New Mexico House bill authored by Rep. Parajón creating 0% interest homebuyer loan program passes House and Senate

Passed bill authored by State Rep. Cristina Parajón aims to expand access to homeownership through a new program offering 0% interest loans to eligible first-time homebuyers, following approval in both chambers, according to the New Mexico Legislature.

HB 200 passed both chambers as of Thursday, Feb. 19, clearing the House by a vote of 52-15 and the Senate by a vote of 22-13.

In the House, 44 Democrats and eight Republicans voted in favor of the bill, while 15 Republicans opposed it.

Meanwhile, in the Senate, 17 Democrats and three Republicans voted in favor, while two Democrats and 11 Republicans voted against it.

Cristina Parajón introduced the bill in the New Mexico House on Wednesday, Jan. 28 during the 57th Legislature.

Parajón graduated from Harvard University in 2018 with a BA.

Parajón, a Democrat, was elected to the New Mexico State House in 2023 to represent the state’s 25th House district, replacing previous state representative Christine Trujillo.

According to the New Mexico Legislature website, the bill’s title was officially listed as: ‘New Homes for New Mexico Program’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill creates the New Homes for New Mexico program, run by the New Mexico Mortgage Finance Authority, to provide 0% interest loans to first-time homebuyers purchasing “starter homes” from approved builders. Loans are capped at $50,000 per household, or $75,000 in high-cost counties of Los Alamos, Santa Fe and Taos, and must be repaid when the home is sold or no longer used as a primary residence. Buyers must earn less than 120% of area median income, and builders must meet size, lot and affordability limits. The bill appropriates $25 million from the general fund for the program beginning in fiscal 2027, with repayments recycled for future loans.

The bill was co-sponsored by Rep. Javier Martínez (Democrat – District 11), Sen. Heather Berghmans (Democrat – District 15), and Sen. Cindy Nava (Democrat – District 9).

In New Mexico, the legislative process involves multiple steps: a bill is introduced in either the House or Senate, assigned to a committee for review, debated and voted on in both chambers, and, if approved, sent to the governor for signature or veto. The Legislature meets annually, commencing on the third Tuesday in January, with 60-day sessions in odd-numbered years and 30-day sessions in even-numbered years. While numerous bills are introduced each session, only a fraction successfully navigate the process to become law. You can read more about bills and other measures here.