Hard Money Loans in New Mexico

Designed for both experienced and first-time investors navigating New Mexico’s real estate market. Financing is available for up to 90% of the purchase price and 100% of the rehab costs.

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How Hard Money Loans Are Evaluated in New Mexico

When considering hard money loans in New Mexico, we take a clear and structured approach to evaluate each fix-and-flip opportunity.

Focus on Profitable Projects

We fund deals that show strong potential for success, including:

Loans up to 75% of After Repair Value (ARV)

Projects with at least 20% projected ROI

ARV supported by credible sold comps, not inflated listings

Our goal is to back projects where investors have a clear path to success.

Match Rehab Scope to Experience

Financing options grow as investors build their track record:

Beginner investors: Best suited for moderate rehabs (≤50% of purchase price)

Intermediate investors: With 1–2 completed projects, eligible for heavier rehabs (≤100% of purchase price)

Experienced investors: With 3–5+ completed projects, can pursue expansion or larger-scale projects

Rewarding Creditworthy Borrowers

Even though loans are asset-based, creditworthiness is important:

Strong credit is a key indicator of successful fix-and-flip projects

High credit utilization is common for investors and is acceptable for underwriting

Borrowers with a credit score above 660 are eligible for funding

Lending in Strong New Mexico Markets

Loan-to-ARV ratios are tailored to local market conditions:

Up to 75% LTARV in the strongest markets

More conservative leverage (e.g., 65% LTARV) in slower or declining submarkets

In 2025, key New Mexico markets such as Albuquerque, Santa Fe, and Las Cruces remain stable, with steady housing demand and moderate home price trends. Both new and experienced investors can access funding across the state.

New Mexico Hard Money Loan Products

New Mexico Fix & Flip Loan – Beginner Level

Perfect for first-time investors looking to handle small to moderate rehab projects with confidence.

Finance up to 90% of project cost and 100% of renovation with excellent credit (740+)
Up to 80% of purchase price plus full rehab for strong credit (720+)
Up to 75% of purchase price plus full rehab for good credit (660+)
Maximum 75% of after-repair value (ARV)
Interest rates between 10.75% – 11.25%
Origination fee starting at 2%
Loan range: $50,000 – $2,000,000
Best for projects where rehab costs are moderate (≤ 50% of purchase price)

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New Mexico Fix & Flip Loan – Intermediate Level

Tailored for investors with 1–2 projects completed, aiming for larger renovation goals.

Up to 90% of project cost and 100% of rehab with excellent credit (740+)
Finance up to 80% of purchase plus full rehab with good credit (680+)
Up to 75% of purchase price plus full rehab with fair credit (660+)
Maximum 75% of after-repair value
Interest rates range from 10.65% – 11.25%
Origination fee starts at 2%
Loan range: $50,000 – $2,500,000
Suitable for heavy rehab projects (up to 100% of purchase price)

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New Mexico Fix & Flip Loan – Pro Level

Designed for seasoned investors with 3–5+ projects, ready for larger and more complex renovations.

Up to 90% of project cost and full rehab with strong credit (720+)
Finance up to 85% of purchase plus full rehab with very good credit (680+)
Up to 80% of purchase price plus full rehab with fair credit (660+)
Maximum 75% of after-repair value
Interest rates: 10.5% – 10.75%
Origination fee from 1.5%
Loan range: $50,000 – $3,500,000
Perfect for large-scale renovations and expansion projects

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State
New Mexico

Loan Type
Fix and Flip Loan

Loan Amount
$221,000

Loan Amount (if applicable)
80% of Purchase + 100% Of Rehab

Rate
10.00%

Points
2.5%

New Mexico Deal Summary

A $221,000 hard money loan was provided to a first-time investor for the purchase and renovation of a 3-bedroom, 1-bathroom, 1,400 sq. ft. property in Albuquerque, NM.

The financing covered 80% of the purchase price and fully funded the $65,000 rehab budget, which focused on light cosmetic improvements such as updating the kitchen, refinishing hardwood floors, and enhancing curb appeal.

This was the borrower’s second investment in New Mexico. Although the returns were modest, the project remained profitable, so the loan was approved at 70% of the ARV. The investor contributed $39,000 as a down payment plus closing costs.

The loan request was submitted well in advance, allowing the deal to close on schedule without complications.

Frequently Asked Questions

How can I qualify for a hard money loan in New Mexico?

To be eligible for a hard money loan in New Mexico, you typically need to meet the following requirements:

A minimum credit score of 640 or higher

A profitable investment opportunity with at least a 10% return on investment (ROI)

A registered LLC or corporation in Texas

Which property types are eligible for hard money financing in New Mexico?

Hard money financing in New Mexico can be used for several types of real estate investments, such as:

Single-family and small residential properties (1–4 units)

Medium-sized multifamily properties (5–25 units)

Certain commercial real estate projects

What interest rates and loan terms are available for hard money loans in New Mexico?

Interest rates for hard money loans in Colorado typically vary based on the borrower’s experience and credit profile. Rates generally range between 10.5% and 11.5%. For fix-and-flip projects, the average rate is around 10.75%, offered as an interest-only loan with no prepayment penalty.

How is the loan-to-value (LTV) calculated for hard money loans in New Mexico?

The loan amount is determined using several factors related to the project and investor profile. In general, first-time investors may qualify for financing of up to 80% of the purchase price plus 100% of the renovation costs. More experienced investors can access higher leverage, with financing of up to 90% of the purchase price along with 100% of the rehab budget.

Can a hard money loan be used for rental properties in New Mexico?

Yes, a hard money loan can be used to acquire and renovate a rental property in Colorado. Once the property is stabilized, it can be refinanced into a DSCR loan. If the property is already rent-ready at the time of purchase, hard money financing may not be necessary, and you can move directly into DSCR financing.