Mortgage in New Mexico
New Mexico has many advantages for prospective homeowners. The cost of living in most parts of New Mexico is at or below average. Additionally, there are many activities to do outdoors, including cycling, rafting, kayaking, and climbing. The job market is diverse, and cities within the state are among the least polluted in the nation , which many families enjoy. If you're thinking of moving to New Mexico, try our New Mexico mortgage calculator to see how much housing there could cost you per month.
New Mexico Mortgage Calculator: Most People Will Choose One of Three Options
Prospective residents of New Mexico should know about three standard mortgage options.
- New Mexico conventional mortgage: Since many homes within New Mexico tend to be on the less expensive side, quite a few people go with a traditional conforming mortgage. This mortgage applies for single-family homes under $548,250. For these homes, a conventional mortgage requires as little as 3% down, a credit score of 620+, and a debt-to-income ratio of less than 50%.
- New Mexico FHA mortgage: FHA loans are popular in New Mexico due to the housing prices. These loans require as little as 3.5% down with a credit score as low as 580. You can even get an FHA loan with a credit score of 500. However, you'll need 10% down in that case.
- New Mexico VA mortgage: For those currently in the military or who have served honorably, the Veterans Administration backs loans with as little as 0% down. These loans don't require mortgage insurance, either.
If you're a first-time homebuyer, you should know that these options are not the only ones available. New Mexico has some state programs that help first-time homebuyers realize their dream of owning a home!
First-Time Homebuyers in New Mexico
The New Mexico Mortgage Finance Authority offers two programs that help prospective homeowners buy their first property.
FIRSTHome is a mortgage program that helps homebuyers get their first home. It offers first-time homebuyers more attractive rates and terms than other loan offerings than you'd get at the bank, and applicants can combine this offering with FIRSTDown (described below).
Eligibility Criteria: Minimum credit score of 620 required. Income and purchase price limitations apply. Buyers must contribute at least $500 of their funds. Finally, the home must become the buyer's primary residence.
FIRSTDown, as one might guess, is New Mexico's down payment assistance program. Applicants must have a FIRSTHome loan to use this program. It provides up to $8,000 to assist with down payment and closing costs.
Eligibility Criteria: This program is subject to the same requirements as the FIRSTHome program.
New Mexico Mortgage Calculator: See What It Will Cost To Live in the Land of Enchantment
With many job opportunities, a wide variety of things to do, and some of the most breath-taking scenery you'll find in the country, New Mexico is a fantastic place to live, work, and raise a family. If you're considering moving to the Land of Enchantment, please use our New Mexico mortgage calculator to get a good sense of what you can expect to pay for housing!