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Home Mortgage Rates in New Mexico

Aerial View of Albuquerque, New Mexico From the Sandia Mountains.

New Mexico residents have an expansive range of mortgages to choose from. These mortgages are regulated by special laws and procedures that have helped the New Mexico housing market stay relatively stable over the past three years. As a result, people who are interested in learning about the New Mexico foreclosure process should first learn something about how the mortgage process works in New Mexico.

Here is a guide about the New Mexico mortgage process. It includes information on the types of mortgages that are available in New Mexico. It also describes how those mortgages are regulated by state law and how the foreclosure process works on defaulted mortgages in New Mexico.

To gain a better understanding of these topics, here is some background information about New Mexico’s home value and population trends:

General information about New Mexico's home value trends

Here are two trends that are important to understand when assessing information about New Mexico's home values:

First, Median home values in New Mexico vary considerably.

Downtown Albuquerque, New Mexico.

Values for single-family homes in New Mexico vary considerably. Home values vary considerably in New Mexico because the demand for housing in New Mexico is directly proportional to the yearly median income residents earn. To demonstrate this, here are the 2009 median home values for New Mexico's three biggest cities: Albuquerque, Las Cruces and Santa Fe.

  • Albuquerque: $218,543.
  • Las Cruces: $164,989.
  • Santa Fe: $358,000.

Furthermore, New Mexico median home values also vary considerably against the nationwide median price for a single-family home. New Mexico's median home value prices vary considerably against the nationwide median price of $179,900. As you can see from Albuquerque and Santa Fe's median home values, cities with larger populations and incomes tend to have home values that are significantly above the national median price.

On the other hand, Las Cruces’ lower-than average median home value demonstrates that smaller New Mexico cities with lower yearly median incomes tend to have median home values that are lower than the national median price.

Places to Live

Metropolitan Areas

NM Rank US Rank Metropolitan Area 2016 Pop 2010 Pop Change % △
1 60 Albuquerque 909,906 887,077 22,829 2.57%
2 209 Las Cruces 214,207 209,233 4,974 2.38%
3 285 Santa Fe 148,651 144,170 4,481 3.11%
4 350 Farmington 115,079 130,044 -14,965 -11.51%
5 465 Gallup 74,923 71,492 3,431 4.80%
6 481 Hobbs 69,749 64,727 5,022 7.76%
7 498 Alamogordo 65,410 63,797 1,613 2.53%
8 499 Roswell 65,282 65,645 -363 -0.55%
9 542 Carlsbad-Artesia 57,621 53,829 3,792 7.04%
10 593 Clovis 50,280 48,376 1,904 3.94%
11 696 Española 40,040 40,246 -206 -0.51%
12 786 Taos 33,065 32,937 128 0.39%
13 831 Silver City 28,280 29,514 -1,234 -4.18%
14 837 Las Vegas 27,760 29,393 -1,633 -5.56%
15 840 Grants 27,487 27,213 274 1.01%
16 869 Deming 24,450 25,095 -645 -2.57%
17 908 Ruidoso 19,429 20,497 -1,068 -5.21%
18 910 Portales 19,082 19,846 -764 -3.85%
19 913 Los Alamos 18,147 17,950 197 1.10%

General information about New Mexico's population trends

New Mexico's most popular cities are places where there are more opportunities for employment. As most of New Mexico's population still resides in rural areas, New Mexico's three most popular cities are places whose job bases are the most stable. As a result, Albuquerque (545,852), Las Cruces (97,618) and Santa Fe (67,947) have bigger populations than other New Mexico cities because they have more stable job bases. (The population data are by courtesy of the 2010 U.S. Census.)

These cities also enjoy a higher quality of life than other cities in New Mexico because they are cleaner, well-organized and offer better schools than other New Mexico cities.

