2025 FHA Loan Limits in New Mexico

Written by Allie Johnson

Edited by Brianna McGurran

Updated on:

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If you’re house hunting in New Mexico, you may want to learn about FHA loans, which are mortgages backed by the Federal Housing Administration (FHA). These loans offer a path to homeownership for first-time homebuyers and others who have lower credit scores or lack the cash for a big down payment.

The amount you can borrow is restricted by FHA loan limits in New Mexico, which range from $524,225 to $692,300 for single-family homes depending on the county. Read on to learn about how to qualify for an FHA loan in New Mexico.

New Mexico FHA loan limits by county

County name	One unit	Two units	Three units	Four units	Median sales price
BERNALILLO	$524,225	$671,200	$811,275	$1,008,300	$356,000
CATRON	$524,225	$671,200	$811,275	$1,008,300	$230,000
CHAVES	$524,225	$671,200	$811,275	$1,008,300	$220,000
CIBOLA	$524,225	$671,200	$811,275	$1,008,300	$183,000
COLFAX	$524,225	$671,200	$811,275	$1,008,300	$285,000
CURRY	$524,225	$671,200	$811,275	$1,008,300	$219,000
DE BACA	$524,225	$671,200	$811,275	$1,008,300	$96,000
DONA ANA	$524,225	$671,200	$811,275	$1,008,300	$296,000
EDDY	$524,225	$671,200	$811,275	$1,008,300	$283,000
GRANT	$524,225	$671,200	$811,275	$1,008,300	$205,000
GUADALUPE	$524,225	$671,200	$811,275	$1,008,300	$205,000
HARDING	$524,225	$671,200	$811,275	$1,008,300	$250,000
HIDALGO	$524,225	$671,200	$811,275	$1,008,300	$136,000
LEA	$524,225	$671,200	$811,275	$1,008,300	$60,000
LINCOLN	$524,225	$671,200	$811,275	$1,008,300	$316,000
LOS ALAMOS	$692,300	$886,250	$1,071,300	$1,331,350	$602,000
LUNA	$524,225	$671,200	$811,275	$1,008,300	$174,000
MCKINLEY	$524,225	$671,200	$811,275	$1,008,300	$75,000
MORA	$524,225	$671,200	$811,275	$1,008,300	$200,000
OTERO	$524,225	$671,200	$811,275	$1,008,300	$221,000
QUAY	$524,225	$671,200	$811,275	$1,008,300	$161,000
RIO ARRIBA	$524,225	$671,200	$811,275	$1,008,300	$299,000
ROOSEVELT	$524,225	$671,200	$811,275	$1,008,300	$180,000
SAN JUAN	$524,225	$671,200	$811,275	$1,008,300	$275,000
SAN MIGUEL	$524,225	$671,200	$811,275	$1,008,300	$200,000
SANDOVAL	$524,225	$671,200	$811,275	$1,008,300	$356,000
SANTA FE	$541,650	$693,400	$838,150	$1,041,650	$469,000
SIERRA	$524,225	$671,200	$811,275	$1,008,300	$183,000
SOCORRO	$524,225	$671,200	$811,275	$1,008,300	$191,000
TAOS	$524,225	$671,200	$811,275	$1,008,300	$407,000
TORRANCE	$524,225	$671,200	$811,275	$1,008,300	$356,000
UNION	$524,225	$671,200	$811,275	$1,008,300	$169,000
VALENCIA	$524,225	$671,200	$811,275	$1,008,300	$356,000

How are FHA loan limits determined?

Every year, the FHA sets loan limits, which vary by state and county and median home prices in different areas. These loan limits must fall between “floor” and “ceiling” amounts. For a home with one unit, the FHA sets the “floor” for a low-cost area at 65% of the national conforming loan limit (currently $806,500), and the “ceiling” for a high-cost area at 150% of the national conforming loan limit.

The 2025 FHA loan limits for a single-family home range from a “floor” of $524,225 in a low-cost area to a “ceiling” of $1,209,750 in a high-cost area. The limits for multifamily homes range from a “floor” of $671,200 for a two-unit property in a low-cost area to a “ceiling” of $1,814,624 for a four-unit property in a high-cost area. The “ceiling” amounts can go even higher in Alaska, Hawaii, Guam and the U.S. Virgin Islands due to especially high construction costs in those areas.

How to qualify for an FHA loan in New Mexico

It’s generally easier to qualify for an FHA loan than for a conventional mortgage loan. However, a homebuyer must meet FHA loan requirements relating to credit score, income and down payment amount to qualify for an FHA loan in New Mexico. To have a good shot at getting approved for an FHA loan, an applicant must:

Have a minimum 500 to 580 credit score. The credit score needed to buy a house with an FHA loan in New Mexico is 500 with a 10% down payment or 580 with a 3.5% down payment.
Make at least a 3.5% down payment. You can buy a home in New Mexico using an FHA loan with a down payment of as little as 3.5%. You’ll need to put down 10% if your credit score is below 580.
Have a steady source of income. Though there is no specific income requirement to get an FHA loan, you must be able to show a steady job or other reliable income source, such as self-employment, for at least two years.
Get an appraisal done. All FHA loans require an appraisal to ensure that the property is “safe, sound and secure.” The appraiser will look for “defective conditions” such as decay, termites or excessive dampness, and make sure those can be corrected so the loan can go through. The market value of the property also must be high enough to secure the loan.
Have a maximum 43% debt-to-income (DTI) ratio. You typically must have a DTI ratio of 43% or less to qualify for an FHA loan. However, exceptions may be made for up to 50% DTI if you have a credit score of 580 or higher plus mitigating factors such as cash reserves and additional income.
Commit to moving into the home. To qualify for an FHA loan, you must agree to move into the property within 60 days and plan to live there as your main residence for at least one year.
Pay mortgage insurance. All FHA loans require borrowers to pay FHA mortgage insurance. You must pay both an upfront mortgage insurance premium (UFMIP) of 1.75% of the loan plus a monthly mortgage insurance premium (MIP) that varies based on your loan-to-value (LTV) ratio, loan amount and mortgage term.

The loan amount you’re seeking also must fall within the New Mexico FHA loan limits for the county where you’re planning to buy a home.

Buying a multifamily property with an FHA loan

You can also use an FHA loan to buy a multifamily home (with two to four units) with as little as 3.5% down. This can be a smart way to cover your own housing costs through house hacking, a strategy in which you live in one unit and rent out the others. This strategy allows you to save money while building equity in a property over time. To qualify, you must meet these FHA loan multifamily property requirements:

Minimum credit score of 580 (for 3.5% down) or 500 (for 10% down).
Complete an FHA appraisal so the lender can spot issues and determine market value.
Live in one of the units as your primary residence for at least a year. You can rent the other units on a long-term basis (30 days or more) but you can’t operate a vacation rental, inn or bed and breakfast.
Have mortgage cash reserves that cover two mortgage payments for a two-unit property or three mortgage payments for a three- or four-unit property.
Show proof of employment or other steady income for the past two years.
Pay both upfront mortgage insurance and a monthly mortgage insurance premium based on the LTV ratio, loan amount and mortgage term.
Have a debt-to-income ratio of 43% or lower, or slightly higher depending on your credit score and other factors.

Number of units	Low-cost FHA loan limit
Two	$671,200
Three	$811,275
Four	$1,008,300

FHA lenders in New Mexico

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