financing


	Financing Mexican Real Estate While traditionally these transactions would be conducted in cash, there is now increasing availability of financing for property, both in Mexican pesos and US dollars. Nevertheless, with the growing interest in Mexican property, banks and mortgage companies have begun offering “cross-border” loans, lending money in dollars at dollar rates for the purpose of buying property in Mexico. Some people who are planning to retire to Mexico will sell their house in their home country and use the proceeds to finance property in Mexico; those who want to keep a 'base back home' may release equity from their existing home, rent it out, and use the dual proceeds to fund their retirement home in Mexico. Foreigners Financing Mexican Property If you’re a foreigner living in Mexico and seeking finance from a Mexican bank, most banks will require that you have an FM2 (migrant) visa. However, banks will accept FM3 (non migrant visas) in some cases provided that you can produce your foreign bank statements which back up your financial circumstances. It's not absolutely necessary to be resident in Mexico to get a Mexican loan in pesos. Mortgage Loans in Mexican Pesos Mexican banks have increased their mortgage lending in recent years, lowering interest rates and extending the length of the loans. Obtaining a home loan in Mexico is a more complicated process, however, than in the U.S. or Europe. Part of the reason for this is that, in the event of a default, foreclosure on property is a lengthy and much more complicated process, so lenders take additional precautions. Typically, Mexican banks offer loans ranging from five years to twenty years, although some offer longer loans. It’s unusual for banks to finance 100% of the value of a property – although 80% to 90% is common these days, depending on the value of the home in question. Rates of interest for the period of the loan are usually fixed for the term. Fixed interest rates vary with the length and type of loan, and currently fixed rates are between 11% and 15% a year. Mortgage Loans in US Dollars (Cross-Border Mortgages) Most of Mexico’s largest commercial banks are subsidiaries of large multi-nationals. Some have started offering, through U.S. affiliates, cross-border mortgages for Mexican real estate, lending money in dollars to U.S. and Canadian residents to buy property in Mexico. This kind of financing is also being offered by a number of mortgage companies. The amounts being loaned for property acquisitions has been increasing at a steady rate, and the lenders involved in the process expect the amounts to expand even more rapidly in coming years. The maturities and rates offered vary from bank to bank. Loans are available from three years to 30 years. Rates on dollar loans are lower than those on peso loans, but higher than those on mortgages for buying property in the U.S. Some are fixed-rate, and others are linked to international benchmark rates, plus a premium. Also, the cross-border loans will be for a maximum 70% of the value of the property being bought, and the minimum amount of the loan is usually US$100,000. Charges and paperwork requirements for these loans are similar to those for obtaining loans in Mexico (see below). They include minimum credit scores, mortgage life insurance, property damage insurance, official identification, proof of income, copies of tax returns and bank statements. They also include commissions for opening a credit, charges for credit score, and property valuation. The same documentation related to the property is also required.
EMC GLOBAL REALTY MÉXICO * BROKER OWNER * ERNESTO MARTÍNEZ CURIEL Teléfono oficina y fax 322 293 1542 Teléfono celular 322 133 8555 / 322 182 1771 Teléfono particular 322 221 5877 Telephone from USA 011 52 322 293 1542 www.emcglobalrealtymexico.com /// emc@emcglobalrealtymexico.com ernestomartinez@emcglobalrealtymexico.com /// hagaunbuentrato@emcglobalrealtymexico.com Av. Los Tules # 396 Colonia Jardines Gaviotas. Puerto Vallarta Jalisco México CP. 45027 CR. 45021 Domicilio: Sierra de los Pinos # 135 Colonia Amapas Puerto Vallarta Jalisco México CP. 48399 CR 48351.

Financing Mexican Real Estate

While traditionally these transactions would be conducted in cash, there is now increasing availability of financing for property, both in Mexican pesos and US dollars.

Nevertheless, with the growing interest in Mexican property, banks and mortgage companies have begun offering “cross-border” loans, lending money in dollars at dollar rates for the purpose of buying property in Mexico.

Some people who are planning to retire to Mexico will sell their house in their home country and use the proceeds to finance property in Mexico; those who want to keep a 'base back home' may release equity from their existing home, rent it out, and use the dual proceeds to fund their retirement home in Mexico.

Foreigners Financing Mexican Property

If you’re a foreigner living in Mexico and seeking finance from a Mexican bank, most banks will require that you have an FM2 (migrant) visa. However, banks will accept FM3 (non migrant visas) in some cases provided that you can produce your foreign bank statements which back up your financial circumstances. It's not absolutely necessary to be resident in Mexico to get a Mexican loan in pesos.

Mortgage Loans in Mexican Pesos

Mexican banks have increased their mortgage lending in recent years, lowering interest rates and extending the length of the loans.

Obtaining a home loan in Mexico is a more complicated process, however, than in the U.S. or Europe. Part of the reason for this is that, in the event of a default, foreclosure on property is a lengthy and much more complicated process, so lenders take additional precautions.

Typically, Mexican banks offer loans ranging from five years to twenty years, although some offer longer loans.

It’s unusual for banks to finance 100% of the value of a property – although 80% to 90% is common these days, depending on the value of the home in question.

Rates of interest for the period of the loan are usually fixed for the term. Fixed interest rates vary with the length and type of loan, and currently fixed rates are between 11% and 15% a year.

Mortgage Loans in US Dollars (Cross-Border Mortgages)

Most of Mexico’s largest commercial banks are subsidiaries of large multi-nationals. Some have started offering, through U.S. affiliates, cross-border mortgages for Mexican real estate, lending money in dollars to U.S. and Canadian residents to buy property in Mexico.

This kind of financing is also being offered by a number of mortgage companies. The amounts being loaned for property acquisitions has been increasing at a steady rate, and the lenders involved in the process expect the amounts to expand even more rapidly in coming years.

The maturities and rates offered vary from bank to bank. Loans are available from three years to 30 years. Rates on dollar loans are lower than those on peso loans, but higher than those on mortgages for buying property in the U.S.

Some are fixed-rate, and others are linked to international benchmark rates, plus a premium. Also, the cross-border loans will be for a maximum 70% of the value of the property being bought, and the minimum amount of the loan is usually US$100,000.

Charges and paperwork requirements for these loans are similar to those for obtaining loans in Mexico (see below). They include minimum credit scores, mortgage life insurance, property damage insurance, official identification, proof of income, copies of tax returns and bank statements. They also include commissions for opening a credit, charges for credit score, and property valuation. The same documentation related to the property is also required.