In this article, we will cover getting approved for VA loans in New Mexico. Are you an active duty military service member or a veteran looking to purchase a home in New Mexico either for yourself or your family? If so, have you heard about VA loans and that you can apply and qualify despite having a bad credit history and not having to pay down payments?
Today, in this article, we will tell you more about VA home loans in New Mexico. We will cover getting approved for VA loans in New Mexico with great credit, mediocre credit, bad credit, and no credit. The team at Gustan Cho Associates will offer tips on how you can purchase a home using VA loans and other mortgage loan options.
Facts About The State of New Mexico For Homebuyers
In this section, we will be discussing some facts about the state of New Mexico.
What Is New Mexico Known For?
New Mexico touches three other states, including Colorado, Utah, and Arizona, thereby creating the only spot in the entire country where four states meet. Its capital is Santa Fe, which is, in fact, the oldest capital in the country – founded in 1610.
But the largest city is Albuquerque, founded in 1706.
The Economy of New Mexico
The state’s economy is highly diversified, with agriculture, cattle ranching, lumber, tourism, and scientific and technological research as the main sectors of its economy. Moreover, the state is a leader in the country regarding oil and gas, mining, film, media, and aerospace.
The Population of New Mexico
It has a population of 2.1 million people.
The state of New Mexico has been population growth. It has a growth rate of about 0.64%, ranked at position 30 in the entire country by state.
What Is The Median Income in the State of New Mexico
Individual income stands at $26,500, while household income stands at $51,250.
New Mexico Tax Rates
The state has a 5.0 percent and a 4.3 local sales tax rate. Regarding property tax rates, New Mexico has one of the lowest rates, averaging 0.78%. The annual tax rate is about $1,400, which is significantly lower than the national rate.
Education System in New Mexico
The education is par with other U.S states, with over 60% of the population holding some degree. There are 97 school districts in states where you will find above-average public and private schools.
How Is The Weather In New Mexico
The summers are hot and dry, while the winters are short, cold, and snowy. It is mostly clear throughout the year, in any case.
New Mexico Median Home Prices
The average cost of homes in New Mexico is $450,000, with the price per square foot averaging at about $195
Buying Versus Renting In New Mexico
The state is landlord friendly, given that evictions take a little less time than in other states. But this doesn’t mean renters don’t have any rights. On the contrary, every renter has a legal right to seek fair and proper housing without any form of discrimination against them.
What is a VA Home Loan?
The VA home loan is a special type of loan introduced only for veterans and active duty military members to accelerate the process of buying homes for them and their families. These loans were by the U.S Department of Veteran Affairs (VA), require little to no down payments, and also have much-reduced credit history requirements. This means that even with a bad credit history, you would be able to qualify for the loan.
What Are The Requirements For VA Loans In New Mexico?
For starters, we should point out that the requirements for VA loans are the same in all the states in the U.S. Now, with that said, some of the major requirements include:
- You must have a VA certificate of eligibility.
- This certificate is eligible only to veterans, active duty members, and also their wives or widows who qualify.
- This loan is not eligible for the children of a veteran or an active-duty soldier.
- You have served at least 90 days during wartime and 181 days during peacetime.
- As for reserves or National Guard, you have served at least six years.
What About The Benefits of VA Loans in New Mexico?
You don’t need any down payment to qualify for VA loans in New Mexico. There is no down payment requirement on VA loans in New Mexico. Homebuyers can qualify for VA loans in New Mexico with a 100% down payment, and no mortgage insurance, with competitive mortgage rates. Rates on VA loans in New Mexico are generally lower than mortgage rates on conventional loans.
Is It Hard To Get VA Loans in New Mexico?
There is no maximum loan limit on VA loans. You can qualify for the loan even with a bad credit history. You can qualify for the loan if the lender considers you a satisfactory credit-risk borrower.
Buying a Home With VA Loans in New Mexico
When you want to buy a property with VA loans in New Mexico, here are a few things you need to keep in mind. There is no minimum credit score requirements on VA loans in New Mexico. If a lender requires a 620 to 640 minimum credit score requirement, contact us at Gustan Cho Associates We have no minimum credit score requirements on VA loans in New Mexico.
VA Loans in New Mexico With Low FICO and High DTI
The team at Gustan Cho Associates has helped thousands of families get into a home with VA loans with credit scores down to 500 FICO. There is no maximum debt-to-income ratio caps on VA loans in New Mexico. Again, the team at Gustan Cho Associates has helped thousands of veterans get qualified, approved, and closed with debt-to-income ratio up to a 65% DTI on both manual and AUS approved automated findings.
Get Qualified and Pre-Approved VA Loans in New Mexico
before you do anything else, you need to be pre-approved for the VA loan first. The reason is that when you get the pre-approval letter, you will not only be sure of the amount you can spend on the purchase.
Get a Reputable Real Estate Agent
having a reputable and knowledgeable real estate agent by your side is crucial as they will enable you to navigate all the complexities of New Mexico. Remember, when buying property, you will first need to find ideal properties, you will need to schedule showings, make an offer, and lastly, close the purchase.
Is Now a Good Time To Buy a House in New Mexico?
All these can be challenging if you don’t have any help. When hiring an agent in New Mexico, you first need to identify the town or city within which you are planning to buy a house so that you will be able to find an agent who is very familiar with the local market.
Decide Where You Want To Live in New Mexico
This is one of the most important decisions you will have to make because different locations offer different experiences, not to mention that property prices vary with location. Regarding home prices, property in the Albuquerque area, in Bernalillo County, sits at $320,000 in 2022, while in Las Cruces’s Dona Ana County, the median price is about $280,000.
Calling Santa Fe Home
If you want to invest in the capital, Santa Fe, the median property prices are about $585,000, making it the most expensive location in New Mexico. Other than property prices, it would help to consider the cost of living in these areas, plus many more. For instance, life in Las Cruces is way cheaper compared to Albuquerque and Santa Fe.
You should research all other locations of interest to determine the cost of living before deciding where to settle. Check also the local school system, as you would want to buy property in a location where your kids can access a better education system. You should consider these things when selecting where you want to buy a home in New Mexico.
Buying Your Dream Home With a VA Loan in New Mexico
After you find your dream property, you will need to ensure it’s in good condition. You no longer have to rent if you are eligible for a VA loan. You can buy a home with VA loans in New Mexico with no money down and no closing costs. So, get a professional to inspect everything in the property, to ensure that there are no major problems that would cost you money to repair.
And if there are such problems, they must be considered when negotiating the final price. It is also important to have an appraiser who will assess the home’s value to ensure that you are not into paying more than the property is worth.
Summary and Final Thoughts
If you are a veteran or active-duty military member looking to buy property in New Mexico, you should know that your dream of home ownership is much more possible thanks to the government’s establishment of VA home loans. The good thing about these loans is that you would be able to access them even with a bad credit history, and you don’t need any down payment. So, get a reputable mortgage broker in the state to apply for a VA loan today!
October 20, 2022 - 7 min read