Zero Interest Homebuilder Program
Zero Interest Homebuilder Program supports builders and developers with interest-free financing for single-family homes and on-site infrastructure to expand affordable entry-level housing in New Mexico.
Funder: New Mexico Mortgage Finance Authority
Due Dates: Board consideration: complete applications due at least 60 days before the meeting
Funding Amounts: Interest-free loans up to $3,000,000; infrastructure terms up to five years, construction credit up to three years
Summary: Supports affordable single-family home construction and infrastructure in New Mexico through interest-free financing for entry-level housing.
Key Information: Financed homes must meet size, design, buyer-income, and sales-price requirements, with at least five years of affordability compliance.
Description
The Zero Interest Homebuilder Program is a loan product administered by the New Mexico Mortgage Finance Authority, doing business as Housing New Mexico. Through the New Mexico Housing Trust Fund, it provides interest-free construction financing to address the shortage of affordable, practical housing for low- and moderate-income homebuyers in New Mexico. The program promotes entry-level, economical homes priced appropriately for their local markets.
Financing supports single-family development and construction, including on-site infrastructure needed for affordable residential lots. The program emphasizes cost-effective floor plans, amenities, and materials that balance affordability with functionality, alongside Housing New Mexico’s Universal Single-Family Design Standards. Land use restriction agreements extend affordability protections beyond construction and initial sale.