In addition, three cities in New Mexico are quickly growing because they have seen an expansion in the job base and income earning potential and other perks. Here they are (with year 2010 U.S Census populations in parenthesis):

Rio Rancho (87,521). This Albuquerque suburb is the fastest growing city in New Mexico because it offers residents lower taxes, lower crime rates and cheaper land to build houses.

Hot Air Balloons Flying Over Rio Rancho, New Mexico.

Las Cruces (97,618). This city in Southeastern New Mexico is home to New Mexico State University and to many government agencies. An increase in government spending for a proposed spaceport in the area has made Las Cruces one of the fast growing cities in New Mexico.

Aerial View of Las Cruces, New Mexico.

Albuquerque (545,852). Albuquerque is one of the fastest growing cities in the state and the nation because it has been relatively unaffected by the recession. Furthermore, many companies are relocating to Albuquerque to take advantage of better tax rates and lower costs of doing business. As a result, Albuquerque is seeing its population grow more quickly than other cities in the nation.

Albuquerque Skyline.

New Mexico Census Data

According to the United States Census an estimated 1,334,795 people live in the state of New Mexico. The state has 121,298.15 mi² of land area, which gave it a population density of 11.0 per mi². Here is a list of cities, towns, villages & Census Designated Places with more than 500 residents, with their estimated population as of June 2016 & the 2010 United States Census. For Census Designated Places (CDP) where there was no population estimate available for 2016 the 2011-2015 American Community Survey 5-Year Estimates data was used.

All table columns are sortable. Click on the column headers to sort by that column. Click again to sort low to high. Cities with higher levels of population growth typically see the increased demand drive faster real estate price appreciation.

