See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated May 7, 2026
Homebuyer Programs in South Valley, NM (2026)
South Valley is a Census Designated Place (CDP) and unincorporated community in Bernalillo County, immediately south of Albuquerque, with a population near 37,120 and a median home price of approximately $235,000. Because South Valley is unincorporated, buyers here qualify for the Bernalillo County Down Payment Assistance program — an additional $20,000 in DPA that is NOT available to buyers in incorporated cities like Albuquerque or Rio Rancho. Stacked with up to $35,000 from Housing New Mexico (FirstDown $8,000, HomeNow up to $7,000 temporarily $14,000 through April 1, 2026, FirstDown Plus $10,000, and the $25,000 DownPaymentAdvantage grant), eligible South Valley buyers can access a substantially deeper assistance package than their counterparts inside Albuquerque. Greater Albuquerque Habitat for Humanity also serves Bernalillo County and provides a 0% interest sweat-equity homeownership pathway for qualified families.
County Programs in Bernalillo County (Unincorporated)
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Bernalillo County Down Payment Assistance (Unincorporated Areas) | Deferred Loan | $20,000 in additional down payment assistance for buyers in unincorporated Bernalillo County | Yes | View → |
- Type:
- Deferred Loan
- Amount:
- $20,000 in additional down payment assistance for buyers in unincorporated Bernalillo County
- First-time only:
- Yes
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 |
|---|---|---|---|---|
| Greater Albuquerque Habitat for Humanity Homeownership Program | Zero-Interest Loan | Affordable home with 0% interest mortgage; monthly payment generally around 30% of household gross monthly income | Yes | View → |
- 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
How to Apply
Step 1: Confirm your property is in unincorporated Bernalillo County. The Bernalillo County DPA program is only available for homes outside Albuquerque, Rio Rancho, and other incorporated city limits. South Valley addresses generally qualify, but always verify with the Bernalillo County Housing Department at (505) 314-0200 before applying.
Step 2: Check your eligibility for state programs. Most Housing NM programs require first-time homebuyer status, a 620+ credit score, and meeting Bernalillo County income limits — approximately $91,565 for a 1-2 person household and $105,300 for a 3+ person household. DownPaymentAdvantage and HomeNow require income at or below 80% AMI.
Step 3: Complete homebuyer education. Free HUD-approved counseling is available through United South Broadway Corporation, Homewise (505-243-6566), and Greater Albuquerque Habitat for Humanity (505-265-0057). Counseling is required by the County DPA, state programs, and most nonprofits.
Step 4: Connect with a Housing NM participating lender. Your lender will determine which combination of FirstHome, FirstDown, HomeNow, FirstDown Plus, and DownPaymentAdvantage you qualify for. Tell the lender you intend to apply for the additional $20,000 Bernalillo County DPA so they can structure the closing accordingly.
Step 5: Apply for the Bernalillo County Down Payment Assistance program. Contact the County Housing Department directly at (505) 314-0200 to obtain the application packet. The County program runs alongside the state programs and adds an additional layer of assistance.
Step 6: Get pre-approved and find a home that meets program guidelines. Confirm with your real estate agent that any home you make an offer on is located in unincorporated Bernalillo County so the $20,000 county DPA remains available.
Step 7: Close on your home. Bring your $500 minimum buyer contribution (Housing NM requirement) and any remaining closing costs. After 10 years of owner-occupancy, your FirstDown and HomeNow second mortgages can be forgiven; County DPA terms apply per the County program agreement.