Down Payment Options and Assistance Programs in Albuquerque

Buying May 14, 2025

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