Rank Geography 2016 Pop 2010 Pop Change % △ County Land mi² Pop Den mi²
1 Albuquerque 559,277 545,852 13,425 2.46% Bernalillo 187.73 2,979.16
2 Las Cruces 101,759 97,618 4,141 4.24% Doña Ana 76.49 1,330.36
3 Rio Rancho 96,028 87,521 8,507 9.72% Sandoval & Bernalillo 103.35 929.15
4 Santa Fe 83,875 67,947 15,928 23.44% Santa Fe 45.98 1,824.16
5 Roswell 48,184 48,366 -182 -0.38% Chaves 29.86 1,613.66
South Valley CDP 41,660 40,976 684 1.67% Bernalillo 28.8 1,446.53
6 Farmington 41,629 45,877 -4,248 -9.26% San Juan 31.51 1,321.14
7 Clovis 39,373 37,775 1,598 4.23% Curry 22.71 1,733.73
8 Hobbs 38,143 34,122 4,021 11.78% Lea 23.96 1,591.94
9 Alamogordo 31,283 30,403 880 2.89% Otero 21.43 1,459.78
10 Carlsbad 28,914 26,138 2,776 10.62% Eddy 28.94 999.10
11 Gallup 22,670 21,678 992 4.58% McKinley 18.91 1,198.84
12 Sunland Park 16,544 14,106 2,438 17.28% Doña Ana 11.4 1,451.23
13 Los Lunas 15,454 14,835 619 4.17% Valencia 14.63 1,056.32
14 Deming 14,488 14,855 -367 -2.47% Luna 16.24 892.12
Chaparral CDP 13,629 14,631 -1,002 -6.85% Otero & Doña Ana 59.23 230.10
15 Las Vegas 13,285 13,753 -468 -3.40% San Miguel 7.59 1,750.33
16 Artesia 12,232 11,301 931 8.24% Eddy 9.92 1,233.06
17 Portales 11,989 12,280 -291 -2.37% Roosevelt 7.06 1,698.16
Los Alamos CDP 11,815 12,019 -204 -1.70% Los Alamos 11.14 1,060.59
18 Lovington 11,399 11,009 390 3.54% Lea 4.74 2,404.85
North Valley CDP 11,221 11,333 -112 -0.99% Bernalillo 7.01 1,600.71
19 Española 10,138 10,224 -86 -0.84% Rio Arriba & Sante Fe 7.85 1,291.46
20 Silver City 9,907 10,315 -408 -3.96% Grant 10.13 977.99
Zuni Pueblo CDP 9,494 6,302 3,192 50.65% McKinley 8.85 1,072.77
21 Anthony 9,330 9,360 -30 -0.32% Doña Ana 3.96 2,356.06
22 Grants 9,298 9,182 116 1.26% Cibola 14.86 625.71
23 Bernalillo 9,202 8,320 882 10.60% Sandoval 4.78 1,925.10
24 Socorro 8,612 9,051 -439 -4.85% Socorro 14.39 598.47
25 Corrales 8,586 8,329 257 3.09% Sandoval 10.53 815.38
Shiprock CDP 8,496 8,295 201 2.42% San Juan 13.44 632.14
26 Ruidoso 7,770 8,029 -259 -3.23% Lincoln 16.12 482.01
27 Belen 7,122 7,269 -147 -2.02% Valencia 8.29 859.11
28 Bloomfield 7,090 8,112 -1,022 -12.60% San Juan 7.91 896.33
Eldorado at Santa Fe CDP 6,486 6,130 356 5.81% Santa Fe 20.81 311.68
Lee Acres CDP 6,480 5,858 622 10.62% San Juan 12.86 503.89
29 Raton 6,103 6,885 -782 -11.36% Colfax 7.96 766.71
30 Los Ranchos de Albuquerque 6,062 6,024 38 0.63% Bernalillo 4.35 1,393.56
North Hobbs CDP 6,034 5,391 643 11.93% Lea 26.02 231.90
31 Truth or Consequences 6,023 6,475 -452 -6.98% Sierra 27.57 218.46
32 Aztec 5,960 6,763 -803 -11.87% San Juan 12.53 475.66
White Rock CDP 5,927 5,725 202 3.53% Los Alamos 7.05 840.71
33 Taos 5,763 5,716 47 0.82% Taos 5.7 1,011.05
Los Chaves CDP 5,067 5,446 -379 -6.96% Valencia 10.23 495.31
34 Tucumcari 4,975 5,363 -388 -7.23% Quay 9.49 524.24
Placitas CDP 4,917 4,977 -60 -1.21% Sandoval 29.7 165.56
Meadow Lake CDP 4,813 4,708 105 2.23% Valencia 11.54 417.07
Paradise Hills CDP 4,733 4,256 477 11.21% Bernalillo 1.01 4,686.14
