New Mexico Second Home Loans and Mortgage Solutions
Financing Your Dream Second Home
Looking to purchase a second home in New Mexico? Whether it’s a Taos adobe, a Santa Fe condo, or a retreat in the Sandia Mountains, BNB Lending offers second home loans designed for part-time personal occupancy. We help buyers navigate New Mexico’s unique tax structure, STR licensing rules, and local zoning. With fast closings, competitive terms, and guidance on residential vs. non-residential classification, we ensure your New Mexico second home loan is structured to align with your goals while staying compliant with lender and state standards.
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 are the requirements for a second home loan in New Mexico?
New Mexico second home loans follow Fannie Mae’s federal standards. The property must be a single-unit residence, suitable for year-round living, and personally occupied by the borrower for part of the year. It cannot be held in an LLC or used primarily for short-term rentals. Lenders usually require 10–20% down, stable income, and strong credit. New Mexico does not add extra loan conditions beyond national rules, though local zoning and HOA restrictions may apply. At BNB Lending, we verify your use case and location to ensure second home loan eligibility.
How do short-term rental rules affect loan classification?
If a property is rented frequently, it may not qualify for second home financing and could be treated as an investment. While New Mexico has no statewide STR ban, many counties require a lodger’s tax license with rates between 5% and 8%. Local municipalities may also impose additional rules or taxes. At BNB Lending, we assess your intended rental use, location, and STR obligations to ensure the loan structure remains compliant and aligned with both lender expectations and New Mexico's tax laws.
Do second homes qualify for property tax benefits in New Mexico?
New Mexico second homes do not qualify for the state’s homeowner tax credit, which is available only to primary residences. Property is assessed at 33.33% of market value for residential use, but homes used mainly for short-term rental may be taxed as non-residential, which can lead to a higher rate. There are no homestead exemptions for vacation homes. BNB Lending helps buyers understand New Mexico’s property classifications and STR implications to forecast tax obligations before finalizing their financing plan.
Can I deduct mortgage interest on a second home?
Mortgage interest on a second home may be deducted at the federal level if you itemize and the home meets IRS use requirements. New Mexico also allows a mortgage interest deduction on state tax returns, but the homeowner credit does not apply to second homes. If the property generates rental income, deductions may need to be prorated. At BNB Lending, we help structure your mortgage with tax considerations in mind and recommend working with a CPA familiar with New Mexico tax codes and federal limitations.
Are there second home loan programs in New Mexico?
New Mexico Mortgage Finance Authority programs serve primary homeowners and affordable housing borrowers. They do not extend to second homes, vacation residences, or investment properties. Buyers seeking a part-time home must use private lenders. BNB Lending fills that gap with flexible second home mortgage options across New Mexico—from the Sangre de Cristo Mountains to Santa Fe and beyond. We help you navigate STR regulations, zoning rules, and tax classifications while securing a loan that fits your goals.
What types of properties qualify for second home loans?
Eligible second homes must be single-unit properties suitable for year-round occupancy and used primarily by the borrower for personal stays. These may include condos, detached homes, or townhouses. The property must pass appraisal, meet lender standards, and cannot be a timeshare or investment-only dwelling. In New Mexico, zoning rules or STR licenses may affect how the property can be used. At BNB Lending, we evaluate all local conditions to ensure your home qualifies for second home loan financing without complications.
Who benefits from choosing a second home loan over an investment loan?
These loans are perfect for self-employed individuals, LLCs, and investors managing multiple properties. If you plan to use your New Mexico home primarily for personal stays and only rent it occasionally, a second home loan may offer better rates and terms than an investment loan. These loans must be in your personal name—not held by an LLC. BNB Lending structures New Mexico second home loans to provide flexibility while keeping your financing compliant with lender and zoning guidelines.
Thinking beyond New Mexico? Explore Airbnb loans and second home opportunities in nearby states like Arizona or Colorado to expand your portfolio.
