MFA stacking
MFA stacking in 2026 — how FirstHome, FirstDown, and FirstDown Plus combine for up to $35K in New Mexico
Housing New Mexico (the state's Mortgage Finance Authority) lets qualifying first-time buyers layer its own programs on one purchase. Done right, the layers cover most of a down payment. But the internet is full of three-year-old descriptions of this stack — including the $25,000 grant that no longer exists. Here is the 2026 version, from the current MFA fact sheets. (Full disclosure up front: these programs close only through MFA-approved lenders, and Cornerstone First Mortgage is not one — this guide exists so you know the whole market.)
How the 2026 layers actually work
FirstHome is the first mortgage — a 30-year fixed at program pricing that pairs with FHA, VA, USDA, HUD Section 184, or conventional loans. First-time buyers (no ownership and occupancy of a primary residence in 3 years), 620 minimum score, homebuyer education required, income and purchase-price limits by county.
FirstDown is the main DPA layer: $1,000 up to 4% of the sales price for down payment and closing costs. It is a fixed-rate amortizing second mortgage — you make a monthly payment on it over 10, 15, or 30 years. Many websites call FirstDown a forgivable or zero-payment second; that is wrong. The forgivable program is HomeNow.
FirstDown Plus is the top layer: a flat $10,000 third mortgage at 0% interest, repaid at about $55.56 a month over 15 years, usable toward the down payment only. It requires FirstDown or HomeNow underneath, combined MFA assistance cannot exceed $35,000, and the fund is first-come, first-served.
HomeNow is the income-limited alternative: $7,000 at 0% with no monthly payment, forgiven after 10 full years of owner-occupancy, for households at or below 80% of area median income — subject to available program funding.
Albuquerque $300K FHA scenario
| Item | No assistance | With MFA layers |
|---|---|---|
| Purchase price | $300,000 | $300,000 |
| FHA down payment (3.5%) | $10,500 cash | $10,000 FirstDown Plus + $500 FirstDown |
| Closing costs (est. $6,000-$8,000) | Cash | Up to $11,500 remaining FirstDown capacity |
| New monthly obligations from DPA | None | FirstDown payment + $55.56 FirstDown Plus |
| Cash to close (approx.) | ~$17,000-$19,000 | Often prepaids + reserves only |
The tradeoff is honest and simple: less cash at closing, two small monthly payments added to the housing budget. We run both versions of the math for every file — sometimes skipping a layer is the better deal.
Eligibility specifics
- First-time homebuyer for the First-family programs (no ownership + occupancy in past 3 years); HomeForward serves repeat buyers.
- Income limits by county and household size — e.g., $101,254 / $116,443 (1-2 / 3+ persons) in the Albuquerque metro, effective July 27, 2026.
- Purchase price within MFA limits: $566,354 most counties; $595,612 Santa Fe County; $724,361 Los Alamos County (effective July 27, 2026).
- 620 minimum credit score across FirstHome, FirstDown, FirstDown Plus, and HomeNow.
- Owner-occupied primary residence, single-family (site-built, condo, townhome, or qualifying manufactured home on a permanent foundation).
- Pre-purchase homebuyer education through eHome America or a HUD-approved agency.
Common questions
Do the MFA programs stack in New Mexico?
Yes, within Housing New Mexico's own family. FirstHome (the first mortgage) pairs with FirstDown (up to 4% of the sales price), and FirstDown Plus adds a $10,000 third mortgage on top of FirstDown or HomeNow. Combined MFA assistance is capped at $35,000 per transaction. MFA assistance does not combine with separate national DPA programs like Chenoa or Arrive Home.
Is the $25,000 DPAdvantage grant still available?
No. Housing New Mexico's Down Payment Advantage grant committed all funds on April 26, 2023 and stopped taking reservations. It is not part of the 2026 lineup. Sites still advertising it are years out of date.
Do I have to make payments on the assistance?
On most of it, yes. FirstDown is a fixed-rate second mortgage with monthly, fully amortizing payments over 10, 15, or 30 years. FirstDown Plus costs about $55.56 a month for 15 years at 0% interest. Only HomeNow ($7,000, for buyers at or below 80% of area median income) has no payment and is forgiven after 10 full years of owner-occupancy.
Are the MFA programs statewide?
Yes — Albuquerque, Santa Fe, Las Cruces, Rio Rancho, Farmington, and every other New Mexico community. Income and purchase-price limits vary by county, with higher limits in Santa Fe and Los Alamos counties and in targeted areas.
What credit score do I need?
620 for FirstHome, FirstDown, FirstDown Plus, and HomeNow. Borrowers without a credit score can qualify using alternative credit history. Pre-purchase homebuyer education is required.
Does tribal land qualify?
It can. FirstHome accepts HUD Section 184 first mortgages — the federal loan program designed for tribal trust land — alongside FHA, VA, USDA, and conventional loans.
How Mike + Cornerstone help
I'm licensed in New Mexico, and here is the straight version: MFA loans close only through lenders approved by Housing New Mexico, and Cornerstone First Mortgage is not an MFA participating lender. What we originate directly is the national DPA family — Chenoa Fund, Arrive Home, Essex/NHF — plus FHA, VA, USDA, conventional, and jumbo. We run the MFA math alongside those options anyway and tell you which path actually costs least, even when the answer is an MFA lender instead of us.
Talk to Mike first Get pre-approved
No pressure, no commitment. Free 20-minute consult. Mike will look at your scenario and tell you straight whether this works for you.