Santa Teresa CDP 4,710 4,258 452 10.62% Doña Ana 10.81 435.71
35 Rio Communities 4,653 4,723 -70 -1.48% Valencia 6.26 743.29
El Cerro Mission CDP 4,547 4,657 -110 -2.36% Valencia 5.88 773.30
Holloman AFB CDP 4,112 3,054 1,058 34.64% Otero 12.47 329.75
36 Bosque Farms 3,820 3,904 -84 -2.15% Valencia 3.97 962.22
37 Edgewood 3,805 3,735 70 1.87% Santa Fe, Bernalillo & Sandoval 48.7 78.13
38 Peralta 3,565 3,660 -95 -2.60% Valencia 4.46 799.33
Sandia Heights CDP 3,377 3,193 184 5.76% Bernalillo 1.93 1,749.74
University Park CDP 3,276 4,192 -916 -21.85% Doña Ana 1.55 2,113.55
39 Milan 3,234 3,245 -11 -0.34% Cibola 4.34 745.16
San Felipe Pueblo CDP 3,167 2,404 763 31.74% Sandoval 11.98 264.36
40 Eunice 3,022 2,922 100 3.42% Lea 3.01 1,003.99
El Cerro CDP 2,965 2,953 12 0.41% Valencia 4.24 699.29
41 Tularosa 2,912 2,842 70 2.46% Otero 2.81 1,036.30
La Cienega CDP 2,884 3,819 -935 -24.48% Santa Fe 11.85 243.38
West Hammond CDP 2,867 2,790 77 2.76% San Juan 7.46 384.32
Agua Fria CDP 2,857 2,800 57 2.04% Santa Fe 2.54 1,124.80
42 Clayton 2,763 2,980 -217 -7.28% Union 8.12 340.27
Vado CDP 2,681 3,194 -513 -16.06% Doña Ana 2.98 899.66
43 Santa Rosa 2,680 2,848 -168 -5.90% Guadalupe 4.97 539.24
Santo Domingo Pueblo CDP 2,665 2,456 209 8.51% Sandoval 2.06 1,293.69
44 Ruidoso Downs 2,576 2,815 -239 -8.49% Lincoln 3.79 679.68
Cannon AFB CDP 2,575 2,245 330 14.70% Curry 5.8 443.97
Crownpoint CDP 2,565 2,278 287 12.60% McKinley 7.05 363.83
Dulce CDP 2,499 2,743 -244 -8.90% Rio Arriba 12.81 195.08
45 Lordsburg 2,463 2,797 -334 -11.94% Hidalgo 8.39 293.56
Ranchos de Taos CDP 2,435 2,518 -83 -3.30% Taos 3.62 672.65
San Ysidro CDP 2,432 2,090 342 16.36% Doña Ana 2.65 917.74
Chimayo CDP 2,369 3,177 -808 -25.43% Rio Arriba & Sante Fe 8.59 275.79
Valencia CDP 2,295 2,192 103 4.70% Valencia 2 1,147.50
46 Bayard 2,235 2,328 -93 -3.99% Grant 0.95 2,352.63
Pojoaque CDP 2,202 1,907 295 15.47% Santa Fe 4.37 503.89
La Mesilla CDP 2,134 1,772 362 20.43% Rio Arriba 4.47 477.40
47 Jal 2,121 2,047 74 3.62% Lea 4.59 462.09
Boles Acres CDP 2,053 1,638 415 25.34% Otero 12.17 168.69
Flora Vista CDP 2,040 2,191 -151 -6.89% San Juan 4.62 441.56
Jarales CDP 2,000 2,475 -475 -19.19% Valencia 8.68 230.41
Las Maravillas CDP 1,994 1,628 366 22.48% Valencia 1.02 1,954.90
Jemez Pueblo CDP 1,969 1,788 181 10.12% Sandoval 2.04 965.20
Navajo CDP 1,918 1,645 273 16.60% McKinley 2.25 852.44
Nambe CDP 1,906 1,818 88 4.84% Santa Fe 8.69 219.33
Tome CDP 1,855 1,867 -12 -0.64% Valencia 4.95 374.75
48 Mesilla 1,855 2,196 -341 -15.53% Doña Ana 6.74 275.22
La Luz CDP 1,837 1,697 140 8.25% Otero 10.7 171.68
Keeler Farm CDP 1,823 1,305 518 39.69% Luna 11.39 160.05
49 Moriarty 1,786 1,910 -124 -6.49% Torrance 5.84 305.82
Waterflow CDP 1,784 1,670 114 6.83% San Juan 8.32 214.42
Berino CDP 1,775 1,441 334 23.18% Doña Ana 0.93 1,908.60
50 Questa 1,754 1,770 -16 -0.90% Taos 5.13 341.91
51 Santa Clara 1,751 1,686 65 3.86% Grant 1.28 1,367.97
Monterey Park CDP 1,697 1,567 130 8.30% Valencia 2.62 647.71
