What are Conventional Loans and Conforming Loans?

By definition, a Conventional Loan is any mortgage that’s not guaranteed or insured by the federal government. New Mexico conventional loans may be either “conforming” and “non-conforming”, although ‘conventional loans’ generally refer to ‘conforming loans’. Therefore New Mexico conventional loan limits are the same thing as New Mexico conforming loan limits.

New Mexico Conventional Loan Limits

What is the maximum amount that I can borrow?

Conventional loan limits in New Mexico are determined by:

  • New Mexico Conventional Loan LimitsMaximum LTV Ratio:  The maximum financing loan-to-value ratio for conventional mortgages is 80% – 97% of the appraised value of the home or its selling price, whichever is lower. Learn how to calculate loan-to-value.
  • Maximum Loan Amount: Conventional loan limits in New Mexico are set at the floor amount of $424,100 across the entire state. Metro areas in NM with a conforming limit of $424,100 include Albuquerque, Santa Fe, Las Cruces, Gallup, Taos, Roswell and Alamogordo.

Search all Conventional Loan Limits in New Mexico:

County Name
Area
1-Unit
2-Unit
3-Unit
4-Unit
BERNALILLOALBUQUERQUE, NM$424,100$543,000$656,350$815,650
CATRONNON-METRO$424,100$543,000$656,350$815,650
CHAVESROSWELL, NM$424,100$543,000$656,350$815,650
CIBOLAGRANTS, NM$424,100$543,000$656,350$815,650
COLFAXNON-METRO$424,100$543,000$656,350$815,650
CURRYCLOVIS, NM$424,100$543,000$656,350$815,650
DE BACANON-METRO$424,100$543,000$656,350$815,650
DONA ANALAS CRUCES, NM$424,100$543,000$656,350$815,650
EDDYCARLSBAD-ARTESIA, NM$424,100$543,000$656,350$815,650
GRANTSILVER CITY, NM$424,100$543,000$656,350$815,650
GUADALUPENON-METRO$424,100$543,000$656,350$815,650
HARDINGNON-METRO$424,100$543,000$656,350$815,650
HIDALGONON-METRO$424,100$543,000$656,350$815,650
LEAHOBBS, NM$424,100$543,000$656,350$815,650
LINCOLNNON-METRO$424,100$543,000$656,350$815,650
LOS ALAMOSLOS ALAMOS, NM$424,100$543,000$656,350$815,650
LUNADEMING, NM$424,100$543,000$656,350$815,650
MCKINLEYGALLUP, NM$424,100$543,000$656,350$815,650
MORANON-METRO$424,100$543,000$656,350$815,650
OTEROALAMOGORDO, NM$424,100$543,000$656,350$815,650
QUAYNON-METRO$424,100$543,000$656,350$815,650
RIO ARRIBAESPAÑOLA, NM$424,100$543,000$656,350$815,650
ROOSEVELTPORTALES, NM$424,100$543,000$656,350$815,650
SAN JUANFARMINGTON, NM$424,100$543,000$656,350$815,650
SAN MIGUELLAS VEGAS, NM$424,100$543,000$656,350$815,650
SANDOVALALBUQUERQUE, NM$424,100$543,000$656,350$815,650
SANTA FESANTA FE, NM$424,100$543,000$656,350$815,650
SIERRANON-METRO$424,100$543,000$656,350$815,650
SOCORRONON-METRO$424,100$543,000$656,350$815,650
TAOSTAOS, NM$424,100$543,000$656,350$815,650
TORRANCEALBUQUERQUE, NM$424,100$543,000$656,350$815,650
UNIONNON-METRO$424,100$543,000$656,350$815,650
VALENCIAALBUQUERQUE, NM$424,100$543,000$656,350$815,650

New Mexico conforming limits can change anytime. Check back often to ensure accuracy.

What factors determine if i’m eligible for a Conventional Loan in New Mexico?

Conventional conforming loans follow the terms and conditions set forth by government sponsored enterprises (GSE’s) like Fannie Mae or Freddie Mac. To be eligible for a Conforming Loan in New Mexico, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be considered. A FICO credit score of 620 or above is generally required to obtain a conventional loan approval. You must also have enough income to pay your housing costs plus all additional monthly debt.

How much money will I need for the down payment and closing costs?

Conventional home loans require the home buyer to invest between 3% and 20% of the sales price towards the down payment and closing costs. If the sales price is $100,000 for example, the mortgage applicant must invest at least $3,000 – $20,000 to meet conventional mortgage down payment requirements, depending on the program.

Minimum New Mexico Conventional Loan Down Payment:

Residence UsageFixed-Rate Mortgage (FRM)Adjustable-Rate Mortgage (ARM)
1 Unit Primary3% Down Payment10% Down Payment
2 Units Primary15% Down Payment25% Down Payment
3 Units Primary25% Down Payment35% Down Payment
4 Units Primary25% Down Payment35% Down Payment
1 Unit Second Home10% Down Payment20% Down Payment
1 Unit Investment15% Down Payment25% Down Payment
2 Units Investment25% Down Payment35% Down Payment
3 Units Investment25% Down Payment35% Down Payment
4 Units Investment25% Down Payment35% Down Payment

What property types are allowed for Conventional Conforming Mortgages?

Conventional Loan Rules in NMConventional mortgage guidelines allow you to purchase warrantable condos, planned unit developments, modular homes, manufactured homes, and 1-4 family residences. Conventional loans can be used to finance primary residences, second homes and investment property.

Learn more about conventional mortgages.

What types of mortgage and refinance programs do Conventional Loans offer in New Mexico?

There are several varieties of standard home purchase, first-time home buyer and conventional refinance loans available in New Mexico:

  • Conventional Purchase Loans – Conventional loans offer a variety of programs for applicants with good credit ratings to buy a home. Both 3% down mortgage and 5% down mortgage options are available, however 20% down is the minimum amount required to avoid private mortgage insurance.
  • Conventional Rate/Term Refinance: Conventional Rate/Term refinancing loans are for borrowers who currently have an FHA, VA, USDA or conventional fixed rate mortgage or ARM loan and wish to refinance into a conventional mortgage with a lower interest rate. If you’re a homeowners considering a stable, conventional fixed-rate mortgage, this program may also eliminate your mortgage insurance if you have at 20% equity in your home.  If not, Conventional 97% loan programs may also work for you.
  • Cash-Out Refinance: A Conventional Cash Out Refinance is perfect for the homeowner who wants to access the equity that they have built up in their home. This program is beneficial to homeowners whose property has increased in value since it was purchased.

What factors determine if I am eligible for a Conventional Refinance Loan?

To meet conventional refinance mortgage requirements in New Mexico, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be considered. You must be able to cover closing costs and have enough income to pay your monthly debt.

Conventional Loan Requirements

More New Mexico Mortgage Limits

You may also want to visit these additional home loan resources before deciding on a mortgage program:

 

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