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2022 FHA Loan Limits in New Mexico
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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. Most counties in New Mexico currently have an FHA loan limit of $420,680 for a single-family home. Santa Fe, however, has a higher loan limit of $468,050 for a single-family home in 2022.
New Mexico FHA loan limits by county
| County name | One unit | Two units | Three units | Four units | Median sales price |
|---|---|---|---|---|---|
| BERNALILLO | $420,680 | $538,650 | $651,050 | $809,150 | $279,000 |
| CATRON | $420,680 | $538,650 | $651,050 | $809,150 | $150,000 |
| CHAVES | $420,680 | $538,650 | $651,050 | $809,150 | $189,000 |
| CIBOLA | $420,680 | $538,650 | $651,050 | $809,150 | $151,000 |
| COLFAX | $420,680 | $538,650 | $651,050 | $809,150 | $347,000 |
| CURRY | $420,680 | $538,650 | $651,050 | $809,150 | $196,000 |
| DE BACA | $420,680 | $538,650 | $651,050 | $809,150 | $132,000 |
| DONA ANA | $420,680 | $538,650 | $651,050 | $809,150 | $229,000 |
| EDDY | $420,680 | $538,650 | $651,050 | $809,150 | $239,000 |
| GRANT | $420,680 | $538,650 | $651,050 | $809,150 | $152,000 |
| GUADALUPE | $420,680 | $538,650 | $651,050 | $809,150 | $157,000 |
| HARDING | $420,680 | $538,650 | $651,050 | $809,150 | $90,000 |
| HIDALGO | $420,680 | $538,650 | $651,050 | $809,150 | $105,000 |
| LEA | $420,680 | $538,650 | $651,050 | $809,150 | $165,000 |
| LINCOLN | $420,680 | $538,650 | $651,050 | $809,150 | $305,000 |
| LOS ALAMOS | $530,150 | $678,700 | $820,350 | $1,019,550 | $461,000 |
| LUNA | $420,680 | $538,650 | $651,050 | $809,150 | $158,000 |
| MCKINLEY | $420,680 | $538,650 | $651,050 | $809,150 | $65,000 |
| MORA | $420,680 | $538,650 | $651,050 | $809,150 | $164,000 |
| OTERO | $420,680 | $538,650 | $651,050 | $809,150 | $195,000 |
| QUAY | $420,680 | $538,650 | $651,050 | $809,150 | $99,000 |
| RIO ARRIBA | $420,680 | $538,650 | $651,050 | $809,150 | $249,000 |
| ROOSEVELT | $420,680 | $538,650 | $651,050 | $809,150 | $173,000 |
| SAN JUAN | $420,680 | $538,650 | $651,050 | $809,150 | $209,000 |
| SAN MIGUEL | $420,680 | $538,650 | $651,050 | $809,150 | $164,000 |
| SANDOVAL | $420,680 | $538,650 | $651,050 | $809,150 | $279,000 |
| SANTA FE | $468,050 | $599,200 | $724,250 | $900,100 | $407,000 |
| SIERRA | $420,680 | $538,650 | $651,050 | $809,150 | $131,000 |
| SOCORRO | $420,680 | $538,650 | $651,050 | $809,150 | $159,000 |
| TAOS | $423,200 | $541,750 | $654,850 | $813,850 | $368,000 |
| TORRANCE | $420,680 | $538,650 | $651,050 | $809,150 | $279,000 |
| UNION | $420,680 | $538,650 | $651,050 | $809,150 | $109,000 |
| VALENCIA | $420,680 | $538,650 | $651,050 | $809,150 | $279,000 |
How are FHA loan limits determined?
Every year FHA loan limits are determined by looking at the average home sales price from the year before along with the limits on conventional mortgages — which are also known as conforming loan limits. The loan limit has gone up 18% this year because the average national price of home sales were up in 2021.
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 $420,680. The highest limit — known as the “ceiling”— is 150% of the conforming loan limit and 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. Typically, 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. Any first-time buyers in New Mexico may also qualify for New Mexico’s first-time homebuyer programs.
Keep in mind, homebuyers will still need to meet all FHA loan requirements.
- A minimum 500 credit score. If you have a credit score between 500 to 579, you may qualify for an FHA loan but you will need at least a 10% down payment.
- 3.5% minimum down payment. You may be able to qualify for a down payment of 3.5% if you have a credit score of 580 or higher. Check your credit score here.
- 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 in order 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 0.45% to 1.05%.
- 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 as well. You can still utilize the 3.5% down payment if your credit score is at least 580 but it is important to note that you will need to live in one of the units for up to a year.
FHA lenders in New Mexico
Explore these five highly-rated lenders licensed in New Mexico below.
| Lender name | LT rating | Minimum FHA credit score |
|---|---|---|
| BMO Harris Bank | 8.5/10 | 580 |
| Rocket Mortgage | 9.5/10 | 580 |
| PennyMac | 9/10 | 620 |
| Flagstar Bank | 8/10 | Not disclosed |
| AmeriSave | 8/10 | 600 |