Carnuel CDP 1,687 1,232 455 36.93% Bernalillo 5.4 312.41
Upper Fruitland CDP 1,660 1,662 -2 -0.12% San Juan 7.43 223.42
52 Columbus 1,623 1,664 -41 -2.46% Luna 2.79 581.72
Black Rock CDP 1,613 1,323 290 21.92% McKinley 1.69 954.44
53 Hatch 1,590 1,648 -58 -3.52% Doña Ana 2.48 641.13
Spencerville CDP 1,587 1,258 329 26.15% San Juan 3.34 475.15
54 Estancia 1,584 1,655 -71 -4.29% Torrance 5.75 275.48
Thoreau CDP 1,570 1,865 -295 -15.82% McKinley 15.91 98.68
White Sands CDP 1,567 1,651 -84 -5.09% Doña Ana 3.09 507.12
La Union CDP 1,561 1,106 455 41.14% Doña Ana 4.14 377.05
Ohkay Owingeh CDP 1,531 1,143 388 33.95%  Rio Arriba 3.84 398.70
Arenas Valley CDP 1,524 1,522 2 0.13% Grant 4.07 374.45
Mescalero CDP 1,520 1,338 182 13.60% Otero 17.89 84.96
Laguna CDP 1,510 1,241 269 21.68% Cibola 10.94 138.03
Sandia Knolls CDP 1,486 1,208 278 23.01% Bernalillo 2.78 534.53
Radium Springs CDP 1,400 1,699 -299 -17.60% Doña Ana 5.98 234.11
55 Loving 1,395 1,413 -18 -1.27% Eddy 1.17 1,192.31
56 Capitan 1,388 1,489 -101 -6.78% Lincoln 3.22 431.06
Indian Hills CDP 1,374 892 482 54.04% Torrance 5.71 240.63
57 Elephant Butte 1,341 1,431 -90 -6.29% Sierra 4.29 312.59
Sausal CDP 1,322 1,056 266 25.19% Valencia 2.28 579.82
Doña Ana CDP 1,313 1,211 102 8.42% Doña Ana 0.64 2,051.56
58 Pecos 1,313 1,392 -79 -5.68% San Miguel 1.74 754.60
El Valle de Arroyo Seco CDP 1,291 1,440 -149 -10.35% Santa Fe 5.19 248.75
59 Dexter 1,264 1,266 -2 -0.16% Chaves 0.74 1,708.11
60 Hagerman 1,244 1,257 -13 -1.03% Chaves 1.38 901.45
61 Hurley 1,240 1,297 -57 -4.39% Grant 1.02 1,215.69
Skyline-Ganipa CDP 1,232 1,224 8 0.65% Cibola 6.15 200.33
Ponderosa Pine CDP 1,225 1,195 30 2.51% Bernalillo 8.07 151.80
El Rancho CDP 1,219 1,199 20 1.67% Santa Fe 2.1 580.48
San Miguel CDP 1,213 1,153 60 5.20% Doña Ana 2.29 529.69
La Villita CDP 1,153 957 196 20.48% Rio Arriba 1.36 847.79
La Huerta CDP 1,116 1,246 -130 -10.43% Eddy 1.56 715.38
62 Angel Fire 1,113 1,216 -103 -8.47% Colfax 28.93 38.47
63 Texico 1,110 1,130 -20 -1.77% Curry 0.83 1,337.35
Taos Pueblo CDP 1,098 1,135 -37 -3.26% Taos 15.59 70.43
Santa Clara Pueblo CDP 1,086 1,018 68 6.68% Rio Arriba 2.02 537.62
Midway CDP 1,065 971 94 9.68% Chaves 2.49 427.71
San Rafael CDP 1,055 933 122 13.08% Cibola 10.32 102.23
El Rito CDP 1,051 808 243 30.07% Rio Arriba 4.11 255.72
Church Rock CDP 1,051 1,128 -77 -6.83% McKinley 2.31 454.98
San Pablo CDP 1,042 806 236 29.28% Doña Ana 1.22 854.10
Fairacres CDP 1,030 824 206 25.00% Doña Ana 2.11 488.15
64 Chama 1,018 1,022 -4 -0.39% Rio Arriba 2.67 381.27
Talpa CDP 1,014 778 236 30.33% Taos 1.31 774.05
Dixon CDP 1,009 926 83 8.96% Rio Arriba 11.53 87.51
Tohatchi CDP 1,004 808 196 24.26% McKinley 6.15 163.25
La Puebla CDP 1,000 1,186 -186 -15.68% Santa Fe 3.04 328.95
Chamita CDP 987 870 117 13.45% Rio Arriba 3.85 256.36
Salem CDP 975 942 33 3.50% Doña Ana 1.2 812.50
El Duende CDP 972 707 265 37.48% Rio Arriba 1.47 661.22
Tesuque CDP 961 925 36 3.89% Santa Fe 5.69 168.89
65 Logan 954 1,042 -88 -8.45% Quay 9.54 100.00
