With more UNESCO World Heritage Sites than any other state, New Mexico is a unique blend of history, culture, and natural beauty.
From its affordable property prices to a booming tourism industry and growing urban hubs, New Mexico offers foreign investors a wealth of opportunities for strong returns. In this guide, we’ll explore what makes this state a standout market and how you can take advantage of investment property loans to achieve your goals.
We are providing the following discussion to you for informational purposes only. All investments, including real estate, involve risk, and we encourage you to invest carefully. The information in this article is not intended to replace or serve as a substitute for any legal, real estate, tax, or other professional advice or service. You should consult with a professional in the respective legal, tax, accounting, real estate, or other professional area before making any decisions or entering into any contracts relating to a rental property.
A foreign national mortgage is a special loan for international investors. It allows you to buy property in the U.S., such as rental properties in New Mexico, without living there. Unlike traditional mortgages, this loan is a non-qualified mortgage (non-QM), meaning it doesn’t follow the usual rules for home loans that owner-occupants typically use.
Non-QM loans are more flexible. They allow for different types of documentation and qualifications, making it easier for foreign investors to purchase property in New Mexico and other states. This option simplifies the process compared to a traditional mortgage.
Finding the right property type is crucial for profitable real estate investing. Different property types can provide different returns, have varying levels of demand, and come with unique challenges. The local market also plays a big role—some areas may have more of one type of property than another, which can influence both the potential income and desirability.
By choosing the right property type for your goals, you can take advantage of the opportunities available in New Mexico and set yourself up for a successful investment. Here are some investment properties types:
When applying for a real estate investment loan in New Mexico as a foreign national, it's important to understand that different lenders have different criteria1. Some lenders may be more accommodating to international investors than others, so knowing what to expect can help you make an informed decision.
Here’s a breakdown of the key requirements most lenders have for foreign nationals, compared to the more flexible options available through Waltz, a foreign national-friendly lender:
Most lenders: U.S.-based income is generally less scrutinized than foreign income. Lenders will typically ask for proof of U.S. income or extensive documentation of your finances from your home country, such as W2 forms, business income, bank statements (possibly requiring a U.S. bank account), and other supporting documents.
Waltz: While we review both U.S. and international income, we make this process smoother by asking the right questions and gathering the necessary documents upfront. Unlike many lenders, we place more focus on the income generated from the rental property you wish to buy, rather than only looking at your personal finances.
Most lenders: Foreign nationals typically face higher down payment requirements, ranging from 30% to 50%. Many investors choose to pay cash instead of taking out a loan due to these high requirements. Some lenders may also have reserve requirements, which means having extra funds in your account to cover property vacancy or other potential issues.
Waltz: We generally require a 30% down payment, and in some cases, as low as 25%. Depending on your specific financial situation and the property you are interested in, we may not require any reserve funds at all.
Most lenders: Lenders will ask for proof of identification and your current address. If you're applying for an investment property loan, they may require that the loan be under an American LLC, with you as the personal guarantor.
Waltz: We use your passport to verify your identity, even if you’re from outside the U.S. We focus specifically on investment property loans, so we also require that the mortgage be taken out in the name of an LLC. The difference with Waltz is that we provide an Investor Kit, which includes an LLC with an EIN and a U.S. bank account, making the entire process easier for you.
Most lenders: Many lenders require a minimum U.S. credit score, often around 640. If you don’t have a U.S. credit score, it can be difficult to secure a mortgage as a foreign investor.
Waltz: Did you know that 50% of international investors opt to pay cash? That’s because it has traditionally been hard to get a loan without a U.S. credit score (among other reasons). Not with Waltz. We don’t require a U.S. credit score for foreign investors. Instead, we may use alternative methods such as reviewing international credit histories or evaluating your assets.
Find out how international investors have benefited from working with Waltz.
New Mexico is one potential location where foreign nationals can benefit from real estate diversity throughout the state. Here are a few reasons why people invest in this state:
New Mexico’s unique geography and economic factors offer both opportunities and challenges. Here’s what foreign investors should keep in mind:
Many real estate investors use debt-service-coverage-ratio (DSCR) loans. DSCR loans are tailored to foreign investors looking to buy income-generating properties. Unlike traditional loans, these do not rely on the borrower’s personal income. Instead, they focus on the cash flow the property generates.
DSCR loans provide tailored solutions to simplify your investment process. Here are the key benefits:
With Waltz’s DSCR loan options, international investors can bypass the typical barriers to purchasing U.S. property and take advantage of New Mexico’s unique real estate market.
Getting a DSCR mortgage in New Mexico may seem difficult as a foreign investor, but with Waltz, it's simpler than you might expect. Just follow these steps:
1. Find a profitable investment
Start by identifying a property with strong rental potential. Focus on areas that meet your investment criteria and financial goals.
2. Gather essential documents
Prepare key documents like a valid passport, proof of income (such as foreign bank statements or business financials), and property details. Lenders may also ask for proof of assets or a credit report from your home country.
3. Select a lender experienced with foreign nationals
Look for a lender who understands the needs of foreign investors. They should be familiar with challenges like verifying foreign income and handling the lack of a U.S. credit history. Waltz specializes in foreign national loans and can guide you through this process.
4. Set up an LLC and U.S. bank account
Most lenders will require you to form an LLC in the U.S. to qualify for a DSCR loan. You’ll also need a U.S. bank account for financial transactions. If you don’t have an Employer Identification Number (EIN) yet, setting up both can take time. However, with our Investor Kit, you can instantly establish an LLC and U.S. bank account2—saving you from months of waiting.
5. Submit your loan application
Before submitting your loan application, it's helpful to speak with an account executive who can answer any questions and guide you through the process. They’ll help streamline the application, ensuring you have all the necessary property details, financial documents, and proof of the property’s income potential. Once you've gathered everything, submitting your application should be quick and straightforward!
6. Perform due diligence
This step includes inspecting the property, getting an appraisal, and fulfilling any additional document requests from the lender to verify the property’s condition and value. You’ll also want to review your term sheet!
7. Complete the purchase process
Once due diligence is done and your loan is approved, it's time to finalize the transaction. Sign the required paperwork—if you're outside the U.S., this can potentially be done virtually. Finally, transfer the funds to close the deal, and you'll own a rental property in New Mexico!
