Longleaf Lending New Mexico DSCR Loans

DSCR Loans in New Mexico:
Modern Financing for Investors

Veteran-owned lender, offering investors DSCR Loans in New Mexico for no-income-verification, hassle-free long-term financing.

Modern, long-term financing solutions

Why Choose Longleaf Lending for Your New Mexico DSCR Loan Needs

Crafted with savvy New Mexico investors in mind, our Long-Term DSCR Loans enable wealth building through a diverse portfolio of rental properties. By prioritizing your investment property's rental income and cash flow metrics, we simplify the loan process. As a top DSCR lender, enjoy competitive interest rates starting at 6.5%.

No Income Verification
Our no-income-verification process eliminates traditional barriers, focusing on your investment's cash flow to qualify you for a loan. This DSCR-centered approach ensures a hassle-free experience, catering specifically to real estate investors' unique needs.
Tailored to Investment Goals
Whether you're investing in short-term vacation rentals or long-term leases, our DSCR loans are crafted to align with your strategic investment plans. This versatility ensures that whatever your goals, our financing solutions fit perfectly.
Efficiency and Speed
At Longleaf Lending, we value your time. Our New Mexico DSCR loan application and approval processes are optimized for efficiency, ensuring quick, smooth progress from your initial application to the final funding.
Adaptive Financing Solutions
Our financing options are as diverse as the properties you invest in. We're committed to offering flexible DSCR solutions that accommodate a wide range of property types and investor profiles.

Fast and simple

How Longleaf Lending's DSCR Loans Work

DSCR (Debt Service Coverage Ratio) loans are a type of financing used by real estate investors that focus on the income generated by the property rather than the personal income of the borrower. Here’s a simplified explanation:

Calculation.
The DSCR is calculated by dividing the property's Net Operating Income (NOI) by its total annual debt payments. NOI reflects the positive cash flow from the property after operating expenses (mortgage payment, taxes, and insurance) are subtracted.
Criteria for approval.
For New Mexico, we typically require a DSCR greater than 1.0, indicating the investment property generates sufficient cash flow to cover its debt obligations. A common threshold is a DSCR of 1.0 to 1.2 or higher, but it is possible to go lower.
No personal income verification.
The approval process emphasizes the property’s cash flow potential, not the borrower's personal financial situation, allowing for more accessible financing for investors.
Craftsman house

DSCR Loan Terms

Get the financing you need to build wealth with real estate in New Mexico using our DSCR long-term 30-year investor loans.

Terms current as of April 25, 2024

Long Term Rental Loan
Loan Value:
$75,000-$2,000,000
LTV:
Up to 80% (as is)
Interest Rate:
Starting at 6.5%
Points:
2-3
Term:
30 years
Closing Time:
As fast as 2 weeks
FICO:
600 minimum

DSCR Loan Requirements Simplified

Understand DSCR Loan New Mexico Requirements

Securing a DSCR Loan in New Mexico involves a focused evaluation of your experience, liquidity, credit score, and investment property's income potential. Here's a summary of the current requirements you should know before applying for a DSCR Loan in New Mexico:

DSCR Calculation:
Minimum of 0.65x
Credit Score:
600 minimum
Loan Amount:
$75,000 to $3 million
Investor Experience:
none required
US Citizenship:
not required
Documentation:
Some of the key required documents include personal ID, bank statements, entity documentation if using a company (operating agreement, EIN letter, articles of incorporation), lease agreement (if currently leased), appraisal (requrested by us), and the purchase HUD (if purchased in the last 12 months).
Occupancy:
Short or long-term rentals, vacant or occupied
Property Type:
SFR, 2-4 units, multifamily 5+ units, mixed use, or commercial
DSCR Loan New Mexico requirements

Designed for New Mexico investors

Build wealth through real estate with our DSCR Loans in New Mexico

New Mexico's Real Estate Potential: Ideal for 30-Year Rental and Long-Term DSCR Loans

New Mexico long term rental property loans

New Mexico's real estate market is marked by its unique blend of cultural diversity, beautiful landscapes, and economic opportunities in sectors like energy, technology, and film production. Cities like Albuquerque and Santa Fe attract a mix of professionals, artists, and retirees, while the state's rural areas offer opportunities in agricultural and recreational properties. DSCR loans in New Mexico provide a flexible financing solution for investors looking to tap into the state's varied real estate offerings.

