What you need to know:
- Physician home loans in New Mexico allow for more of your payment to go towards principal thanks to no private mortgage insurance (PMI).
- New Mexico physician mortgage loans may offer customized treatment of student loan debt from medical or dental school when calculating debt-to-income ratio (DTI).
- Pay 0% down for loans as high as $1 million or more as a physician, dentist, veterinarian or other qualified medical professionals.
Buying a home in New Mexico as a physician or dentist can be easy if you secure a doctor mortgage loan. With approximately 6,100 physicians practicing in New Mexico, the state allows for affordable living while sharing the Four Corners region with higher populated states like Colorado and Utah.
The average home price in New Mexico is fairly reasonable at around $281,900, making it one of the more affordable states to own a home. However, according to Zillow, home values have gone up 19.1% in the past year and are expected to continue rising.
With a population of around 2 million, New Mexico is the perfect place to enjoy a laid-back lifestyle with plenty of amenities. Living here means access to untouched nature in large part to mountains, deserts and forests. Or if city life is more your thing, check out Albuquerque or Santa Fe, although they will come with higher housing costs.
Within many cities in New Mexico you can still find large lots of land or spacious homes for a budget-friendly purchase price. Here’s how a physician mortgage works and the information you should know before applying.
New Mexico physician mortgage loan features
Getting a physician mortgage in New Mexico, also known as a doctor loan, could be the tool you need to help unlock your dream of owning a home. These are loans specifically tailored for medical professionals like doctors, nurses, veterinarians and dentists.
They have much higher loan limits than conventional mortgage loans and typically offer financial benefits that are attractive to those with high student loan debt. Most lenders and banks who specialize in doctor mortgage loans in New Mexico come with great features like no PMI as well as options for 0% down.
Here are some of the benefits of doctor mortgage loans in New Mexico:
- No private mortgage insurance (PMI) required.
- 0% down or low down payment options with up to 100% financing.
- New physicians can close before beginning their new position.
- Customized treatment of student loan debt from medical or dental school when calculating DTI.
If the cost of your mortgage is expected to be well above the conventional loan limit (which is around $647,200 for 2022), we recommend researching loan details for a physician mortgage loan in New Mexico. With features like no PMI, zero down payment and lower interest rates than most JUMBO mortgages, a New Mexico physician mortgage loan could be for you.
In many cases, loan amounts, interest rates and terms for physician mortgages are much more favorable than conventional mortgages. They may even have lower down payments than FHA loans.
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7 Best New Mexico physician mortgage lenders
If you’re looking for the top physician mortgage lenders in New Mexico, here are the best options we’ve found through our research. Some of these preferred lenders offer mortgage loans to just doctors or attending physicians, while others lend to those still in residency.
Some banks will also allow dentists, nurses, and veterinarians to borrow under their physician mortgage programs. Review the details of each medical professional program listed below to find one that fits your needs.
1. Flagstar Bank
Flagstar Bank offers doctor mortgage loans for home purchases and refinancing in all 50 states for up to 100% financing with no PMI. They serve H-1B visas and/or green card holders.
Financing choices include:
- 0% down for up to $1 million
- 5% down for up to $1.5 million
Flagstar Bank allows anyone with the following degrees to apply: medical residents, MD, DDS, DMD, OD, Doctor of Pharmacy, DPM, DO, RN, physician assistants, nurse practitioners, clinical nurse specialists, ATP pilots, CPA, attorneys, and veterinarians. To be eligible, one must be 10 years or less from starting one’s career.
There is no 30 year fixed rate option.
To be approved for 5% down, you must have at least a credit score of 700. To be approved for 0% down, you must have at least a credit score of 720.
If you’re a 1099 worker, you need to supply documentation of at least two years of income.
Contact: Tish Kumar. Email Tish.
KeyBank is a well-known bank in New Mexico and has a special Medical Professional Loan program for physicians and dentists. Their loan terms include a maximum mortgage loan of up to $3.5 million with no private mortgage insurance (PMI) requirements.
