HomeNow First-Time Homebuyer Assistance Programs

HomeNow: Your Shortcut to First-Time Homeownership in New Mexico

HomeNow is not just another down-payment assistance package—it’s a door flung wide open for New Mexico renters who dream of planting roots. Launched by the New Mexico Mortgage Finance Authority (MFA), this first-time homebuyer program layers forgivable aid on top of flexible loan options so you can step across the welcome mat sooner, not someday.

Below, you’ll find everything you need—quirks, perks, numbers, and a few nuggets you will not read on page one of Google. Whether you’re browsing bungalows in Belen or condos in Santa Fe, the following guide will help you decide if HomeNow is your best route to “home sweet home.”

What Is the HomeNow Program?

Developed by MFA, HomeNow is New Mexico’s flagship first-time homebuyer assistance package designed to cover some—or even all—of your required down payment and closing costs. The aid comes as a second mortgage without monthly payments. Stick around for 10 years and that second lien is fully forgiven. Leave earlier and you’ll repay only a prorated portion.

• Assistance amount: Up to 8% of the home’s purchase price (subject to caps).
• Structure: 0% interest, no monthly payments, forgiven after 10 years.
• Pairing: Works with FHA, USDA, VA, and conventional first mortgages originated through MFA.

In other words, if the house you want costs $250,000, HomeNow could contribute as much as $20,000—enough to cover the typical 3.5% FHA down payment and many closing fees.

How Does HomeNow Work in 2024?

The program is funded through a bond allocation that refreshes every year, so availability hinges on statewide demand and budget cycles. MFA funnels money to participating lenders, who in turn bundle the HomeNow second mortgage with your primary home loan. The lender then services your mortgage as usual; MFA keeps track of the forgivable lien in the background.

Eligibility Snapshot

Here are the must-haves before you apply:

• First-time buyer: No ownership interest in a primary residence during the past three years (exceptions apply for some target areas and veterans).
• Credit score: 620 minimum for most loans; 680 for certain conventional options.
• Income limits: Based on household size and county—generally $102,320–$129,000 for 1–2-person families in 2024.
• Purchase price cap: Roughly $481,176 statewide (varies by county and loan type).
• Homebuyer education: Completion of an HUD-approved course plus MFA’s free “eHome” module.

Income Limits & Price Caps at a Glance

To illustrate, a three-person household buying in Bernalillo County must keep annual income below approximately $118,824. Meanwhile, the cap in rural Catron County hovers near $96,000. These numbers update every spring; check MFA’s latest chart for pinpoint accuracy.

Why Choose HomeNow Over Other First-Time Buyer Options?

New Mexico offers several buckets of down payment help, including FIRSTHome and NEXTHome. So why is HomeNow often the crown jewel? Simple: larger assistance, 100% forgiveness after 10 years, and one monthly payment instead of two. While some programs tack on a repayment schedule or interest, HomeNow silently dissolves as long as you remain in the house.

Consider 27-year-old Maria, a teacher in Las Cruces who closed last fall. Her purchase price was $235,000; HomeNow delivered $18,800 in aid. She paid nothing out of pocket beyond her earnest money, and her monthly mortgage sits $145 lower than if she’d stacked a separate repayable second loan. Maria could redirect that savings toward her student loans, shortening her payoff timeline by three years—an outcome no simple “grant” calculator will show.

People Also Ask: Does HomeNow Cover Closing Costs?

Yes. Unlike some programs that focus strictly on the down payment, HomeNow can be applied to customary closing fees—appraisal, title policy, and even prepaid taxes—so long as the total assistance does not exceed 8% of the purchase price or your documented need. If you negotiate seller credits, you may strategically split the pot: seller pays part of your fees, HomeNow bridges the rest, and you walk away with cash intact.

People Also Ask: Can I Use HomeNow With an FHA Loan?

Absolutely. In fact, FHA is the most common partner because of its 3.5% down flexibility and lenient credit thresholds. Your lender layers the FHA first mortgage with a 0% interest, no-payment HomeNow second lien. When loan documents hit the county recorder, the two liens act as one symbiotic package—yet only the FHA piece shows up in your monthly statements.

If you later refinance or sell, any remaining unforgiven balance on the HomeNow lien is settled through your closing proceeds. After the 10-year forgiveness window, it simply vanishes, increasing your equity overnight.

Step-by-Step Guide to Getting Approved

1. Pick a lender on MFA’s approved list. They know the paperwork inside out.
2. Get pre-qualified. Supply W-2s, pay stubs, bank statements—standard fare.
3. Complete homebuyer education. Reserve a Saturday morning and you’re done.
4. Shop for homes within the price cap. Your agent filters MLS listings accordingly.
5. Lock your rate. Your lender uses MFA’s daily bond pricing for the first mortgage.
6. Submit the MFA package. Expect a 3- to 5-day turnaround.
7. Close and move in. Snap the celebratory selfie with keys in hand.

7 Pro Tips to Maximize Your HomeNow Benefit

• Time your application. MFA releases new allotments each fiscal cycle; funds can deplete by late summer.
• Ask about manufactured housing. The program now permits select HUD-code homes on permanent foundations.
• Leverage seller concessions. Combine them with HomeNow to trim your mortgage insurance up-front premium.
• Aim for 660+ credit. A higher score could shave 0.125% off your first mortgage rate.
• Stack with local grants. Cities such as Albuquerque offer separate $2,000–$5,000 credits; MFA allows layering if guidelines align.
• Keep receipts. Energy-efficiency upgrades may qualify for state tax rebates your first year.
• Stay put for 10 years. That’s the simplest way to convert a loan into a gift.

Common Myths Debunked

“I’ll pay higher interest.” MFA’s bond-backed rates are typically lower than prevailing market rates. According to Freddie Mac’s weekly survey, 30-year conventional loans averaged 6.6% in Q1 2024, while MFA’s posted rate hovered near 6.1%.

“I make too much to qualify.” More than half of HomeNow recipients last year earned between 80% and 120% of area median income—solid middle-class paychecks.

“It’s only for Albuquerque.” Every county is eligible, and 42% of 2023 closings happened in rural ZIP codes, MFA data show.

FAQ

Is HomeNow the same as FIRSTHome?
No. FIRSTHome offers 30-year fixed mortgages with optional down-payment aid; HomeNow specifically adds a forgivable second lien for added support.

Can I combine HomeNow with a VA loan?
Yes, if you meet VA guidelines and MFA’s income limits, you can enjoy 100% financing plus help with closing costs.

What happens if I refinance before 10 years?
Any remaining HomeNow balance is repaid from the new loan proceeds, minus the portion already forgiven.

Are condos eligible?
Approved condos that meet FHA, VA, or conventional standards can use HomeNow assistance.

Does HomeNow require mortgage insurance?
Only if the first mortgage type (e.g., FHA) requires it; the second lien itself carries no MI.

Ready to Make New Mexico Home?

If you’re tired of watching rent checks disappear like water in desert sand, it’s time to explore HomeNow. Reach out to a participating lender or visit HousingNM.org to start your application. The sooner you jump in, the sooner that 10-year forgiveness clock starts ticking—toward a future where your house payment builds equity, not your landlord’s portfolio.