Can You Finance a Home in Mexico?

Guide to financing a home in Mexico (as a foreigner)

Are you looking to buy a property in Mexico? It’s important to know how you are going to finance your property in Mexico. Here is a quick guide for financing options available in Mexico for you when buying your Mexico property.

Every day we are asked questions about buying property in Mexico, and particularly regarding the financing of Mexico property.

Beachfront property in Riviera Maya Mexico.

Is it possible to finance buying your home in Mexico? 

Whether your Mexico property is a retirement home on the beachfront of the Riviera Maya, or a condo located in the heart of Playa del Carmen, or a vacation home in Tulum.

It has never been easier for residents of the US or Canada (or other foreigners) to buy a vacation home in Riviera Maya Mexico.

While most homes are purchased in Mexico are using cash, there are other options for financing your Mexico property.

Foreigners Financing Options in Mexico

Are you planning to sell your current home to retire in Riviera Maya Mexico? Using the proceeds from the sale of your home to finance your new property in Mexico, or use some of the home’s equity. 

An alternative option is to use your retirement savings.

Developer Financing

Many developments here in Riviera Maya Mexico do offer financing. Working with a development company that offers their own financing plans, is a good option when available.

Most developers do not extend a mortgage to cover the entire cost (or majority of the cost) of the project in advance.

Instead, they offer a partial mortgage after you have made a large down payment. This is usually is 30%, 50%, or more. It’s common for developers to require at least 50% of the down payment when you take possession.

With the remainder paid off over an average period of between five and eight years. 
Most developers financing interest rate will be from 6% to 10%.

But, if you don’t have access to the down payment amount upfront, or if you have trouble borrowing the money from your bank back home, then developer financing may not be your best option for you. 

Foreigners Financing Their Mexico Property Using a Mexican Banks

The good news is you don’t have to be a Mexican resident to get a loan from a Mexican bank. 
However like Canada and the US, Mexican banks have standard requirements.

Mexico Common Loan Requirements:

1) Exceed a minimum credit score.

2) Have property damage insurance.

3) Copies of tax returns.

4) Proof of income.

5) Bank references.

6) Migrant visa (FM2) or non-migrant visa (FM3).

7) Age requirement of 18 and no older than 70.

Documents related to the property:

8) Sales contract.

9) Proof of down payment.

10) Copy of the deeds.

11) Copy of architectural plans.

And all the other normal requirements involved in any real estate transactions. 

Mexico banks expect you to have a migrant visa (an FM2 visa) or in some cases, a non-migrant visa (an FM3 visa).

Click here if you’d like help with obtaining your Mexican visa.

Using a Mexican bank comes with conditions based on the type of Mexico real estate you’re interested in buying. 

Banks in Mexico only finance the sale of real estate that is already titled (an existing home). And Mexico banks do not offer a mortgage on new property or pre-built construction projects.

Mexican banks only offer foreign buyers a mortgage amount worth 50% of the existing home’s value. Not the typical 80 to 90% of a home’s value like US or Canada.

Banks in Mexico require that you get life insurance that covers the loan amount.

If you earn in USD or CAD, then borrowing in pesos can be an attractive option, especially if you expect the peso to depreciate a condition that would result in an overall lower payment over the long term. 

Find Your Mexico Property Today with Caribe Luxury Homes Mexico

When it comes to buying Mexican real estate, it’s much easier in cash. Developer financing is available and requires a large down payments. Using Mexican banks can be a challenge, as it requires a great deal of paperwork and patience.

Therefore if you cannot use a bank from your home country, it maybe best to wait until you’re in a better financial position to start your Mexican property journey.

Do you have all your finances in order and you are ready to go?

We suggest contacting us today to get help from our real estate team. Click here to contact us today.

We also suggest you to get started by receiving listings from our team who personally send you the best listing to suit your needs.

Click the links below to get sent listings today:

Receive Playa del Carmen Real Estate Listings

Receive Mayakoba Real Estate Listings

Get Tulum Real Estate Listings

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Get the best Tulum property listings for under $150k

Get the best Tulum Pre-Construction Property

Get the best Aldea Zama Real Estate Tulum listings

If you would like help from our Real Estate Agents in Rivera Maya Mexico, contact us today.

Click here to Get listings for the Best Tulum Pre-construction Properties Today.

Click here to get Beachfront Property Listings in Tulum Now.

Click here to Discover the best Tulum Real Estate to Invest in Right now in Selva Zama.

Click here to get the Best Tulum Condos & Vacation Homes for Sale In Tulum

You are welcome to read more articles about buying property in Mexico. Click the links below:

Click here to read the Guide to Mexico Law for Buying Property as a foreigner

Click here to read simple guide to buying property in Mexico as foreigner.

Read this Guide to HOA (Homeowners Association) in Mexico

What Is A Mexican Fideicomiso In Mexico Real Estate? Read this to find out!

5 Steps To Buying A House In Tulum Mexico

5 Reasons for Investing in Riviera Maya Real Estate in 2021

A Simple Guide to Playacar Real Estate for sale

Is Playa del Carmen a good place to retire? Read this.

Does Tulum Investment Property Make You Money?

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