DSCR Loans in New Mexico

A DSCR (debt-service coverage ratio) loan qualifies you on the rental property's cash flow instead of your personal income or tax returns. Lenders compare the property's monthly rent to its monthly payment — no W-2s, pay stubs, or employment verification required.

On a median-value New Mexico home at 75% LTV, the typical rent in Albuquerque, NM is $1,502/month against an estimated principal-and-interest payment of $1,616 — a 0.93x coverage ratio. That means the median deal doesn't fully cover the payment; taxes, insurance, and HOA aren't included, so lender-calculated DSCR will run lower. Actual coverage depends on your specific property and rent.

Most DSCR lenders look for a 640+ credit score, though pricing improves at 700+. Because approval is driven by the property's cash flow, a lower DSCR ratio can sometimes be offset with stronger credit or a larger down payment.

Typical DSCR down payments run 20–25% (75–80% LTV) for single-family and small multifamily rentals. The figures on this page assume 75% LTV. Lower LTV usually means easier qualification and better pricing.

Many DSCR programs allow short-term and mid-term rental income (using projected or market rent) in addition to standard long-term leases, though overlays vary by lender and by New Mexico market. Bring your specific property and we'll match it to a program.