Inventory in the City Different ticked up 11 % this quarter, but that still leaves only 420 homes for sale county-wide—half the pre-pandemic norm. Median list price sits at $575 k, yet sale-to-list ratio is 99.3 %, meaning most properties still fetch asking or better. Entry-level sweet spot: $400–550 k in South Capitol or mid-town where 1950s adobes trade on charm, not square footage. Move-up buyers eye $700–900 k in the Eastside Historic District where thick adobe walls meet curated gardens. Luxury buyers concentrate above $1.2 million in Las Campanas, with its Jack Nicklaus golf and 13-mile trail system, or in Tesuque’s sprawling estates where acequia-fed acreage offers privacy 10 minutes from the plaza.

Rate environment: 30-year fixed loans are lingering in the mid-6 % range, but adjustable-rate mortgages at 5.875 % (7/6 ARM) are luring savvy buyers who plan to refinance within five years. Because Santa Fe’s average appreciation over the last 50 years is 5.4 % annually, even a short-term hold can build equity quickly.

• New construction is limited; only 78 building permits issued YTD for single-family homes, so resale competition remains tight.
• Sustainable features—radiant heat, xeriscaping, photovoltaic—command 4–7 % premiums and appraise higher when documented by third-party HERS scores.
• Short-term rentals under 30 days are now capped at 1,000 licenses city-wide; buy-and-hold investors are pivoting to 31+ day furnished stays, keeping rental yields above 6 %.

Canyon Road / Eastside Historic: Expect $650–1 k per square foot. NMHL jumbo 15 % down to $1.5 million works well for artists who want live-work zoning and gallery foot traffic. Adobe must be historic-certified to qualify for 25 % property-tax reduction through the State Heritage program.

South Capitol: Walkable to the Roundhouse and railroad depot, homes here average $525 k. MFA first-time buyer grants cover the entire 3 % down on a conventional 97 loan. Walkability score 89 keeps resale demand strong.

Aldea de Santa Fe: A planned community 15 minutes northwest, homes trade at $275–350 k. HOA maintains trails and community garden; NMHL FHA 203(k) renovation loans pair nicely with the area’s 2000s builds that need modern appliances.

Rancho Viejo & Southside: Santa Fe’s most affordable pocket, with 3-bed stucco ranches at $380 k. USDA 100 % financing still maps here, and NMHL waives the 1 % guarantee fee for veterans.

Tesuque: Acre-plus lots start at $900 k. Lenders typically require 30–45 day rate locks because well-water and septic inspections stretch timelines. Portfolio ARMs at 5.5 % help jumbo buyers hedge against carrying costs.

Between state, county, city, and nonprofit coffers, Santa Fe buyers can layer incentives that erase most upfront costs:

1. New Mexico MFA First@home: 30-year fixed at 0.5 % below market plus a $12 k forgivable second lien. Income cap for Santa Fe County: $86,340 for 1–2 persons, $100 k for 3+.

2. Santa Fe County CARES Grant: Up to $5 k for closing or down payment; forgiven after five years. Must be primary residence; manufactured homes on owned land qualify.

3. City of Santa Fe Homeward Bound: $10 k 0 % deferred loan; due on sale, refinance, or 30-year maturity. Targeted to “essential workers” including gallery staff—proof of employment at a certified arts nonprofit counts.

4. New Mexico Veterans’ Down-Payment Assistance: $10 k grant that pairs with VA $0-down loans, so veterans can literally move in with $0. Funding resets every July; NMHL reserves your spot at pre-approval.

5. Mortgage Credit Certificate (MCC): Converts 40 % of your annual mortgage interest (up to $2 k) into a federal tax credit for the life of the loan. On a $450 k mortgage at 6.5 % that equates to roughly $175 monthly savings.

Because Santa Fe’s economy runs on tourism, arts, and remote services, irregular income is the norm, not the exception. NMHL built product suites around the creative capital reality:

Bank-Statement & 1099-Only: Use 12 or 24 months of deposits; no tax returns. Loan amounts to $1.25 million with 10 % down. Perfect for muralists, coders, or consultants who bank large chunks quarterly.

FHA Fresh-Start: Allows prior bankruptcy (Ch 7 discharged 24 months), foreclosure (36 months), or short sale (no wait if payments were current). Credit scores to 580; 3.5 % down gift okay.

VA & Native American Direct Loans: $0 down to $766,550; $1.15 million in high-cost pockets like Tesuque. We waive the funding fee for veterans rated 10 % disabled or greater and reimburse the VA appraisal fee at closing.

Non-QM Asset-Depletion: Take 100 % of liquid assets divided by 60 months as qualifying income. Ideal for retirees or trust-fund artists who live off investment dividends.

ITIN & Foreign National: 20 % down, 30-year fixed, no FICO required. Common for second-home buyers from Mexico or Europe drawn by Santa Fe’s international arts reputation.

At 0.68 % combined city/county rate, Santa Fe property taxes run roughly half the national average. On a $550 k assessed value you’re looking at $3,740 annually—about $311 monthly. Taxes are paid in two installments: November and April; lenders require a minimum two-month cushion in escrow. Because New Mexico uses full-value assessment, expect the purchase price to become the new taxable base unless you protest by April 30.

Tax breaks: Head of household 65 or older gets a $250 k valuation exemption, slicing roughly $1,360 off the yearly bill. Install energy-efficient solar and you can deduct 10 % of the system cost from state income tax, up to $9 k, and the added value is exempt from property tax for 12 years.

Insurance: Wildfire risk pushes premiums 15–25 % higher than Albuquerque. Average annual HO premium in Santa Fe: $1,850 vs. $1,320 statewide. Choosing a metal roof or defensible-space landscaping can cut premiums 8 %. NMHL’s insurance affiliate shops eight carriers to bundle auto and home, saving clients a median $680 per year.

Whether you crave sunrise views over the Sangre de Cristos or want to stroll Canyon Road galleries on Friday nights, the first step is knowing exactly what you can afford in Santa Fe’s eclectic market. Upload your last 12 months of bank statements or your DD-214, and NMHL’s local underwriters will have numbers back to you in two business hours—not two days. We lend in every Santa Fe ZIP: 87501, 87505, 87507, 87508, plus the 87506 and 87540 outskirts. Lock your rate for up to 90 days while you house-hunt, and if rates drop, we’ll float you down at no cost. Call 505-555-NMHL or tap the Apply Now button to get a same-day pre-approval letter crafted specifically for Santa Fe sellers. Let’s turn that adobe dream into your forever address.