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.

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.

Downpayment Assistance Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Displaced homemakers and single parents with custody of minor children are considered first-time homebuyers per HUD HOME rules even if they previously owned a home with a spouse. On credit, the program states: No published minimum FICO from Santa Fe County; per first-mortgage lender requirements (typically 620 minimum when paired with NM MFA first mortgage). A homebuyer education course is required, through HUD-approved homebuyer education required (Homewise, Tierra del Sol Housing Corporation, Santa Fe Community Housing Trust, eHome America, or Framework). Residency requirement: Property must be located within unincorporated Santa Fe County (excluding City of Santa Fe city limits, which has a separate program), and serve as borrower's primary residence. Citizenship or immigration status: Per HUD HOME eligibility: U.S. citizen or eligible non-citizen (24 CFR 5.508). Property must be located within unincorporated Santa Fe County (excluding the City of Santa Fe city limits). Borrower must be a first-time homebuyer (no ownership of principal residence in past 3 years). Owner-occupied principal residence. Annual household income at or below 80% Area Median Income for Santa Fe County / Santa Fe MSA per HUD ($20,900 1p extremely low up to $105,100 8p 80% AMI per 2025 HUD limits). HUD HOME affordability covenant applies (5-15 years per 24 CFR 92.254 depending on subsidy amount). HUD-approved homebuyer education required. Property must pass HUD Housing Quality Standards (HQS) inspection.

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.

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.

Downpayment Assistance Program names veterans, active-duty service members, reservists and National Guard members, surviving spouses, American Indian and Alaska Native homebuyers, and homebuyers 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.

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

Applications for Downpayment Assistance Program go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Direct application to Santa Fe County Community Services Department; first-come, first-served while annual HOME allocation funds last. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.