In addition to offering some of the largest mortgage loans in the country, KeyBank gives allowances for a loan-to-value (LTV) ratio of up to 100% on qualified loans. Medical doctors and dentists can refinance their primary residence or purchase a second home with this program as well.
3. Huntington Bank
Huntington Bank (formerly TCF Bank) is perfect if you are a physician, dentist or veterinarian with an MD, DO, DDS, DMD or DVM designation. Depending on your budget, you could get:
- 0% down for up to $1 million.
- 5% down for up to $1.25 million.
- 10% down for up to $2 million.
Or, if you’re a recent graduate you will also find this program very appealing — new grads can apply for 0% down financing thanks to a letter from their employer and a signed contract showing their expected income.
As with other physician mortgage loans, Huntington Bank does not charge PMI and your medical school debt will not count against your loan approval.
4. U.S. Bank
When you’re choosing a physician mortgage loan in New Mexico, you want a lending partner that has years of experience that you can trust. This is why we recommend U.S. Bank’s physician mortgage program for physicians, nurses, residents and dentists who are buying a home.
Financing options include:
- 5% down for up to $1 million
- 10% down for up to $1.5 million
- 15% down for up to $2 million
Plus, if you’re already a U.S. Bank customer, you’ll get 0.25% of the cost of the loan deducted from your final closing costs, up to a maximum of $1,000.
5. BMO Harris
With BMO Harris you can get an affordable home loan thanks to the BMO Harris Physicians Mortgage Program. Some of the features include no PMI requirement and flexible debt-to-income underwriting options. Doctors and dentists only have to pay 5% down up to $1.5 million or 10% down up to $2 million.
The program is mainly available to licensed medical doctors with MD, DDS, DMD and DO designations. You could also qualify if you have student loan debt, are starting residency soon or have an employment contract with a start date within 90 days of closing.
Financing options include:
- 0% down for up to $1 million
- 5% down for up to $1.5 million
- 10% down for up to $2 million
6. Citizens Bank
Citizens Bank features various financial products including the Citizens Bank Doctor Loan Program. This program is designated for professionals with MD, DO, DDS and DMD designations.
The mortgage financing options from Citizens Bank include no private mortgage insurance, up to 95% financing for loans up to $600,000 and the choice of a fixed-rate or adjustable-rate mortgage.
They offer generous terms for student loan debt to be excluded from the DTI ratio, or your IBR payment can be used. However, a minimum credit score of 700 is required for doctor loans only. The physician mortgage program from Citizens Bank allows for home purchases and limited cash‑out refinances of primary residences.
7. S&T Bank
With S&T Bank’s Professional Mortgage Program, physicians and other eligible professionals can get a loan for 5% down with no required maximum loan amount. No restrictions apply on a physician’s age. Newly self-employed (1099 independent contractor) physicians are allowed with a provided employment agreement.
To be eligible, one must be a medical resident, medical fellow, attorney, or hold a MD, DDS, DMD, DO, DVM, or PhD in a non-medical science. H-1B visas and/or green card holders can be served. VA loans are also available; although, you will find better deals with their Professional Mortgage Program, by comparison.
A 700 or higher FICO score is recommended when using S&T Bank.
Cash out refinances are limited to 80% LTV (Loan-to-Value) and no cash out limit.
30, 20, 15, and 10 year fixed rate options and 5 and 7 year ARM’s options are available.
Contact: Mike Wagner. Email Mike.
If you want to see even more options for doctor mortgage loans in New Mexico, check out our full list of lenders for all 50 states.
Is a doctor mortgage in New Mexico right for you?
If you want to purchase a home in New Mexico at a reasonable price compared to your income, a physician mortgage can be a smart move. In today’s volatile housing market, not everyone has time to save for a down payment or pay off their student loans before buying a home.
Thankfully, applying for a doctor mortgage program from one of the lenders or banks listed above could mean getting the best deal possible. With benefits like 0% downpayment and generous underwriting options for those with student loan debt, owning your dream home might be closer than you think.
Keep in mind that purchasing or refinancing your home in New Mexico is an investment in your future. Before deciding on a New Mexico doctor mortgage loan, make sure it fits into your holistic financial plan. If you’re ready for a quote, get started by filling out the form below.