Downpayment Assistance Program

What is Downpayment Assistance Program?

Downpayment Assistance Program is a deferred second loan for homebuyers in Santa Fe County, New Mexico.

• Santa Fe County HUD HOME-funded 0% deferred second mortgage up to $30,000 for FTHB at ≤80% AMI purchasing in unincorporated Santa Fe County. 5-15 year HOME affordability covenant.
• The Santa Fe County Downpayment Assistance Program (also known as the Homebuyer Assistance Program / HAP) provides up to $30,000 in 0% interest, deferred-payment second mortgage assistance to low-income first-time homebuyers purchasing a home within unincorporated Santa Fe County (excluding the City of Santa Fe, which administers a separate municipal DPA program). Funds may be applied to down payment, closing costs, and reasonable buy-down of principal. The loan is at 0% interest with no monthly payments.
• the full balance is due upon sale, refinance, transfer of title, or when the home is no longer the borrower's primary residence. Funded through the federal HUD HOME Investment Partnerships Program administered by Santa Fe County Community Services Department.
• Funding comes from Federal and HOME.

Do you have to pay it back?

Downpayment Assistance Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Full balance due on sale, refinance, transfer of title, or when home is no longer borrower's primary residence (e.g., property put up for rent or no longer owner-occupied). HUD HOME affordability covenant period (5-15 years per subsidy amount under 24 CFR 92.254) governs recapture vs. resale provisions.
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Downpayment Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Downpayment Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

• 80% AMI for Santa Fe County (Santa Fe MSA) per HUD income limits. Per seed: $20,900 (1p extremely low / very low) up to $105,100 (8p 80% AMI). Actual schedule includes 50%, 60%, 80% AMI tiers depending on assistance amount.
• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Downpayment Assistance Program caps the purchase price as follows: Maximum purchase price tied to HUD 95% of median sales price for Santa Fe MSA per 24 CFR 92.254; updated annually. As of 2025 Santa Fe County HUD HOME limit approximately $441,000.

• Eligible property types include Single-family detached, condominium, townhouse, PUD, manufactured home on permanent foundation and must be located in unincorporated Santa Fe County.
• New construction is eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

Downpayment Assistance Program names veterans, active-duty service members, reservists and National Guard members, surviving spouses, American Indian and Alaska Native buyers, and buyers with disabilities among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Downpayment Assistance Program serves buyers purchasing in Santa Fe County, New Mexico.

How do you apply?

Applications for Downpayment Assistance Program go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through HUD-approved homebuyer education required (Homewise, Tierra del Sol Housing Corporation, Santa Fe Community Housing Trust, eHome America, or Framework)..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Direct application to Santa Fe County Community Services Department; first-come, first-served while annual HOME allocation funds last., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.