5 Best Physician Mortgage Loans in New Mexico

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. 

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. 

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.

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.

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.

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.

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.