New Mexico DSCR Loans for STR Financing
Grow Your Portfolio with DSCR Loans
Whether you're financing STRs in Santa Fe, long-term rentals in Albuquerque, or casitas in Taos, our DSCR loans
give New Mexico investors access to flexible, property-focused financing. These loans rely on the income your property generates—not your W-2s, tax returns, or personal DTI. We evaluate the asset’s ability to cash flow and service its debt. With strong tourist traffic and lower property prices, New Mexico offers high return potential for investors. DSCR loans allow you to qualify quickly, act fast, and scale efficiently—whether you're managing one unit or building a growing portfolio.
How to qualify
To obtain a quote, we will need the following information:
Property Value and
Purchase Price
Down Payment
Amount
Credit Score
Asset Types
- Single Family Homes
- Townhomes
- Condos
- 2 - 4 Units (Duplex, Triplex, Quadplex)
- Multi-Family: 5 - 8 Units
- Mixed-Use: 2 - 8 Units
- Multi-Family: 9+ Unit
Loan Terms
- Loan Sizes:
$100k up to $3.5 Million (Larger loan sizes available on a case by case basis)
- Purchase LTV:
Up to 85%
- Rate & Term Refinance LTV:
Up to 80%
- Cash Out Refinance LTV:
Up to 80%
- Amortization:
30 Year % 40 Year Amortization Options Available
- Term Lengths:
5/6 ARMs, 7/6 ARMs, 10 Year Interest Only, 30 Year Fixed & 40 Year Fixed
- Floor Rate:
5.50% (subject to change daily due to market volatility)
- Full Recourse
with personal guarantee required for all borrowers with majority ownership (typically 20%+ or 25%+ if closing in an Entity)
- DSCR Requirement: 1.00x or greater depending on loan size and property type. Sub-1.00x DSCR and NO DSCR options available.
- Vesting:
Lending to Individuals, LLCs, and Corporations. Trusts Allowable on a Case by Case Basis.
- Average Time to Close:
14 to 35 days
Wondering if you qualify for investment property financing in your area?
We offer lending services in all 50 states!
Frequently Asked Questions
What is a DSCR loan and how does it work for New Mexico real estate investors?
A DSCR loan (Debt Service Coverage Ratio loan) helps real estate investors qualify for financing using rental income from the property instead of personal income documents. Approval depends on whether the asset can generate enough income to cover loan obligations such as principal, interest, taxes, and insurance. This model is perfect for investors focused on scaling portfolios or operating through LLCs. In New Mexico, where markets like Santa Fe, Albuquerque, and Taos thrive on STR income and seasonal demand, DSCR loans make it easier to invest without traditional lending delays.
How is DSCR calculated in a typical loan scenario?
New Mexico real estate investors calculate DSCR by dividing a property's net operating income (NOI) by its yearly debt obligations. For instance, if a New Mexico rental brings in $78,000 in NOI and has $65,000 in debt service, the DSCR would be 1.20. This means the property is cash-flow positive and more likely to be approved by lenders. While 1.00 is typically the minimum DSCR required in New Mexico, stronger ratios—especially in STR markets like Santa Fe, Albuquerque, and Taos—can lead to more favorable rates. Understanding DSCR in New Mexico is key to evaluating rental investments and accessing flexible financing.
What is considered a good DSCR ratio for New Mexico investors when applying for financing?
In New Mexico, a good DSCR ratio typically begins at 1.20. While the minimum threshold for loan approval is often 1.00, a stronger ratio—like 1.20—can unlock better financing terms. A 1.20 DSCR in New Mexico indicates that the rental income exceeds debt service by 20%, a key factor for lender confidence. Whether you're investing in Santa Fe, Albuquerque, or Las Cruces, understanding DSCR in New Mexico helps you assess deal quality, reduce financing risk, and improve your portfolio's overall stability.
Can I qualify for a DSCR loan if my personal income is limited?
Yes, you can qualify for a DSCR loan even if your personal income is limited. DSCR loans, often referred to as Airbnb loans when used for short-term rental properties, are designed to approve borrowers based on the income the property generates—not personal W-2s, tax returns, or debt-to-income ratios. Lenders calculate the property's debt service coverage ratio to determine if the income is sufficient to support the loan. As long as the DSCR meets the required threshold—usually 1.00 or higher—you can often be approved regardless of personal income. This makes Airbnb loans ideal for self-employed investors, business owners, or anyone scaling a rental portfolio without relying on traditional underwriting standards.
How does a lender evaluate rental income when approving a DSCR loan?
Lenders in New Mexico approve DSCR loans based on the rental income a property produces—not on tax returns or W-2s. In New Mexico, lenders evaluate lease agreements, Airbnb revenue, or market rent reports to estimate income. This figure is used to calculate the DSCR by comparing it to the property’s debt service. If the DSCR is 1.00 or higher, New Mexico investors may qualify, even without traditional financial documentation. DSCR loans in New Mexico are ideal for scaling rental portfolios. Understanding how rental income is evaluated in New Mexico is key to securing efficient, property-based financing.
What’s the minimum debt service coverage ratio required for approval?
New Mexico DSCR lenders generally look for a minimum DSCR of 1.00 to approve most loans. In some cases, New Mexico lenders may allow a DSCR as low as 0.75, though this typically requires stronger reserves, equity, or a solid investor track record. A DSCR of 1.20 or more is preferred in New Mexico, particularly for investments in markets like Albuquerque, Santa Fe, or Las Cruces. DSCR loans in New Mexico allow property performance—not personal income—to determine eligibility. Understanding New Mexico’s DSCR minimums helps ensure you approach financing with a competitive edge and realistic expectations.
Who should consider using a DSCR instead of a traditional loan?
These loans are perfect for self-employed individuals, LLCs, and investors managing multiple properties. In New Mexico, DSCR loans offer a flexible way to qualify through rental income, especially for properties in Santa Fe, Albuquerque, or Taos. New Mexico borrowers use this approach to avoid personal income verification, benefiting from faster approvals and a simplified underwriting process tailored to investment goals.
