Jul 28, 2025 2025-12
Housing New Mexico Hazard Insurance Update
Dear Participating Lenders:
Housing New Mexico | MFA announces an update to Hazard Insurance Deductible requirements.
When purchasing hazard insurance policies, borrowers should carefully consider the cost of insurance premiums and the insurance deductibles, based on their unique financial circumstances. This would include the need to consider their ability to pay high deductibles should they need to make a claim.
Beginning on August 1, 2025, Housing New Mexico will accept the following maximum deductibles:
Hazard Insurance: The lesser of 5% of the face amount or $10,000.
Flood Insurance: Required when applicable, with minimum coverage equal to the loan amount or replacement cost. Maximum deductible of $5,000.
Wind/Hurricane Insurance: Required where applicable, with minimum coverage equal to the loan amount or replacement cost. Maximum deductible is the greater of 2% or $2,000 of the face amount.
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.
