The proposed bill establishes the "New Homes for New Mexico Program," which aims to provide loans to eligible home buyers for the purchase of starter homes built by eligible builders. The New Mexico Mortgage Finance Authority will administer the program, which includes creating an account for designated funds and establishing rules for program operation. Eligible buyers must not have previously owned a home, have an annual income below 120% of the area median income for their county, and must use the purchased home as their primary residence. The program will also set criteria for eligible builders and the homes they construct, including size limitations and construction timelines.

Additionally, the bill appropriates $25 million from the general fund to support the program's implementation in fiscal year 2027 and beyond. Loans will be capped at $50,000 for homes outside high-cost counties and $75,000 within those counties, with a zero percent interest rate. Repayment will occur upon the sale of the property or if the buyer fails to occupy the home as their primary residence. The authority is tasked with soliciting competitive bids from builders and ensuring compliance with program requirements through periodic verification.