FHA Loan Limits in New Mexico
Home loans backed by the Federal Housing Administration (FHA) are attractive to homebuyers with less-than-stellar credit and limited cash for a down payment, but they come with limits that vary by county and property type. All counties in New Mexico currently have an FHA loan limit of $472,030 for a single-family home.
New Mexico FHA loan limits by county
| County name | One unit | Two units | Three units | Four units | Median sale price |
|---|---|---|---|---|---|
| BERNALILLO | $472,030 | $604,400 | $730,525 | $907,900 | $329,000 |
| CATRON | $472,030 | $604,400 | $730,525 | $907,900 | $188,000 |
| CHAVES | $472,030 | $604,400 | $730,525 | $907,900 | $193,000 |
| CIBOLA | $472,030 | $604,400 | $730,525 | $907,900 | $156,000 |
| COLFAX | $472,030 | $604,400 | $730,525 | $907,900 | $337,000 |
| CURRY | $472,030 | $604,400 | $730,525 | $907,900 | $211,000 |
| DE BACA | $472,030 | $604,400 | $730,525 | $907,900 | $105,000 |
| DONA ANA | $472,030 | $604,400 | $730,525 | $907,900 | $269,000 |
| EDDY | $472,030 | $604,400 | $730,525 | $907,900 | $258,000 |
| GRANT | $472,030 | $604,400 | $730,525 | $907,900 | $168,000 |
| GUADALUPE | $472,030 | $604,400 | $730,525 | $907,900 | $155,000 |
| HARDING | $472,030 | $604,400 | $730,525 | $907,900 | $87,000 |
| HIDALGO | $472,030 | $604,400 | $730,525 | $907,900 | $121,000 |
| LEA | $472,030 | $604,400 | $730,525 | $907,900 | $70,000 |
| LINCOLN | $472,030 | $604,400 | $730,525 | $907,900 | $313,000 |
| LOS ALAMOS | $583,050 | $746,400 | $902,250 | $1,121,250 | $507,000 |
| LUNA | $472,030 | $604,400 | $730,525 | $907,900 | $156,000 |
| MCKINLEY | $472,030 | $604,400 | $730,525 | $907,900 | $105,000 |
| MORA | $472,030 | $604,400 | $730,525 | $907,900 | $183,000 |
| OTERO | $472,030 | $604,400 | $730,525 | $907,900 | $205,000 |
| QUAY | $472,030 | $604,400 | $730,525 | $907,900 | $124,000 |
| RIO ARRIBA | $472,030 | $604,400 | $730,525 | $907,900 | $261,000 |
| ROOSEVELT | $472,030 | $604,400 | $730,525 | $907,900 | $179,000 |
| SAN JUAN | $472,030 | $604,400 | $730,525 | $907,900 | $234,000 |
| SAN MIGUEL | $472,030 | $604,400 | $730,525 | $907,900 | $183,000 |
| SANDOVAL | $472,030 | $604,400 | $730,525 | $907,900 | $329,000 |
| SANTA FE | $503,700 | $644,800 | $779,450 | $968,650 | $438,000 |
| SIERRA | $472,030 | $604,400 | $730,525 | $907,900 | $160,000 |
| SOCORRO | $472,030 | $604,400 | $730,525 | $907,900 | $185,000 |
| TAOS | $472,030 | $604,400 | $730,525 | $907,900 | $394,000 |
| TORRANCE | $472,030 | $604,400 | $730,525 | $907,900 | $329,000 |
| UNION | $472,030 | $604,400 | $730,525 | $907,900 | $124,000 |
| VALENCIA | $472,030 | $604,400 | $730,525 | $907,900 | $329,000 |
How are FHA loan limits determined?
Every year, FHA loan limits are determined by looking at the median home sales price from the year before, along with the limits on conventional mortgages. These limits are also known as the conforming loan limits established by the Federal Housing Finance Agency (FHFA). The loan limits have gone up a little over 12% from last year because, on average, the price of homes across the country went up over the last year.
The U.S. Department of Housing and Urban Development (HUD) uses the conforming loan limit to determine the lending limit for FHA loans. The lowest limit — also called the “floor” — for FHA loans is 65% of the conforming loan limit, or $472,030. The highest limit — known as the “ceiling” — is 150% of the conforming loan limit, or $1,089,300. It only applies to higher-cost-of-living areas.
The type of property in each area can also impact the loan limits for an FHA loan. A single-family home will have lower lending limits than a multifamily home.
How to qualify for an FHA loan in New Mexico
A homebuyer in New Mexico who doesn’t have a high credit score and can’t afford a big down payment might consider an FHA loan to help. Keep in mind, homebuyers will still need to meet FHA loan requirements:
A minimum 500 credit score. If you have a credit score between 500 and 579, you may qualify for an FHA loan but need at least a 10% down payment.
3.5% minimum down payment. You may be eligible for a down payment of 3.5% if you have a credit score of 580 or higher. Otherwise, expect to make that full 10% down payment.
Debt-to-income (DTI) ratio of 43% or less. A DTI ratio is the amount of money you spend on debt payments compared to your total monthly income. Your DTI ratio will likely need to be 43% (or less) of your gross income to qualify.
An FHA home appraisal. The property you’re looking to purchase must have an FHA appraisal and be approved.
Mortgage insurance. Two types of FHA mortgage insurance are required. You will need to pay for an upfront mortgage insurance premium (UFMIP), which is 1.75% of the loan, and an annual mortgage insurance premium (MIP), which can be anywhere from 0.15% to 0.75%.
Primary residence. You must live in this property as your main residence for at least one year.
Buying a multifamily property with an FHA loan
While FHA loans can help a homebuyer purchase a single-family home, these loans may also be a good option for those looking to purchase a multifamily home. You can still utilize the 3.5% down payment if your credit score is at least 580, but it’s important to note that you’ll need to live in one of the units for at least a year.
Another advantage of using an FHA loan to buy a multifamily property is that you can use future rental income to qualify for the mortgage. This can significantly bump up your income and, therefore, how much you can get from a lender.
The FHA loan limits for two- to four-unit purchases in New Mexico are:
- $604,400 for two units
- $730,525 for three units
- $907,900 for four units
FHA lenders in New Mexico
| Lender name | LT rating | Minimum FHA credit score |
|---|---|---|
| BMO Harris Bank | 4 stars | 580 |
| Rocket Mortgage | 5 stars | 580 |
| Mr. Cooper | 4.5 stars | Not disclosed |
| Flagstar Bank | 5 stars | 580 |
| AmeriSave | 3.5 stars | 600 |