The bill establishes the "New Homes for New Mexico Program," administered by the New Mexico Mortgage Finance Authority, aimed at providing loans to eligible home buyers for purchasing starter homes from qualified builders. The program defines key terms such as "eligible builder," "eligible buyer," and "starter home," and sets forth criteria for participation, including income limits and residency requirements. The authority is tasked with creating an account for program funds, which will include money from loan repayments to support future eligible buyers. Loans can be up to $50,000 for homes outside high-cost counties and $75,000 within those counties, with a zero percent interest rate and repayment conditions tied to the sale of the property or failure to occupy it as a primary residence.

Additionally, the bill includes an appropriation of $10 million from the general fund for the program's implementation in fiscal year 2027 and beyond, ensuring that any unspent funds do not revert to the general fund. The authority is also required to solicit competitive bids from builders and establish rules for program administration, application criteria, and verification processes to ensure compliance with the program's objectives.