5 Best Physician Mortgage Loans in New Mexico

Physician mortgage loans in New Mexico are available to medical doctors depending on the specific loan program of the lender.

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Key Terms

  • A New Mexico physician mortgage loan can include high loan limits as well as the option of up to 100% financing.
  • Health care professionals with student loan payments get special consideration of this debt under doctor loans.
  • You can qualify for higher loan amounts than might otherwise be available when you use a doctor mortgage.

Outsiders might think of it as a dry, hot state with a lot of desert areas, but New Mexico is a home of much natural beauty that never goes unappreciated by its residents, including over 5,000 working doctors. Whether it’s the unique high desert landscape of Taos or the cultural and artistic depths of Santa Fe and Albuquerque, this four corner state has something for everyone. 

For many, however, including doctors in the state, owning a home in New Mexico may seem out of reach. Data from the New Mexico Association of Realtors shows the average sales price for single-family homes in April 2022 was $308,250. The average number of days a home was on the market in April was 23, with 90 homes sold, a true housing shortage area.

The New Mexico physician mortgage loan program is a unique opportunity that could help qualified doctors and dentists buy or refinance a house in the state. With this program, professionals may be able to buy with a low down payment or none at all. 

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The positives and negatives of New Mexico physician mortgage loans

Everything comes with pros and cons, even doctor mortgages. New Mexico physician mortgage loans offer some big ‘pluses’ to start with, including:

  • No PMI required
  • High loan limits
  • Special consideration for payments on student debt
  • 100 percent financing, depending on the lender’s program

Doctors applying for a physician loan can sometimes even get approved before they have even started working at a job. 

The cons should be considered, as well, though many don’t feel they outweigh the upside of physician loans. Cons include:

  • Higher interest rates, sometimes
  • The possibility of spending too much with higher limits
  • Some lenders requiring that borrowers open accounts 

If you feel the pros outperform the cons, then a doctor mortgage may be a good choice for you. 

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5 Top New Mexico physician home loan lenders

If you’re in the market for a home in New Mexico, consider these physician mortgage loans that are available to state residents.

1. Huntington Bank

Huntington Bank is the 26th largest bank in the United States. Operating primarily out of the Midwest, their mortgage group can service a large part of the country. Huntington has a competitive physician loan product with no money down financing options.

We contacted a loan officer at Huntington Bank to gather information about the doctor mortgage and here’s what we heard back:

  • 0% down payment up to $1 million
  • 5% down payment up to $1.25 million
  • 10% down payment up to $2 million
  • Maximum financing up to $2 million
  • Eligible degrees are: MD, DO, DDS, DVM or DMD
  • Full time medical residents are eligible
  • Minimum credit score is 700
  • 2 months reserves required (6 months for jumbo loans) – reserves can be held in bank or investment accounts
  • Gift funds for down payment are OK
  • 30-year and 15-year fixed-rate mortgages
  • ARMs available in 7/6, 10/6 or 15/6 terms
  • Can close on the strength of a new employment contract without paystubs
  • No private mortgage insurance
  • No prepayment penalty

When you’re ready to connect with a loan officer experienced in doctor mortgages, use our form to quickly match with eligible loan programs based on your specific circumstances.

2. Keybank

Keybank has over $170 billion in assets and is the 24th largest bank in the Untied States. They operate throughout 39 states but can originate mortgages in nearly all 50, making them a popular choice among medical doctors throughout the country. One of their key financial products is a physician loan.

While Keybank doesn’t post a lot of information about their doctor mortgage online, we were able to get in touch with a loan officer at the bank to get all the important details. See below for an overview of the program details:

  • 0% down up to $1,000,000
  • 5% down up to $1,500,000
  • 15% down up to $2,000,000
  • No private mortgage insurance
  • Gifts permitted for down payments
  • Can close on the strength of an employment contract up to 90 days prior to the start of employment
  • Minimum qualifying credit score is 700
  • Student loan debt can be calculated based on income driven student loan payments
  • Fixed loans offered in 10, 15, 20, 25 or 30-year terms
  • Adjustable-rate mortgages offered in 5/6, 7/6 and 10/6 options
  • No minimum or maximum years in practice for eligibility
  • Reserve requirements are: 2 months (loans under $500K), 4 months (loans between $500K – $750L), 6 months for loans over $750K plus an additional 2 months if closing prior to start date. Retirement accounts count toward reserve requirements.
  • US Citizens, Permanent Residents and H1B Visa holders are eligible
  • California loans require a minimum of 5% down

When you’re ready to connect with a loan officer experienced in doctor mortgages, use our form to quickly match with eligible loan programs based on your specific circumstances.

3. City National Bank of Florida

City National Bank of Florida is a medium-sized bank with over $22 billion in assets. Although they are headquartered in Florida, they offer a physician loan in the state of New Mexico and all 48 contiguous states and are eager to find physicians and other professionals as new customers.

We spoke with a loan officer at City National Bank of Florida to gather details on the doctor mortgage program. Here is what we learned:

  • Primary care and specialty physicians, Dentists, Attorneys and CPAs are eligible
  • 3% down up to $650,000
  • 5% down up to $850,000
  • 10% down up to $1,250,000
  • 10.51% down up to $2,500,000
  • 15.51% down up to $3,000,000
  • Primary residence and vacation homes are available (higher down payments required for secondary houses)
  • Can finance condos but only with a 20% down payment
  • Minimum credit score required is 660 but better rates/options require 720 credit score
  • Self-employed individuals need to provide 2 years of income verification

When you’re ready to connect with a loan officer experienced in doctor mortgages, use our form to quickly match with eligible loan programs based on your specific circumstances.