San Antonito CDP 952 985 -33 -3.35% Bernalillo 2.44 390.16
66 Carrizozo 938 996 -58 -5.82% Lincoln 8.36 112.20
Hernandez CDP 937 946 -9 -0.95% Rio Arriba 1.7 551.18
Algodones CDP 932 814 118 14.50% Sandoval 7.19 129.62
67 Springer 929 1,047 -118 -11.27% Colfax 1.47 631.97
Chamberino CDP 923 919 4 0.44% Doña Ana 3.06 301.63
Cedar Crest CDP 919 958 -39 -4.07% Bernalillo 3.12 294.55
68 Fort Sumner 915 1,031 -116 -11.25% De Baca 3.31 276.44
Twin Lakes CDP 908 1,052 -144 -13.69% McKinley 9.02 100.67
69 Cimarron 899 1,021 -122 -11.95% Colfax 2 449.50
70 Magdalena 898 938 -40 -4.26% Socorro 6.26 143.45
Arroyo Seco CDP 888 1,785 -897 -50.25% Taos 6.82 130.21
La Mesa CDP 887 728 159 21.84% Doña Ana 2.37 374.26
Zia Pueblo CDP 879 737 142 19.27% Sandoval 27.03 32.52
71 Mountainair 866 928 -62 -6.68% Torrance 1.07 809.35
Sedillo CDP 851 802 49 6.11% Bernalillo 2.74 310.58
Happy Valley CDP 850 519 331 63.78% Eddy 2.16 393.52
Adelino CDP 841 823 18 2.19% Valencia 2.75 305.82
72 Tatum 827 798 29 3.63% Lea 1.58 523.42
Paraje CDP 817 777 40 5.15% Cibola 5.57 146.68
Nenahnezad CDP 812 688 124 18.02% San Juan 3.48 233.33
McIntosh CDP 809 1,484 -675 -45.49% Torrance 22.27 36.33
La Plata CDP 751 612 139 22.71% San Juan 10.15 73.99
Mora CDP 751 656 95 14.48% Mora 7.98 94.11
73 Cuba 740 731 9 1.23% Sandoval 3.38 218.93
Mimbres CDP 737 667 70 10.49% Grant 4.44 165.99
Atoka CDP 727 1,077 -350 -32.50% Eddy 6.76 107.54
Pueblitos CDP 708 794 -86 -10.83% Valencia 2.14 330.84
San Ildefonso Pueblo CDP 699 524 175 33.40% Santa Fe 4.45 157.08
74 Cloudcroft 693 674 19 2.82% Otero 1.56 444.23
Cedar Hill CDP 693 847 -154 -18.18% San Juan 5.35 129.53
Napi Headquarters CDP 688 727 -39 -5.36% San Juan 3.62 190.06
Highland Meadows CDP 688 624 64 10.26% Valencia 7.01 98.15
Placitas CDP 678 576 102 17.71% Doña Ana 0.14 4,842.86
La Hacienda CDP 671 725 -54 -7.45% Luna 1.35 497.04
Cedar Grove CDP 669 747 -78 -10.44% Santa Fe 18.03 37.10
Ojo Amarillo CDP 659 766 -107 -13.97% San Juan 1.96 336.22
Chili CDP 648 654 -6 -0.92% Rio Arriba 3.28 197.56
Livingston Wheeler CDP 645 609 36 5.91% Eddy 1.63 395.71
Santa Ana Pueblo CDP 645 610 35 5.74% Sandoval 7.02 91.88
75 Melrose 642 651 -9 -1.38% Curry 1.69 379.88
Mesita CDP 627 804 -177 -22.01% Cibola 10.7 58.60
Alamo CDP 607 1,085 -478 -44.06% Socorro 39.17 15.50
Cochiti Lake CDP 590 569 21 3.69% Sandoval 1.24 475.81
Peña Blanca CDP 584 709 -125 -17.63% Sandoval 6.89 84.76
Madrone CDP 577 707 -130 -18.39% Valencia 3.08 187.34
East Pecos CDP 569 757 -188 -24.83% San Miguel 3.6 158.06
76 Kirtland 564 7,875 -7,311 -92.84% San Juan 14.21 39.69
Mesquite CDP 563 1,112 -549 -49.37% Doña Ana 0.82 686.59
High Rolls CDP 558 834 -276 -33.09% Otero 15.41 36.21
Cuyamungue CDP 548 479 69 14.41% Santa Fe 1.17 468.38
Tyrone CDP 545 637 -92 -14.44% Grant 0.34 1,602.94
77 Tijeras 543 541 2 0.37% Bernalillo 1.15 472.17
Peñasco CDP 527 589 -62 -10.53% Taos 1.22 431.97
Los Luceros CDP 523 906 -383 -42.27% Rio Arriba 1.63 320.86
Isleta Village Proper CDP 509 491 18 3.67% Bernalillo 0.27 1,885.19

Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2016
Source: U.S. Census Bureau, Population Division
Release Date: May 2017.

Mortgages New Mexico's lenders offer

As of 2017 the conforming loan limit across the United States is set to $424,100, with a ceiling of 150% that amount in areas where median home values are higher. High local affordability makes the $424,100 ceiling apply statewide for single unit homes. Dual unit homes have a limit of $543,000, triple unit homes have a limit of $656,350 & quadruple unit homes have a limit of $815,650. People buying premium properties in the Albuquerque metro area may be above these thresholds, requiring a jumbo loan. Jumbo loans typically have a slightly higher rate of interest than conforming mortgages, though spreads vary based on credit market conditions.

New Mexico offers a traditional line of home loans to consumers. Here is a list of home loans that New Mexico lenders offer to consumers:

  • Fixed rate loans that range in maturity from 15-50 years.
  • Jumbo loans for homes priced over $417,000.
  • Adjustable Rate Mortgage (ARM) loans.
  • Veteran's Administration loans for U.S military veterans.

These loans are usually recognized in New Mexico as mortgage instruments (source). This is true because unless a homebuyer explicitly allows a deed of trust to go into effect, the homebuyer may opt to use a mortgage contract to govern the terms of the loan.

The reason for this is there are several state laws that govern home loans that recognize them as either being mortgages or deeds of trust. Since the New Mexico judicial system has not reached a clear agreement, it is possible for some home loans to be governed by New Mexico deeds of trust laws. This does not happen often in New Mexico, but it is something to consider if you are on the market for a foreclosed property in New Mexico.

USDA loans can help people with low incomes in rural parts of the state qualify for a subsidized low-interest loan.

Natural Disasters

Flood Insurance

Homeowner's insurance policies typically do not cover flooding. Most of the state of New Mexico is considered to have a very low flooding risk. Counties with relatively elevated risk profiles include:

  • Low risk: Bernalillo
  • Moderate risk: Chaves, Colfax, Curry, Grant, Rio Arriba, Sandoval, San Juan
  • High risk: Eddy, Lea
  • Very high risk: Otero, Valencia

Home buyers with mortgages in high-risk areas are required to buy flood insurance. Most flood insurance policies are sold by the United States federal government through The National Flood Insurance Program. Under-priced flood insurance in high-risk areas act as a subsidy to wealthy homeowners.

