Buying a home in New Mexico: the help you may qualify for.
Down payment assistance, property tax exemptions and veteran benefits in New Mexico, gathered from official state sources and explained in plain English. Every program has its own rules, so check with the agency before you count on it.
Down payment and closing cost help
From the Housing New Mexico (MFA).
HomeNow
$7,000
0% second loan, with Housing New Mexico's FirstHome program, for lower-income buyers.
FirstDown
Up to 4% of the price
Down payment and closing cost help with an MFA first mortgage.
FirstDown Plus
$15,000
A 0% 10-year third loan. Combined MFA assistance can't exceed $35,000.
Who qualifies: Income and price limits, through an MFA participating lender.
Property tax exemptions and credits
Exemptions lower your home’s taxable value or your bill. Most aren’t automatic: you apply with your county assessor. New Mexico’s official exemptions information.
For homeowners who live in the home
Head of household exemption
$2,000 off taxable value
For a New Mexico resident who heads a household; you don't need dependents.
How to apply: With your county assessor. (New Mexico Taxation and Revenue)
For homeowners 65 and older
Valuation freeze (65+ or disabled)
Freezes your home's value
For homeowners 65 or older or disabled, with income under the yearly limit ($42,900 or more).
How to apply: With your county assessor each year. (New Mexico Taxation and Revenue)
For veterans
Veteran exemption
$4,000 off taxable value
For New Mexico resident veterans and unremarried surviving spouses. Lawmakers have proposed raising it, so ask your assessor for the current amount.
How to apply: With your county assessor. (New Mexico Department of Veterans Services)
Disabled veteran exemption
A full exemption at a 100% rating
For veterans with a service-connected disability on their principal residence.
How to apply: With your county assessor. (New Mexico Department of Veterans Services)
Want to see which ones fit you? Answer a few questions in the property tax exemptions checker.
If you serve or served
- VA home loan: available in every state, often with no down payment and no monthly mortgage insurance. You’ll need a Certificate of Eligibility. See VA home loans.
- Property tax: veterans in New Mexico may qualify for Veteran exemption, Disabled veteran exemption. See the details above.
Your next steps
- Work out a monthly cost you’re comfortable with in the home cost calculator. It also lists New Mexico’s programs with the loans you may qualify for.
- Talk with a free or low-cost HUD-approved housing counselor. Find one near you.
- Ask each lender which of these programs they work with, and compare Loan Estimates from at least three.
- Follow the step-by-step home buyer’s guide from budget to keys.
Common questions
Does New Mexico have down payment help for home buyers?
Yes. Programs from Housing New Mexico (MFA) include HomeNow, FirstDown, FirstDown Plus. Income and price limits, through an MFA participating lender. Funding and rules change often, so check with the agency or a participating lender.
Does New Mexico have a homestead or property tax exemption for homeowners?
Yes. Homeowners who live in the home may qualify for: Head of household exemption. Apply with your county assessor; most exemptions aren't automatic.
Is there help for veterans buying a home in New Mexico?
VA home loans are available in every state, often with no down payment. Veterans may also qualify for property tax benefits such as Veteran exemption, Disabled veteran exemption.
Sources: Housing New Mexico (MFA) and New Mexico’s property tax office, linked above. Last checked November 11, 2026. Programs, amounts, income limits and funding change often, sometimes every year. Know Before You Own doesn’t recommend lenders or take referral fees. This page is general education, not legal, tax or lending advice. See other states.