HomeNow

What is HomeNow?

HomeNow is a forgivable loan for homebuyers in Statewide, New Mexico.

• NM MFA $7,500 fixed-amount 0% forgivable second mortgage for FTHB at ≤80% AMI. 10-year forgiveness (10% per year of owner occupancy). 620 FICO, 45% DTI. State HOME / Housing Trust Fund funded. Statewide.
• HomeNow is NM MFA's down payment and closing cost assistance program targeted at low-income (≤80% AMI) homebuyers in New Mexico. Eligible borrowers receive a $7,500 fixed-amount, 0% interest, deferred-payment second mortgage that is FORGIVABLE over a 10-year affordability covenant (10% per year of owner occupancy). No monthly payments. Pairs with NM MFA FirstHome or HomeForward first mortgage. HomeNow stacks on top of (or in lieu of) FirstDown as a separate second mortgage in some lender configurations.
• check NM MFA program guide. Funded through state Housing Trust Fund / Land Grant Permanent Fund and federal HOME funds. Ideal for first-time homebuyers at or below 80% HUD AMI by county.
• Funding comes from State and HOME.

Do you have to pay it back?

HomeNow is forgiven after 10 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Pro-rata balance due on sale, refinance, payoff of first mortgage, transfer of title, or when home is no longer borrower's principal residence within 10-year covenant period. Forgiven 10% per year of owner occupancy and fully forgiven after 10 years.
• The assistance is recorded in 2nd Lien (or 3rd Lien when stacked with FirstDown) position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

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

What are the income limits?

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

• HomeNow income limits ≤80% HUD AMI by county / household size. Per 2025 NM MFA schedule: $38,550 (1p smallest county) up to $137,550 (8p targeted Los Alamos County). Tighter than FirstHome / HomeForward limits.
• 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?

HomeNow caps the purchase price at $441,000.

• 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.

Is there eligibility for specific groups?

HomeNow names veterans, active-duty service members, reservists and National Guard members, surviving spouses, and American Indian and Alaska Native buyers 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?

HomeNow serves buyers purchasing in Statewide, New Mexico.

• The program targets specific areas: Federally designated IRS targeted census tracts where NM MFA waives the FTHB requirement; income limits remain ≤80% AMI but household-size schedule is more generous.

How do you apply?

Applications for HomeNow 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 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..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Reserved by NM MFA-approved participating lender via NM MFA's online lender portal at time of FirstHome / HomeForward first-mortgage rate lock., 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.