The NFIP does not charge nearly enough to cover the expected costs of its liabilities. The assessments are not sufficient to build any buffer to cover an extraordinary year, such as what occurred with Hurricane Katrina in 2005 or Hurricane Sandy in 2012. Because homeowners don€™t incur the full cost of building in a flood zone we end up with more houses there than if homeowners incurred the full cost of the flood risk, which exacerbates the government€™s costs in the next disaster.

Homeowners who live in lower risk areas & are not required to purchase flood insurance heavily cross-subsidize homeowners who are in areas where floods are more common.

Earthquakes

New Mexico has a moderate to high earthquake risk. Here are county-by-county risk profiles for counties with a risk level above very low.

  • Low risk: San Miguel
  • Moderate risk: Catron, Cibola, Colfax, Dona Ana, Grant, Hidalgo, Lincoln, Luna, Mckinley, Mora, Otero, Rio Arriba, Sandoval, Sierra, Torrance
  • High risk: Bernalillo, Santa Fe, Socorro, Taos, Valencia

Standard rental and homeowner insurance policies typically do not cover earthquake damage, though they usually cover losses caused by fires which resulted from an earthquake. You can supplement your homeowner's insurance with an earthquake policy.

New Mexico Foreclosure Laws

New Mexico Capitol Building in Santa Fe.

Furthermore, most New Mexico home loans have recourse methods that give the lender an opportunity to fully recover home loan proceeds. This means that if a house goes into foreclosure, the borrower is required to make up any difference between the auction price and the original amount of the loan.

The only home loans that do not have recourse methods available are home loans that are made available to low income residents. This is the case because many of the loans that are available to low income residents are guaranteed by the federal government. As a result, New Mexico foreclosure laws do not cover these properties.

New Mexico's foreclosure process on residential real estate properties is straightforward. Lenders who foreclose on homes have to follow a process in New Mexico that is straightforward. Most of the time, lenders may use judicial foreclosure to re-acquire a property. Here is how the process works:

  • The lender or trustee must first file a petition in district court to start the foreclosure process. In New Mexico, this entails starting the judicial foreclosure process. This is necessary because a lis pendens document must be attached to the property to legally start the foreclosure process. This legal document provides public notice that the property is being foreclosed upon. Without it, the foreclosure case cannot go forward.
  • After the lis pendens document has been obtained, formal notice is sent to borrower. If the borrower chooses to do nothing, the foreclosure process takes approximately 120-180 days to complete.
  • If the borrower does contest the foreclosure proceedings, the court must allow the borrower a chance to "redeem” the property. This means that before a final foreclosure judgment is granted, the court must give the borrower a redemption period that gives the borrower one last chance to pay off the entire loan plus any court costs, interest and legal fees.
  • New Mexico law gives borrowers anywhere from 30-270 days to "redeem" the property. As a general rule, most borrowers receive 90 days to redeem the property. If the borrower cannot do this, the court will then issue a final foreclosure judgment.
  • Once the petition is granted, the lender may then attempt to sell the home at auction. If the home goes up for auction, New Mexico law requires that the winning bid be at least 80% of the home's fair market value. This protects the borrower from buyers who try to buy homes at foreclosure sales from submitting unfairly low bids on the property.
  • If the home is sold for at least 80% of the home's fair market value, the home is sold and the borrower is on the hook for the difference. If the home does not sell for at least 80% of the home's fair market value, it may be re-listed until the home has reached a price that is at least 80% of fair market value.
  • This process can take between up to eight months to complete. As a result, many lenders try to work with borrowers to come up with repayment options to avoid foreclosure proceedings.

 

Sunset at Santa Fe Ski Basin .