Introduction
- Homeownership in Albuquerque is achievable
- Various down payment options
- Robust assistance programs
- K2 Omni Group: Creating a clear path to homeownership
Conventional Down Payment Options
Traditional Down Payments:
- 3% to 20% of home purchase price
- Amount varies based on:
- Loan type
- Credit score
- Lender requirements
Low Down Payment Loans:
- As little as 3% down for qualified buyers
- Makes homeownership accessible without large upfront costs
New Mexico MFA Programs
Primary source for down payment assistance:
- Available statewide
- Helps both first-time and repeat buyers
- Multiple program options
FirstHome + FirstDown
Who Qualifies:
- First-time buyers
- Those who haven't owned a home in past three years
How It Works:
- FirstHome: Affordable, fixed-rate primary mortgage
- FirstDown: Second mortgage providing up to 4% of purchase price
- Can be used for down payment and closing costs
Requirements:
- Minimum credit score of 620
- Homebuyer education
- Income/location limits
- $500 minimum contribution
HomeNow
Who Qualifies:
- First-time buyers
- Household income below 80% of area median
How It Works:
- $7,000 deferred, forgivable loan
- For down payment and closing costs
- Forgiven after five years if you remain in home
Requirements:
- Must be paired with FirstHome loan program
- Income and location restrictions
- $500 minimum contribution
HomeForward & HomeForward DPA
Who Qualifies:
- Both first-time and repeat buyers
- Low to moderate incomes
How It Works:
- Provides 3% of home's sales price
- Can be used for down payment or closing costs
Requirements:
- Credit score restrictions
- Income limitations
- Location requirements
- $500 minimum contribution
NEXT Home Program
Who Qualifies:
- Not limited to first-time buyers
How It Works:
- 3% grant (does not need to be repaid)
- For down payment and closing costs
Requirements:
- Minimum $500 personal contribution
DownPaymentAdvantage
Who Qualifies:
- Borrowers earning less than 80% of area median income
How It Works:
- $25,000 grant
- Can be combined with other MFA programs
- Up to $35,000 in total assistance possible
Program Comparison
| Program | Who Qualifies | Amount | Repayment | Min. Contribution |
|---|---|---|---|---|
| FirstHome + FirstDown | First-time buyers | Up to 4% | Second mortgage | $500 |
| HomeNow | Low-income, first-time | $7,000 | Forgivable after 5 yrs | $500 |
| HomeForward DPA | Low/moderate income | 3% of price | Grant | $500 |
| NEXT Home | Any buyer | 3% grant | No repayment | $500 |
| DownPaymentAdvantage | 80% area median income | $25,000 grant | No repayment | Varies |
Frequently Asked Questions
Do I need perfect credit?
- Most programs require minimum credit score of 620
- If your score is below a 620 there are still option available and most cases we can help pair you with a credit specialist with a plan to improve your score.
Is homebuyer education mandatory?
- Yes, for most assistance programs
Can I combine programs?
- Some can be combined for greater assistance
- Example: DownPaymentAdvantage + FirstDown + HomeNow = up to $35,000
How to Get Started
-
Assess your eligibility
- Review income, credit score, homeownership history
-
Contact a participating lender
- Determine which programs you qualify for
- Get guidance through application process
-
Complete homebuyer education
- Required for most programs
- Valuable resource for first-time buyers
-
Work with a trusted agent
- K2 Omni Group will help navigate every step
- From pre-approval to closing
Final Thoughts
Don't let the myth of a 20% down payment keep you from homeownership!
Albuquerque and New Mexico offer various assistance programs making buying a home more accessible than ever.
Contact Us
K2 Omni Group Your local experts in Albuquerque real estate and homebuyer assistance
505-750-2837 or at [email protected]
Sources
- New Mexico Mortgage Finance Authority
- New American Funding
- The Mortgage Reports
- NM Welcome Home
- K2 Omni Group
