For low-income households, HOMENow offers as much as $8,000 (or 8% of the purchase price – whichever is less). This is a second mortgage meant to help with the costs of purchasing a home, including the down payment and closing.
This loan does not have a monthly payment and is forgivable providing that the applicant uses the property as their primary residence for 10 years, and does not sell, refinance, transfer, rent, or vacate the property in that period.
Only first-time homebuyers can qualify. Further, applicants must be able to put down $500 from their own liquid assets towards the home purchase. This amount cannot come from a gift, grant, or different down payment assistance. Applicants must also have a FIRSTHome mortgage to be able to utilize HOMENow.
Income and purchase price limits will apply. The minimum allowed credit score is 620. If the applicant does not have a credit history, other ways to measure creditworthiness can be determined. Both homebuyer education and counseling will be required.
The property being purchased using this program must be in New Mexico and can be a single-family house, detached site-build, condo, townhome, or planned unit development. Manufactured homes can also be allowed providing that they are double-wide, have a permanent foundation, and are assessed as real property. All properties being purchased using this program must serve as the applicants’ primary residences within 60 days of closing. Rental units are not allowed.
To utilize HOMENow, the applicant must be working with a participating lender.
Other programs in New Mexico: