Yes! There are have always been mortgages for US and Canadian buyers. In fact, there are now loans available for every nationality that wishes to purchase a home in Mexico and take advantage of the rock bottom prices that are now being offered in many of the resort areas.
Two years ago, Scotiabank and Compass bank were the only remaining US dollar loan options with underwriting comparable to what is available in the US. Unfortunately, both of those banks discontinued those programs, but most people did not know that there were Pesos mortgage options for over eight years. In addition, one company, MEXLend, continues to offer a US Dollar mortgage with quick and easy approvals and closings.
In order to qualify for a Mexican bank pesos loan, your broker must basically work with you in order to fit their criteria. You must either have or begin the process of obtaining a Mexican visa, opening a Mexican bank account and acquiring credit in Mexico.
Some of this can be eliminated and your US or Canadian income can be used, if you are willing to provide a 50% down payment. Otherwise, if you plan ahead and work towards the future, you will be able to qualify for a 10% to 20% down payment. It will take time and patience and careful planning.
If you have the 50% for a down payment, plus closing costs, you will find that the process is not so onerous and you should have no trouble in getting qualified for a loan with a Mexican bank. However, lease keep in mind that Mexican banks will not lend to two unrelated persons, so if you are planning on utilizing the credit of two un married partners, that will not work.
Also, Mexican banks can and will discriminate for other reasons… Primarily age. If you are over the age of 72, you will have trouble obtaining a loan. It pains us to have to abide by these rules, however we have little choice in the matter.
One company, MEXLend, has the exclusive rights to a US based mortgage product. The application process is exactly the same as it would be in the US and in fact, these loans are easier to obtain than any loans in the US are at this time.
The loans are available to all nationalities and they close quickly. The price to be paid for this comes with a much higher interest rate. However, interest on these loans is tax deductable, they are available for all people no matter of their marital status or age, and the lender will provide residential mortgages for LTD and LLC corporations —something that no bank will do.
These loans make terrific bridge loans in order to snap up a property at a great price and take a year or so to pay off the note after you line up other financing. These US dollar loans are available for all nationalities and the lender is offering cash-out refinancing for all foreigners and corporations as well. They are aggressively entering the market in Mexico and will at times, even close on asset based loans.
Rates are predicted to come down over the next few years, so the possibility of re-financing into another loan is a strong possibility as well. There has never been a better time to buy than in the last several months. The market has started to move and deals are being struck all over the Bay area, so don’t hesitate to snap up a bargain retirement or vacation property of your dreams.
