Across New Mexico, many homeowners have purchased their homes using a Real Estate Contract (REC) — sometimes called a contract for deed. These agreements have helped families become homeowners when traditional financing wasn’t an option at the time of purchase. But eventually, most homeowners reach a point where they want (or need) to refinance out of the real estate contract and move into a traditional mortgage loan.
That’s where things can get complicated — especially when working with out-of-state lenders or large national banks.
Fortunately, local expertise matters. Ben Lucero and the team at Indigo Mortgage specialize in helping New Mexico homeowners refinance out of real estate contracts and into stable, conventional mortgage products.
What Is a Real Estate Contract?
A Real Estate Contract is a type of owner-financed home purchase agreement where the buyer makes payments directly to the seller instead of a bank. While these contracts can make homeownership more accessible, they also come with limitations:
- The buyer does not hold full legal title until the contract is completed
- Refinancing options are limited
- Equity can be difficult to access
- Many lenders do not recognize these contracts as traditional financing
In many parts of the country, lenders refer to these as land contracts, which creates confusion — and that confusion becomes a major obstacle when homeowners try to refinance.
Why Big Banks and National Lenders Struggle With REC Refinancing
One of the biggest challenges New Mexico homeowners face is that most large lenders don’t recognize Real Estate Contracts as valid financing structures. Because they are not common outside of the Southwest, many national banks:
- Don’t understand how RECs are structured
- Can’t verify ownership correctly
- Misclassify them as land contracts
- Don’t have underwriting guidelines that support REC refinancing
- Automatically deny or stall applications
Homeowners often report spending weeks or months trying to explain their situation to big lenders, only to be told it “can’t be done.”
This is where local mortgage expertise becomes critical.
How Indigo Mortgage Helps Homeowners Refinance Out of RECs
Indigo Mortgage has helped many New Mexico homeowners successfully refinance out of real estate contracts and into traditional mortgage loans. This is not a standard refinance — it requires:
- Local underwriting knowledge
- Experience with REC documentation
- Proper title and ownership structuring
- Understanding New Mexico real estate law
- Specialized lender relationships
Because Indigo Mortgage operates locally and understands how RECs are structured in New Mexico, they can guide homeowners through a process that national lenders simply cannot handle.
Loan Options Available After Refinancing
Once homeowners refinance out of a Real Estate Contract, they can often qualify for traditional mortgage products such as:
- Conventional loans
- FHA loans
- VA loans (for eligible veterans and military families)
This transition allows homeowners to:
- Build real equity
- Improve financial stability
- Access better interest rates
- Eliminate contract risks
- Establish full legal ownership
- Improve long-term financial security
Why Local Matters in New Mexico Mortgage Lending
New Mexico real estate laws, financing structures, and property transactions are unique. That’s why working with a local lender who understands New Mexico contracts, property laws, and financing structures makes a real difference.
Ben Lucero has built a reputation for helping homeowners navigate complex financing situations that other lenders simply won’t touch. His experience working with Real Estate Contracts specifically makes him a trusted resource for families across Albuquerque, Rio Rancho, Santa Fe, Los Lunas, and surrounding communities.
Get Help Refinancing Your Real Estate Contract
If you currently own a home under a Real Estate Contract and want to refinance into a traditional mortgage, don’t waste time with lenders who don’t understand New Mexico contracts.
Reach out to Ben Lucero at Indigo Mortgage for expert guidance, honest answers, and local support you can trust.
Whether you’re just exploring your options or ready to move forward, Indigo Mortgage can help you transition from a Real Estate Contract into a secure, traditional mortgage solution.