Check the Land and the Construction Before the Loan
New Mexico has two property characteristics that stop financing cold, and neither one appears in a listing description.
Land tenure. New Mexico contains substantial tribal trust land, land grant holdings, and properties encumbered by acequia water rights and shared ditch associations. Trust land generally cannot be financed through conventional or Non-QM residential channels at all. Land grant and acequia complications do not necessarily prevent a loan, but they surface on the title commitment and they take time to resolve usually more time than a 30-day contract allows.
Construction type. A meaningful share of New Mexico housing is adobe, rammed earth, or other non-standard construction, and a further share is manufactured housing. Many Non-QM investors either exclude these outright or require additional appraisal support. An adobe home in Santa Fe that appraises beautifully can still be declined on construction type by a lender whose guidelines simply do not contemplate it.
So the first two questions on any New Mexico purchase are: what is the land tenure, and what is the construction type? Get both confirmed in writing before you order an appraisal. This is the New Mexico equivalent of Hawaii’s leasehold problem, and it kills more files here than any income issue.
The Lenders
Select Home Loans
Select Home Loans is a Non-QM mortgage broker (NMLS #2384002) writing 1099 investor loans in New Mexico. Appetite for adobe and non-standard construction varies considerably between wholesale investors, which is exactly the situation a broker solves a property one shelf declines on construction type is routine at another.
We quote DSCR and bank statement alternatives alongside the 1099 program so you can compare paths on the same property.
Get a quote · (888) 550-3296
Other lenders worth calling — listed in no particular order:
Capital Home Mortgage New Mexico New Mexico operations across 1099, bank statement, 1-year and 2-year P&L, asset qualifier, ITIN, and DSCR programs.
Mbanc A direct lender publishing New Mexico investment property programs across bank statement, 1099, asset utilization, and DSCR, including no-ratio structures at reduced LTV. Note they serve New Mexico for investment property only; owner-occupied requires a different lender.
Newfi Lending A Non-QM lender covering New Mexico with DSCR, bank statement, and self-employed programs, with in-house underwriting.
Angel Oak Mortgage Solutions One of the largest dedicated Non-QM investors nationally, with a purpose-built 1099 income program. Reached through a broker.
Griffin Funding Publishes qualifying on 90 to 100 percent of gross 1099 income, 620 minimum credit, and loan amounts to $4 million.
Watermen Capital A DSCR-focused lender with stated New Mexico coverage among a broad multi-state footprint.
New Mexico’s local Non-QM bench is thin, and most volume here is written by national lenders. Verify current licensure before relying on any listing see the disclaimer at the end of this page.
How Qualifying Works
A 1099 loan qualifies you on income documented on your 1099 forms rather than the net profit shown after deductions. Appraisal, assets, credit, reserves, and ability-to-repay analysis all work normally.
Programs split into two camps. Some apply 90 percent or more of gross 1099 income with no expense deduction. Others apply an expense factor of 10 to 25 percent first.
On $180,000 of annual 1099 income:
| Method | Qualifying income |
|---|---|
| 90% of gross | $162,000/yr — $13,500/mo |
| Gross less 20% expense factor | $144,000/yr — $12,000/mo |
| Net profit from your tax return | frequently under $80,000 |
Model your payment with our mortgage calculators before you shop.
ITIN programs are worth knowing about here. New Mexico has a substantial population of taxpayers who file with an Individual Taxpayer Identification Number rather than a Social Security number. ITIN mortgage programs exist and are fully underwritten several of the lenders above publish them. If this applies to you, say so at the outset rather than discovering the product exists three lenders in.
One year or two
One-year suits growing income or a recent shift to independent work with prior experience in the same field.
Two-year suits construction working around monsoon season, film production income tied to project cycles, and tourism operators whose year concentrates around specific seasons.
The two-year self-employment history requirement is separate from the two-year income lookback. Ask about both.
New Mexico’s 1099 Population
Film and television production crew. New Mexico has one of the more established production incentive programs in the country and a genuine standing crew base, almost entirely 1099 the same project-cycle income pattern that makes Georgia’s film workforce a two-year-lookback case.
