New Mexico Mortgage Overview
New Mexico, or the 'Land of Enchantment' is
a beautiful place to live. It's a state with a cultural history and incredible
landscape. Home to just over 2 million people and with a median home price of
$171,000 it's easy to see why people live in New Mexico.
If you'd like to call New Mexico your home,
here are some great home loan options.
New Mexico conventional loans
Conventional
loans have strict guidelines, but it's worth it. You need a 660+ credit score
and a 36 percent debt ratio to qualify. If you're a first-time homebuyer put
down just 3 percent and subsequent homebuyers must put down 5 percent. Any down
payment less than 20 percent means you'll pay Private Mortgage Insurance but
only until you owe less than 80 percent of the home's value.
New Mexico FHA loans
FHA loans require a
minimum 580 credit score and a 3.5 percent down payment so it's a more flexible
program. You can get by with a 45 - 50 percent debt ratio, and even a blemished
credit history. FHA loans require mortgage insurance for the loan's term but
the rates are affordable. There is an upfront funding fee too.
New Mexico VA loans
Military veterans and
current military members get 100 percent financing from a VA lender. You need a
620 credit score and enough income to cover the mortgage, consumer debts,
including the new mortgage and the daily cost of living. VA loans don't require
a down payment or mortgage insurance, but there is an upfront funding fee most
veterans pay.
New Mexico USDA loans
If rural living is on
your radar and you make less than 115 percent of the area's median income, the
USDA loan may be a good option. You'll need at least a 640+ credit score to
qualify and a max 41 percent debt ratio. USDA loans provide 100 percent
financing. They have some of the lowest interest rates and mortgage insurance rates
too.
First-Time Homebuyer
Programs in New Mexico
FIRSTHome
First-time homebuyers with at least
a 620 credit score and low to moderate-income may qualify for the FIRSTHome
program. You must contribute $500 from your funds and you can use this with the
Down Payment Assistance programs available to you. You must undergo homebuyer
education before you qualify.
FIRSTDown
This is a second mortgage program
that provides New Mexico homebuyers with down payment and closing cost
assistance. You must combine this program with the FIRSTHome program to
qualify. You may receive up to $8,000 in assistance and it comes as an
affordable second mortgage.
NEXTHome
This is a combination of afirst
mortgage and down payment assistance program as a second mortgage which is 3
percent of the first loan. Borrowers need a 620 credit score and the second
loan is forgiven if you meet certain requirements.
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