See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated May 7, 2026
Homebuyer Programs in Hobbs, NM (2026)
Hobbs is the largest city in Lea County in southeastern New Mexico, with a median home price of approximately $265,000. While the City of Hobbs does not directly run a homebuyer down payment assistance program, it funds Lea County Housing, Inc. (LCHI) to provide first-time homebuyer education and connect graduates to Housing New Mexico (MFA) down payment grants of up to $8,000 plus the broader MFA stack. Combined Housing NM assistance can total up to $35,000 (FirstDown up to $8,000, HomeNow up to $7,000 temporarily $14,000 through April 1, 2026, FirstDown Plus $10,000, and the $25,000 DownPaymentAdvantage grant). Habitat for Humanity of Hobbs offers an additional pathway through 0% interest sweat-equity mortgages, having helped place 38+ families into homes since its founding.
State Programs in New Mexico
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Housing NM DownPaymentAdvantage Grant | Grant | $25,000 | Yes | View → |
| Housing NM FirstDown Plus Program | Zero-Interest Loan | $10,000 | Yes | View → |
| Housing NM FirstDown Program | Forgivable Loan | Up to $8,000 (capped at 8% of purchase price) | Yes | View → |
| Housing NM FirstHome Program | Repayable Loan | First mortgage financing at competitive rates | Yes | View → |
| Housing NM HomeNow Program | Forgivable Loan | Up to $7,000 (temporarily $14,000 through April 1, 2026 or until funding exhausted) | Yes | View → |
| Housing NM NextHome Program | Repayable Loan | First mortgage with built-in down payment assistance second loan | No | View → |
| Housing NM Targeted Areas Program | Repayable Loan | Lower mortgage rates, higher purchase price limits, plus down payment assistance | No | View → |
- Type:
- Grant
- Amount:
- $25,000
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- Amount:
- $10,000
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $8,000 (capped at 8% of purchase price)
- First-time only:
- Yes
- Type:
- Repayable Loan
- Amount:
- First mortgage financing at competitive rates
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $7,000 (temporarily $14,000 through April 1, 2026 or until funding exhausted)
- First-time only:
- Yes
- Type:
- Repayable Loan
- Amount:
- First mortgage with built-in down payment assistance second loan
- First-time only:
- No
- Type:
- Repayable Loan
- Amount:
- Lower mortgage rates, higher purchase price limits, plus down payment assistance
- First-time only:
- No
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- 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
- Type:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- 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
- 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
- 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
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- 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
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Habitat for Humanity of Hobbs Homeownership Program | Zero-Interest Loan | Affordable home with 0% interest mortgage; sold to qualified families at no profit | Yes | View → |
| Lea County Housing, Inc. Homebuyer Education and DPA Linkage Program | Forgivable Loan | Up to $8,000 in MFA down payment and closing cost assistance after completion of LCHI's first-time homebuyer education class | Yes | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Affordable home with 0% interest mortgage; sold to qualified families at no profit
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $8,000 in MFA down payment and closing cost assistance after completion of LCHI's first-time homebuyer education class
- First-time only:
- Yes
How to Apply
Step 1: Check your eligibility. Most Housing NM programs require first-time homebuyer status (no primary residence ownership in the past 3 years), a 620+ credit score, and meeting Lea County income limits. DownPaymentAdvantage and HomeNow require income at or below 80% AMI.
Step 2: Complete homebuyer education through Lea County Housing, Inc. LCHI's first-time homebuyer education class is funded by the City of Hobbs and serves as the gateway to MFA down payment grants for income-qualified Hobbs buyers. Graduates of the class can then apply for MFA assistance.
Step 3: Connect with a Housing NM participating lender. Local Hobbs lenders participate in the Housing New Mexico programs. They can determine which combination of FirstHome, FirstDown, HomeNow, FirstDown Plus, and DownPaymentAdvantage you qualify for.
Step 4: Get pre-approved. Your participating lender will lock in your eligible programs and confirm your maximum purchase price under the Lea County limits.
Step 5: Find a home that meets program guidelines. Work with a Hobbs-area real estate agent. Confirm purchase price limits and program rules with your lender before making an offer.
Step 6: Submit your application. Your lender packages and submits the application 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.