Housing New Mexico outlines first-time mortgage and down-payment programs, reports $555M in FY2025 mortgages

Rene Acuna, director of homeownership at Housing New Mexico, told the oversight committee that the agency originated $555,000,000 in total first mortgages in fiscal 2025 and assisted 2,286 households.

Acuna said the office administers two primary mortgage products: First Home, a first-time homebuyer mortgage for people who have not owned and occupied a principal residence in the past three years, and Home Forward, which is open to repeat buyers and other borrowers who do not meet First Home's requirements. "This program is predominantly funded by tax-exempt mortgage revenue bonds," Acuna said, noting those bonds carry IRS rules that impose unique requirements on underwriting and program eligibility.

Down-payment assistance options include First Down, funded primarily from the agency's general fund and restricted to First Home borrowers, which can provide up to 4% of a home's sales price toward down payment and closing costs. Acuna described First Down Plus as an optional third mortgage for eligible first-time buyers that provides $10,000 at 0% interest repaid over 15 years (about $55 per month) and whose repayments are recycled into the program.

Acuna also reviewed HomeNow, a down-payment program funded by a Capital Magnet Fund grant that carried a 0% interest rate forgiven after 10 years; he said those grant funds have been exhausted and new loans depend on repayments. He added that Home Forward second-mortgage assistance for non-first-time buyers offers 10- or 15-year fixed terms and up to 3% assistance, funded by the New Mexico Housing Trust.

On borrower profiles, Acuna said average sale price across programs was $256,000; average down-payment assistance was $7,200 (not counting the optional $10,000); average household income was $74,000; average borrower age 34.3; 62% of buyers were minority and 42.2% of households were female-headed.

Acuna described outreach efforts to connect borrowers with lenders and community partners: "We employ two outreach specialists," he said, and the agency advertises through industry partners and online platforms. He said the agency measures reach by comparing FHA purchase transactions in public records and reported that 34% of FHA purchase-money transactions closed in the year came through Housing New Mexico's single-family programs.

Committee members asked several clarifying questions. The Chair sought confirmation whether "occupied" versus "owned" affected First Home eligibility; Acuna answered that under the IRS rules a person who owned but did not occupy a property within three years and can document three years of rental may still qualify as a first-time buyer. The presentation concluded with no formal vote or motion.

Next steps: staff said they will continue lender outreach and public awareness efforts and suggested program refinements as market conditions change.