4. Citizens Bank

Citizens Bank is one of the largest banks in the United States. I bet you didn’t know that it’s headquartered in the smallest state: Rhode Island. With over $160 billion in assets, it’s no surprise that Citizens offers a full range of financial products, including a physician loan.

We contacted a loan officer at Citizens Bank to learn more about their doctor loan program specifically. Here are details you won’t find anywhere else:

  • 5% down up to $850,000
  • 10% down up to $1,000,000
  • Practicing licensed medical doctors (MD and DO – Oseteopathy), dentists (DDS and DMD), residents and research physicians are eligible
  • Licensed residents, fellows and interns can borrow a maximum of $600,00 (or $400,000 if unlicensed)
  • No more than 10 years out of residency
  • Self-employed health care providers are eligible with a two-year history of self-employment income
  • New medical professional graduates who are under contract for residency within 60 days of closing and have not yet obtained a license are eligible
  • No private mortgage insurance
  • 40% max debt-to-income ratio
  • Student loan debt that’s deferred for more than 12 months from the date of closing can be excluded from DTI calculations
  • Construction-to-permanent loans available with a maximum of 89% financing
  • Fixed rate or adjustable-rate mortgage options
  • Interest-only option on certain adjustable-rate mortgage options (max financing at 89%)

When you’re ready to connect with a loan officer experienced in doctor mortgages, use our form to quickly match with eligible loan programs based on your specific circumstances.

5. Flagstar Bank

Flagstar Bank was chartered in 1987 and holds around $23 billion in assets, making it a medium-sized bank. However, they punch well above their weight when it comes to mortgages and operate as the sixth largest bank mortgage originator nationally. Not surprisingly, a big part of their success has been a doctor mortgage program.

We contacted Flagstar Bank to learn more details about their physician loan. Here are the key terms that you need to know?

  • 5, 7 & 10 year ARM  products
  • 0% down up to $1,000,000 (first time homebuyer – have not owned in last 3 years)
  • 5% down up to $1,500,000 (first time homebuyer – have not owned in last 3 years)
  • If not a first-time home buyer
  • 10% down up to $1,000,000
  • 15% down up to $1,500,000
  • 20% down up to $2,000,000
  • 25% down up to $2,500,000
  • Fixed products
  • 10% down on the jumbo fixed to a max loan amount of $1,000,000 with no PMI
  • 20% down on the jumbo 30 year fixed with a max loan amount of $3,000,000
  • For first time home buyer (have not owned within last 3 years):
  • 3% down up to $647,200
  • If not a first time home buyer:
  • 5% down up to county limit (with and without PMI)
  • Medical doctors and lawyers are eligible. We weren’t able to confirm that the program is available to dentists and other (non-doctor) medical professionals, but encourage you to contact them to confirm.

The total reported lender fees as of the date of this article were $1395 ($550 processing and $845 for underwriting).

Another benefit of Flagstar is that they can submit a full file to underwriting for an actual loan approval (not pre-approval) without having a purchase contract signed, which makes you competitive with all cash offers and the process less stressful for you. There is no application fee or prepayment penalties. They also offer a float down, buy down, and recast option.

When you’re ready to connect with a loan officer experienced in doctor mortgages, use our form to quickly match with eligible loan programs based on your specific circumstances.

Is a New Mexico physician mortgage loan right for you?

Is a New Mexico physician loan right for you? It may be, if you have some of the issues that are so specific to professionals. For example, you may have a good deal of education loans. A physician loan will give that debt special consideration, while a conventional lender will not, affecting your chances of approval. 

You also need to consider where you are in your career. If you are staying in your job in the long term and convinced you want to stay in your region of New Mexico, investing in a new home with a physician loan is a great idea.  

Examples of doctors who take out physician loans in New Mexico

Doctors who take out New Mexico physician loans all share some common narratives. They are professionals who experience a unique set of circumstances that make these mortgages such a great solution for them. 

An obstetrician who has too much student debt

Becoming an OB-GYN took a lot of effort and more than a few student loans, but Patrick got through. Now that he is starting his residency in obstetrics at UNM Hospital, he is ready to find a home in his new hometown. His medical school debt is not appealing to most conventional lawyers, however, and he has been told they can’t approve him for a mortgage. Patrick heard from another resident at the hospital about a lender offering mortgages tailored to a doctor’s unique financial profile. This lender knows that Patrick’s debt isn’t a mark on his financial record, and they will give it special consideration. 

Doctor who doesn’t have a down payment

With prices the way they are in Santa Fe right now, there is little chance that Jermaine will save up for a down payment in the near future. While he has some money put by, he will need a few years to get to the 100k he will need to save for a 20 percent down payment on a conventional loan. Rather than wait, he has decided to take advantage of a doctor mortgage that offers 100 percent financing. 

Looking for a physician loan in a different state?

If you’re looking to explore the best physician loans in other states, click on your state below.

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Joshua Holt

Joshua Holt is a licensed mortgage loan originator (NMLS #2306824) and founder of Biglaw Investor. His mortgage expertise lies in the areas of professional mortgage loans, particularly for lawyers, doctors and other high-income professionals. Prior to Biglaw Investor, Josh practiced private equity mergers & acquisition law for one of the largest law firms in the country.

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