeNow Loan Structure

Currently HomeNow provides a fixed $7,000 non-amortizing, 10-year forgivable second mortgage. The remaining principal balance is forgiven in the 11th year, as long as the borrower does not sell, transfer or refinance the property within 10 years.              

Temporary HomeNow Loan Program – Subject to Funding Availability

The HomeNow loan amount will temporarily be increased to a fixed $14,000 non-amortizing, 10-year forgivable second mortgage. The remaining principal balance is forgiven in the 11th year, as long as the borrower does not sell, transfer or refinance the property within 10 years.

What You Need to Know

• Effective with new reservations dated September 15, 2025, through March 31, 2026, or until available funds have been exhausted, whichever comes first.
• Current funding only supports 20 loans.
• This is a temporary change to the program. HomeNow loan amounts and terms will revert on April 1, 2026, or when current funding is exhausted.
• Borrowers must qualify for and obtain a FirstHome 30-year, fixed rate, fully amortizing first mortgage loan.
• All areas of the state, including Federally Designated Tribal Land, are eligible.
• Housing New Mexico program calculated income must not exceed the lessor of the published HomeNow or FirstHome area median income, the limits vary by county and household size.
• Funds are available for use in metro / non-metro areas.
• Program funding is limited and is reserved on a first come, first served basis.
• Loans must be purchased within 90 days or funds may revert to the fund allocation.
  • Exception: new construction loans must be purchased within 120 days or funds may revert to   the fund allocation.
• Funds cannot be transferred and remain subject to Housing New Mexico | MFA’s (“HNM”) Rate Lock Protocol.
  • Changes to the rate lock may result in funds reverting to the program allocation.
• Funds cannot be transferred between different borrowers.
• The outstanding balance of the loan is due upon sale, refinance, or transfer of the property.
• All other HomeNow program requirements apply.

Should you have questions, please contact a member of the Housing New Mexico | MFA Homeownership Department at 505-843-6880 or by e-mail: singlefamily@housingnm.org.

Thank you for participating in Housing New Mexico | MFA programs.