How to finance your Vacation or 2nd Home in Mexico

The end of the all cash purchases. 

Until recently if you wanted to buy a home in Mexico your only option was to pay all cash for it. This was true whether you were a Mexican national or foreigner wishing to buy in Mexico.

You paid cash by getting an equity loan on your US home.  This meant that (1) you had to have a home in the US to refinance, and (2) you were usually limited to $100,000 on an equity loan.

Even though, home loans for Mexican nationals have been growing since the early 1990s, the practice was really that of an all cash purchase.

Now this has changed for US citizens, US legal residents, and for Mexican nationals wishing to buy in Mexico.  

The home buying process is becoming more like the established process in the U.S., which means, more liquidity, equity borrowing (refinancing), and mortgages to buy a home. In addition with the safeguards of a home appraisal, title and hazard insurance.

All this just means that the ability to borrow or to refinance an existing property in Mexico is becoming easier and more widespread.

There are now U.S. and Mexican banks, mortgage bankers and loan agents.  Mortgage brokers also provide loan services to purchase your 2nd and or Vacation home.

 -John Lira

Loan Rates
 (March 2007)

Most Lenders require:

• 30% Down Payment

• FICO Credit Score of 680 (some only 650).

• There's 15, 20 & 25 year loans.

• Interest Rates vary from 8.75 to 9.25 APR