FirstDown

FirstDown is a deferred second loan for homebuyers in Statewide, New Mexico. NM MFA $7,500 fixed-amount 0% deferred-payment second mortgage paired with FirstHome first mortgage. 620 FICO, 45% DTI, $500 borrower contribution. Statewide first-time homebuyer program. FirstDown is the New Mexico Mortgage Finance Authority's flagship down payment assistance second mortgage paired with the NM MFA FirstHome (first-time homebuyer) first mortgage. Eligible borrowers receive a $7,500 fixed-amount, 0% interest, deferred-payment second mortgage with no monthly payments. The full $7,500 balance is due upon sale, refinance, payoff of the first mortgage, transfer of title, or when the home is no longer the borrower's principal residence. Funds may be applied to down payment and/or closing costs. FirstDown is the most widely used NM MFA DPA product and is reserved by approved participating lenders concurrently with the FirstHome first mortgage rate lock. Funding comes from State and Bond.

FirstDown 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 $7,500 balance due on sale, refinance, payoff of first mortgage, transfer of title, or when home is no longer borrower's principal residence. No monthly payments during life of first mortgage. 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.

FirstDown is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Federally designated targeted census tracts (per IRS Section 143) and honorably discharged veterans waive the first-time-homebuyer requirement. On credit, the program states: 620 minimum representative mid-FICO across all NM MFA bond programs. A homebuyer education course is required, through NM MFA-approved homebuyer education provider; HUD-approved counseling agencies including Homewise, NeighborWorks Laredo, United South Broadway, Tierra del Sol Housing Corporation, eHome America, or Framework. Residency requirement: Property must be located in New Mexico and serve as borrower's principal residence. Citizenship or immigration status: U.S. citizen, permanent resident alien, or qualifying non-permanent resident alien per first-mortgage product overlays. Must qualify for and be paired with NM MFA FirstHome first mortgage. First-time homebuyer required (no ownership of principal residence in past 3 years; waived in federally targeted census tracts and for honorably discharged veterans). Owner-occupied principal residence. Income within FirstHome limits ($82,560 1-2p non-targeted up to $191,705 3+p targeted by county per 2025 NM MFA schedule). Acquisition price within FirstHome limits ($544,232 non-targeted / $718,722 targeted). 620 mid-FICO minimum. 45% maximum DTI. $500 minimum borrower investment (giftable). NM MFA-approved homebuyer education required.

FirstDown limits household income to $191,705. 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.

FirstDown caps the purchase price at $718,722. Eligible property types include Single-family detached, condominium, townhouse, PUD and manufactured home on permanent foundation per servicer overlays. New construction is eligible. Manufactured homes are eligible.

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

FirstDown serves homebuyers purchasing in Statewide, New Mexico. The program targets specific areas: Federally designated IRS targeted census tracts (per Section 143) and Qualified Census Tracts where NM MFA waives the FTHB requirement and applies higher income / purchase price limits.

Applications for FirstDown go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Reserved by NM MFA-approved participating lender via NM MFA's online lender portal at time of FirstHome first-mortgage rate lock. 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.