National laboratory and defense contractors around Los Alamos, Sandia, and Kirtland, where a substantial contractor ecosystem operates on independent engagements.
Construction and specialty trades, including a distinct trade base working traditional adobe and earthen construction.
Artists, gallery professionals, and tourism operators in Santa Fe and Taos a large independent-earner population in a small market.
Energy contractors in the Permian and San Juan basins, with income patterns tied to drilling activity.
New Mexico Investment Markets
Albuquerque carries the bulk of investor inventory with the strongest rent-to-price ratios in the state, a diversified employment base, and reasonable appraisal support. This is where DSCR works.
Santa Fe commands values well above the state average driven by second-home and out-of-state demand, with rents that have not kept pace. DSCR frequently fails here; the 1099 path is often the only one. Construction-type issues are also most common in Santa Fe.
Las Cruces benefits from university employment and proximity to El Paso, with steady rental demand.
Taos and the northern mountain communities are seasonal short-term rental markets. Several have moved to regulate short-term rentals verify the specific jurisdiction.
Rural counties have thin comparable sales and are where loan minimums bind. A meaningful share of inventory prices below common Non-QM floors of roughly $75,000 to $150,000.
Other New Mexico Specifics
Water rights are a real diligence item on any property with acreage, irrigation, or a well. Acequia association membership carries obligations. This does not usually affect a standard residential loan, but it absolutely affects the property, and it belongs with a New Mexico attorney rather than a lender.
Non-judicial foreclosure is limited. New Mexico foreclosures generally proceed through the courts, which lengthens timelines and makes investors somewhat more conservative on leverage than in a power-of-sale state.
Wildfire exposure has tightened insurance availability in the mountain and forested areas, as it has across the Mountain West. Get an actual binder before finalizing price.
Property taxes are comparatively low, which is a genuine advantage New Mexico files do not face the tax drag that sinks DSCR ratios in New Jersey, New Hampshire, or Nebraska.
Investment Property Terms
- Down payment: 20–25 percent typical, better pricing at 25 percent and above
- Credit: 620 floor at most investors; real improvements at 680, 700, 740
- Reserves: 6–12 months PITIA, often with additional reserves per financed property already owned
- Prepayment penalties: common on investment property, typically 1–3 years, often buyable at a quarter to a half point
Compare with our purchase loan options and refinance loan options.
1099 or DSCR?
Use DSCR in Albuquerque and Las Cruces, where rent-to-price ratios work and low property taxes help rather than hurt.
Use a 1099 loan in Santa Fe and Taos, where out-of-state demand has decoupled prices from local rents — the same dynamic as Montana’s resort markets.
On any adobe, earthen, or manufactured property, product choice matters less than finding an investor who will lend on the construction type at all. Establish that first.
If you already hold New Mexico rentals, a DSCR refinance works where the ratio supports it.
Questions to Ask
- What is the land tenure and construction type and do you lend on it? (Ask this before anything else.)
- Do you finance adobe or rammed earth construction?
- Do you qualify on gross 1099 income, or apply an expense factor?
- Do you offer an ITIN program?
- What is your minimum loan amount? (Ask this outside Albuquerque.)
- Can you quote DSCR on the same property?
More from Select Home Loans: DSCR loans · DSCR refinance · Learning Center · About Select
Disclaimer
The lenders described on this page are listed in no particular order. Select Home Loans appears first because we publish this page and originate these loans; we have a commercial interest in this category. No lender listed has paid for placement.
This page reflects our opinion based on publicly available information at the time of writing. It is general information, not a recommendation, an endorsement, or an offer of credit. Lender programs, guidelines, licensure, pricing, and availability change frequently and without notice, and nothing here guarantees that any lender is currently licensed in New Mexico, currently offers the program described, or will approve your file.
Nothing here is legal advice. Land tenure, tribal trust land, land grant holdings, acequia membership, and water rights carry significant legal consequences and should be reviewed by a New Mexico attorney and confirmed through title. Consult a licensed mortgage professional and where appropriate a tax advisor, attorney, or financial advisor before making any borrowing decision. Verify any lender’s licensure through NMLS Consumer Access at nmlsconsumeraccess.org.
Select Home Loans, NMLS #2384002. Equal Housing Opportunity.
