Homebuyer Program of the Week: Housing New Mexico | New Mexico Mortgage Finance Authority (MFA) HomeForward First Mortgage Loan
Why This Program Matters Right Now
New Mexico homebuyers may be ready to purchase a home but still need a financing option that supports both mortgage qualification and upfront cost planning. The Housing New Mexico | New Mexico Mortgage Finance Authority (MFA) HomeForward First Mortgage Loan helps buyers access a first mortgage program that can work with multiple loan types and may be paired with down payment assistance.
This program is especially useful because HomeForward can be used with HomeForward DPA, an optional down payment assistance second mortgage loan that provides 3% of the sales price. For eligible buyers purchasing a primary residence in New Mexico, the program can help create a more structured path to homeownership.
What the MFA HomeForward First Mortgage Loan Provides
The MFA HomeForward First Mortgage Loan is offered through Housing New Mexico | New Mexico Mortgage Finance Authority (MFA). It is a first mortgage loan program that can be used by both first-time and non-first-time homebuyers.
The program can be used with several mortgage options, including:
FHA loans
VA loans
USDA loans
HFA Advantage loans
HFA Preferred Conventional mortgage loans
The program may also be used with HomeForward DPA, which provides an optional down payment assistance second mortgage equal to 3% of the sales price.
MFA HomeForward First Mortgage Loan Structure
The HomeForward First Mortgage Loan is structured as a first mortgage program. The screenshots also note that it can be used with HomeForward DPA, an optional down payment assistance second mortgage loan.
Key structure details include:
Program type: Down payment assistance
Funding type: First mortgage
Maximum assistance: 3% of sales price
Assistance calculation: Percentage of sales price or appraised value
Repayment required: Yes
Repayment terms: Contact lender
Interest rate: Not publicly disclosed
Use of funds: First mortgage
Because repayment terms are listed as “Contact Lender,” buyers should review the full mortgage and DPA structure with an MFA-approved participating lender before moving forward.
Key Numbers
Maximum assistance: 3% of sales price
Minimum assistance: N/A
Credit score requirement: 620
Income limits: Apply
Maximum household income: Not publicly disclosed
Minimum household income: N/A
Repayment required: Yes
Repayment terms: Contact lender
Interest rate: Not publicly disclosed
Maximum purchase price: Not publicly disclosed
Minimum payment to receive assistance: Not specified
$0 down payment: Not publicly disclosed
Eligibility Requirements
To qualify for the MFA HomeForward First Mortgage Loan, buyers must meet program, income, credit and occupancy requirements.
Eligibility requirements include:
Must purchase a home in New Mexico.
Must meet income limits.
Must have a minimum credit score of 620.
Alternative credit qualification may be acceptable in certain cases for homebuyers with no credit score.
Must occupy the property as a primary residence within 60 days of closing.
Must work through MFA-approved participating lenders.
Must complete required pre-purchase homebuyer counseling.
The program is available to both first-time and non-first-time homebuyers.
Property Requirements
The MFA HomeForward First Mortgage Loan is available for eligible homes in New Mexico. The program is used to finance single-family residences, and buyers must occupy the property as their primary residence within 60 days of closing.
Property requirements include:
Home must be located in New Mexico.
County eligibility: All
Property must be used as the buyer’s primary residence.
Buyer must occupy the property within 60 days of closing.
Allowable property type: Single-family residences
Maximum purchase price: Not publicly disclosed
How the Process Works
Review the MFA HomeForward First Mortgage Loan and related income and purchase price limits.
Contact a homeownership representative at 505-843-6881.
Connect with an MFA-approved participating lender.
Complete required pre-purchase homebuyer counseling.
Apply for the HomeForward first mortgage and review whether HomeForward DPA applies.
Complete the mortgage approval process and occupy the property as a primary residence within 60 days of closing.
MFA HomeForward First Mortgage Loan Affordability Impact
The MFA HomeForward First Mortgage Loan helps eligible New Mexico buyers access a first mortgage program that can work with several common loan types. When paired with the optional HomeForward DPA second mortgage, buyers may receive assistance equal to 3% of the sales price.
This program can help reduce upfront cash required when the optional DPA is used. Buyers should confirm the full repayment structure, loan terms and eligibility requirements with an MFA-approved participating lender.
Where This Fits in the Market
The MFA HomeForward First Mortgage Loan fits within the category of state housing finance programs that combine first mortgage access with optional down payment assistance. Rather than functioning only as a stand-alone assistance program, HomeForward provides a mortgage structure that may be paired with DPA support.
For New Mexico buyers who qualify, the program may be useful when they need a first mortgage option that works with FHA, VA, USDA, HFA Advantage or HFA Preferred Conventional loans. The added DPA option can help buyers reduce upfront barriers while still meeting credit, income, counseling and occupancy requirements.
Find the Right Programs for You
If you are a homebuyer visit the Wallet Wizard so you can find the right programs and a team that will get you the best deal possible.
If you are an agent or loan officer visit our Professional Dashboard, which has instant access to 1400+ homebuyer programs.