Inventory in Las Cruces ticked up to 360 active listings in March 2024, but that’s still 38 % below pre-pandemic norms. Entry-level homes under $250K move in 9 days, while properties above $400K linger 45-60 days—creating negotiation room in Picacho Hills and the Sonoma Ranch golf corridor. Median sale price rose 4.1 % year-over-year to $265,000, yet the median list-to-sale ratio sits at 98 %, meaning aggressive offers still need local guidance.

Interest rates hovering near 6.75 % priced some buyers out, but monthly PITI on a median Las Cruces home remains $1,750—roughly $550 less than Albuquerque and $1,200 below Phoenix. With Doña Ana County projecting 1.2 % population growth annually, demand looks stable. Cash offers account for 18 % of transactions, down from 28 % last year, giving financed buyers room to compete—especially when they present NMHL’s fully-underwritten pre-approval letter accepted by every local listing agent.

New Mexico’s MFA FirstHome/FirstDown combo remains the gold standard: 30-year fixed rates typically 0.75 % below conventional, plus $8,000 deferred second. Combine it with Las Cruces’ HOME funds and you can walk in with 1 % out-of-pocket. MFA’s NextHome adds $6,000 for repeat buyers under $91K income, useful for NMSU staff upgrading from rental condos.

NMHL layers the Mortgage Credit Certificate (MCC) onto any MFA loan, converting 40 % of annual interest into a federal tax credit—worth about $2,400 yearly on a $250K note. We also waive our $1,295 underwriting fee for any Las Cruces teacher, firefighter, or law-enforcement officer through the Hometown Heroes program. Because MFA allocates money on the first business day each month, NMHL reserves your rate and locks your assistance slot so you don’t lose funds while house-hunting over weekends.

If your credit score sits below 620, NMHL’s Fresh-Start program allows 550 with compensating factors: 10 % down payment (gift allowed), two months of reserves, and no late housing payments in the past 12 months. The program is portfolio-held in Las Cruces, so underwriting decisions are made locally—often in 48 hours. Rates currently run 1.25 % above prime, but after 24 months of on-time payments we refinance you into a conventional loan at no cost.

Need the down payment? The New Mexico Collateral Assistance Program (CAP) pledges collateral on your behalf—effectively covering 50 % of your 10 % requirement. We also partner with Tia Rosa Community Development for $5,000 grants forgiven after five years of occupancy in census tracts 0017-0021 (covering parts of East Mesa and High Range). A 90-day rapid-repair plan drafted by our credit team helped 112 Las Cruces applicants raise scores 37 points on average last year, simply by paying down credit cards under 30 % utilization and removing outdated medical collections.

Between chile harvesting, craft breweries on Main Street, and Airbnb casitas in Mesilla, Las Cruces has a robust self-employed workforce—but often little taxable income after write-offs. NMHL’s 12- or 24-month bank-statement program lets you qualify with gross deposits minus a 50 % expense factor or your actual business expense ratio, whichever is better. Loan amounts reach $1.5M at 90 % LTV with a 680 score, or 80 % LTV with a 640 score.

We accept statements from up to four business or personal accounts; tip income from Las Cruces’ busy restaurant scene counts if it shows consistency over 12 months. Our underwriters manually review each deposit, so a one-time sale of farm equipment isn’t mistaken for recurring revenue. Average debt-to-income ratios approved this year: 47 % front, 55 % back. Close in an LLC and still qualify if you personally guarantee the note—popular with investors buying duplexes near NMSU and renting by the room.

White Sands Missile Range and Holloman AFB surround Las Cruces, so VA loans dominate the northeast sector. NMHL waives the 1 % VA funding fee for veterans rated 10 % disabled or more, saving $2,650 on a $265K purchase. Surviving spouses of veterans who died in service can also obtain 100 % financing with no funding fee.

Doña Ana County’s high-cost county limit for 2024 is $726,200—meaning you can buy a $700K home in Picacho Hills with zero down and no mortgage insurance. We’ll issue your VA Certificate of Eligibility within two hours using the VA’s online portal, and our Las Cruces appraiser roster includes VA-approved inspectors who understand the unique soil conditions (expansive clay) so your appraisal doesn’t get bogged down. Pair the VA loan with NMHL’s $1,000 flat origination for veterans, and you’ll close with minimal cash: buyers last month brought an average $1,400 total to the table.

• FirstDown: $8,000 at 0 % interest, deferred until refinance/sale; income limit $91K in Doña Ana County; must combine with MFA first mortgage.
• HOME Las Cruces: Up to $15,000 forgiven 20 % per year; household income ≤80 % AMI ($56K for 1-2 persons).
• USDA Rural: 100 % financing east of I-25; 2 % upfront guarantee fee can be rolled in; monthly MI only 0.35 %.
• NMHL Community Grant: $2,500 for any borrower under 115 % AMI buying within Las Cruces city limits; funds released at closing, no repayment.
• Teacher Next Door: $4,000 for Las Cruces Public Schools employees; combines with any loan program.

Timing matters: FirstDown allocates on the first business day and is often gone by 10 a.m. NMHL locks your assistance simultaneously with your rate lock so you don’t lose funds while negotiating repairs after inspection.