Loan program available for first time home buyers in New Mexico

First-time homebuyers can find new financial assistance from the state and federal government.

Gov. Bill Richardson and the New Mexico Mortgage Finance Authority announced a loan program Tuesday that will help lower- and middle-income New Mexicans make a down payment in buying their first house.

The program takes advantage of a tax credit that was created as part of the federal economic stimulus package. First-time homebuyers can get a federal tax credit of 10 percent of the purchase price of a home, up to $8,000.

The finance authority will provide a no-interest loan up to $6,500 for a down payment and individuals can use their federal tax credit to pay off the loan.