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By Tyler Thompson · Licensed Real Estate Agent · Updated May 7, 2026

Homebuyer Programs in Albuquerque, NM (2026)

Population: 562,218 | Median home price: $385,000 | Est. closing costs: $7,500 - $11,500

Skyline of Albuquerque, NM

Albuquerque is the largest city in New Mexico, anchoring Bernalillo County along the Rio Grande with a metro population near one million. The median home price is approximately $385,000. First-time buyers in Albuquerque can stack significant assistance from Housing New Mexico, including up to $8,000 from FirstDown, $7,000 (temporarily $14,000) from HomeNow for buyers at or below 80% AMI, $10,000 from FirstDown Plus, and a $25,000 DownPaymentAdvantage grant — combined assistance can total up to $35,000. Local options include the City of Albuquerque Workforce Housing Trust Fund, the Greater Albuquerque Habitat for Humanity homeownership program, the Sawmill Community Land Trust, and HUD-approved counseling and DPA support from Homewise and United South Broadway Corporation. Combined with federal FHA, VA, USDA, and conventional financing, qualified buyers can dramatically reduce their out-of-pocket cash to close.

City Programs in Albuquerque

City of Albuquerque Workforce Housing Trust Fund
Type:
Forgivable Loan
Amount:
Down payment assistance amount varies by funded project; awards delivered through partner nonprofit developers
First-time only:
No

State Programs in New Mexico

Housing NM DownPaymentAdvantage Grant
Type:
Grant
Amount:
$25,000
First-time only:
Yes
Housing NM FirstDown Plus Program
Type:
Zero-Interest Loan
Amount:
$10,000
First-time only:
Yes
Housing NM FirstDown Program
Type:
Forgivable Loan
Amount:
Up to $8,000 (capped at 8% of purchase price)
First-time only:
Yes
Housing NM FirstHome Program
Type:
Repayable Loan
Amount:
First mortgage financing at competitive rates
First-time only:
Yes
Housing NM HomeNow Program
Type:
Forgivable Loan
Amount:
Up to $7,000 (temporarily $14,000 through April 1, 2026 or until funding exhausted)
First-time only:
Yes
Housing NM NextHome Program
Type:
Repayable Loan
Amount:
First mortgage with built-in down payment assistance second loan
First-time only:
No
Housing NM Targeted Areas Program
Type:
Repayable Loan
Amount:
Lower mortgage rates, higher purchase price limits, plus down payment assistance
First-time only:
No

Federal Programs

FHA Loans
Type:
Government-Insured Mortgage
Amount:
Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
First-time only:
No
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:
No
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HomeReady Mortgage (Fannie Mae)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HUD $100 Down Program
Type:
FHA-Financed HUD REO Purchase
Amount:
Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
First-time only:
No
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
Type:
Government-Guaranteed Mortgage
Amount:
No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
First-time only:
No

Nonprofit Programs

Greater Albuquerque Habitat for Humanity Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable home with 0% interest mortgage; monthly payment generally around 30% of household gross monthly income
First-time only:
Yes
Homewise Albuquerque Down Payment Assistance
Type:
Forgivable Loan
Amount:
Varies by program; Homewise advisors connect buyers with all DPA programs they qualify for
First-time only:
No
Sawmill Community Land Trust Homeownership Program
Type:
Forgivable Loan
Amount:
Permanently affordable home purchase via 99-year ground lease; reduces purchase price by separating land from improvements
First-time only:
No
United South Broadway Corporation Homebuyer Program
Type:
Forgivable Loan
Amount:
Down payment assistance amount varies by funding source and project
First-time only:
No

How to Apply

Step 1: Check your eligibility. Most Housing NM programs require you to be a first-time homebuyer (no primary residence ownership in the past 3 years), have a credit score of at least 620, and meet the Bernalillo County income limits — approximately $91,565 for a 1-2 person household and $105,300 for a 3+ person household. The DownPaymentAdvantage grant and HomeNow program require income at or below 80% AMI.

Step 2: Complete homebuyer education. Free HUD-approved homebuyer counseling is available through Homewise (505-243-6566), United South Broadway Corporation, and the Greater Albuquerque Habitat for Humanity. Counseling is required for nearly every state and local DPA program.

Step 3: Connect with a Housing NM participating lender. Lenders are listed on the Housing New Mexico website and can determine which combination of FirstHome, FirstDown, HomeNow, FirstDown Plus, and DownPaymentAdvantage you qualify for.

Step 4: Get pre-approved. Your participating lender will issue a pre-approval that locks in your eligible programs and identifies your maximum purchase price, factoring in the Bernalillo County purchase price limits.

Step 5: Find a home that meets program guidelines. Working with a real estate agent familiar with the area, identify homes within your purchase price limits and program guidelines. If you are buying in a Bernalillo County targeted census tract, ask your lender about the Targeted Areas program for better rates and higher purchase price limits.

Step 6: Submit your full application. Your lender submits the full package to Housing NM. DPA funds are first-come, first-served — close as quickly as practical to lock in funding.

Step 7: Close on your home. Bring your $500 minimum buyer contribution and any remaining closing costs. After 10 years of owner-occupancy, your FirstDown and HomeNow second mortgages can be forgiven.

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