Are there Mortgages for Buying a Home in Mexico?

Recently there have been changes in the Cross Border Mortgage Industry.

1. Compass Bank as we have known it is no longer lending in Mexico.
2. Another entity under the Compass parent company offers a new mortgage product.   Staff is reduced, so a good mortgage broker should be able to give you more attention and service.
   1. Pesos loans are available on Mexican property for both US and Canadian residents, all foreigners living here who are earning income, in addition to Mexican nationals.
   2. 25% down payment is the minimum
   3. Credit score is a 680 minimum
   4. Debt ratio is 42% including the mortgage.
   5. Interest rates are 10.9% in Pesos*
   6. Not all brokers have this product, as the lender is restricting who will be qualified to sell the product.  MEXlend here in Puerto Vallarta is one of the qualified providers.
      1. They also have 2 other Cross Border Banks lending in US dollars (besides the pesos loan described above.)
      2. The trust bank for the peso loans is INVEX
      3. The trust bank for the peso loans is Bajio Bank
      4. The down payment may be as little as 25%.
      5. As is the case in most lending, the better the borrower’s credit and income, the better the terms.
      6.  The mortgage representatives for the mortgages are hard pressed to do all their jobs, so they are heavily dependent on the mortgage brokers.

Other Options?

1. Mortgages in Mexico has a way to provide money to take advantage of our lowest prices in years:
   1. Down payments can be provided by refinancing your home in Canada or the USA.
   2.  A home equity line of credit is available for those who are qualified.
   3. M in M also has money available for citizens of Spain and England.
   4. If there is enough equity in the home country, the buyer may be able to use the credit line and cash on hand to avoid a mortgage all together.

*Payments are made in pesos and borrowers benefit from the Dollar Conversion Rate.

Harriet Cochran Murray, Director of Cochran Real Estate, is a seasoned Real

Estate professional both here in Puerto Vallarta, Mexico and in the United

States.  Harriet has served in many capacities as a board member for the

local Real Estate Association AMPI (AMPI is the national association of real

estate professionals).  She is also a member of FIABCI and NAR in the United

States.  Harriet’s expertise and experience in the Real Estate and

especially in the Mexican market makes her Viewpoint blog articles both

informational and intriguing.  Harriet is a Buyer’s Agent who specializes in

getting the best deal on the right property for her clients.  Visit her

website at www.casasandvillas.com and Check out her Real Estate Listings.