Why DSCR Loans Are Ideal for New Mexico's Real Estate Market

DSCR loans are particularly well-suited for the New Mexico market due to several factors:
  • Economic Growth: With investments in sectors such as renewable energy, technology, and tourism, New Mexico's economy is diversifying and growing, supporting a steady demand for rental properties.
  • Cultural and Recreational Appeal: The state's rich cultural heritage and outdoor recreational opportunities make it an attractive place to live and visit, bolstering the short-term rental market and demand for vacation properties.
  • Simplified Financing Process: By focusing on the rental income potential of the property rather than the personal financial history of the investor, DSCR loans streamline the financing process, enabling quicker property acquisitions and portfolio expansion.

Strategic Advantages of SFR Investments in New Mexico

Investing in Single-Family Residential (SFR) properties in New Mexico offers significant advantages:
  • Diverse Tenant Base: New Mexico's appeal to a wide range of demographics, including young professionals, families, retirees, and tourists, ensures a consistent demand for rental homes across the state.
  • Appreciation Potential: With its growing economy and increasing popularity as a living and vacation destination, New Mexico presents opportunities for property value appreciation, alongside the benefit of generating rental income.

Maximizing Returns with New Mexico DSCR Loans

DSCR loans in New Mexico enable investors to fully leverage the state's real estate potential through:
  • Portfolio Diversification: The ability to finance various types of properties across different New Mexico markets allows investors to build a diversified portfolio, reducing risk and maximizing potential returns.
  • Efficient Market Entry and Expansion: The efficient approval process for DSCR loans facilitates quick market entry and expansion, helping investors swiftly capitalize on new opportunities as they arise.
New Mexico’s real estate market, with its unique cultural and natural attractions, economic diversification, and growing sectors, presents a lucrative landscape for investors. DSCR loans offer the financial agility needed to navigate this market effectively, providing a streamlined approach to financing that aligns with the investment goals of today’s real estate investors. Whether targeting the vibrant urban centers or the scenic rural areas, DSCR loans in New Mexico offer a foundation for success in one of the most enchanting real estate markets in the Southwest.

New Mexico DSCR Loan frequently asked questions

How is DSCR Calculated in New Mexico?

How is DSCR calculated in New Mexico?

In New Mexico, the Debt Service Coverage Ration (DSCR) is calculated by dividing a property's rental income by it's expenses. In some cases another method could be used which involves dividing Net Operating Income (NOI) by the Debt Service.

Income: For simplicty purposes, you can think about the top line as the annual rental income for your investment property. In some cases a 90% factor might be applied.

Expenses: There are four main components of the expenses.

  • Principal and Interest
  • Taxes
  • Insurance
  • HOA fees

Here's an example so you can see exactly how DSCR is calculated. To keep things easy, we are assuming there is no principal payment, which you might expect with an interest only period. To learn more about how DSCR loans work, check out our detailed article.

How is DSCR calculated in New Mexico?

About the Longleaf Lending Team

Longleaf Lending is a veteran-owned, direct lending firm with a deep focus on the real estate market. Established in Texas, we bring over two decades of combined experience in real estate, hard money lending, and investment banking.

Funding Experience

Since 2018, we have funded over 600 hard money loans, totaling more than $125 million in loan value.

Expert Leadership

Our leadership includes co-founders Pete Underwood and Matt Weidert, who bring extensive experience from real estate investment, investment banking, and military service.

Commitment to Innovation

We are committed to providing innovative real estate solutions, with a strong focus on integrity and professionalism as a member of the American Association of Private Lenders.

For more about our journey and the dedicated team behind Longleaf Lending, visit our full About Us page.

Explore other New Mexico DSCR markets

Submit your New Mexico loan request today

Start your DSCR Loan funding today

Ready to propel your New Mexico rental project forward? Our simple loan request process is designed to get you the funding you need quickly and efficiently.

How the DSCR funding process works with Longleaf Lending

Submit our Online Form

Begin by filling out our short form. It's straightforward and only takes a minute. Provide us with some basic information about you and your project.

Get a Term Sheet in less than 24 Hours

After submitting your form, you'll receive a detailed term sheet from us within 24 hours. This term sheet will outline the terms of your loan and give you the confidence to proceed with your project.

Get Funded

Experience fast and straightforward funding. At Longleaf Lending, you'll work directly with our team throughout the entire process, from application to funding.

Applying does not affect your credit score

Apply for a New Mexico DSCR Loan in 60 Seconds

Begin the funding process by completing our short online form.