Monday, July 26, 2010

Can I Buy My Mexico Home Through a Mortgage?

Can I Buy My Mexico Home Through a Mortgage?

By Thomas Luis Lloyd

Yes, you can! Although Mexico mortgages are a relatively new phenomenon, the good news is that they are now more readily available for American or Canadian buyers. If you are one of the many of us who cannot afford to pay cash for a second vacation home on the beach, or in a charming old colonial city, this means that you can still buy and enjoy your home, now!

Although it is a real option to finance your second home, leveraging the loan against your house back in the U.S. or Canada, this ties up your valuable home equity, which could otherwise serve you for many other purposes. If you buy a home through a mortgage from a Mexican bank institution, your equity back home is entirely freed up. The following are some useful statistics.

· programs especially for Americans and Canadians are available
· mortgages will cover up to 70% of the sale price
· 30-35% down payment is usual
· 6.5-7.5% interest rages
· 15-30 year loan terns
· 650 minimum FICO score required
· 40% debt to income ratio - maximum permitted
· 60 - 90 process for closing
· $100,000 USD - minimum purchase for non-Mexicans to gain a mortgage

While some of the numbers, such as the slightly higher rates, a larger down payment and the longer process time are less favorable than in U.S., as a buyer you must decide if it is advantageous for your situation to have lower rates and at the cost of tying your home equity to a foreign real estate purchase. The good news is that you now have the choice.
Another point to consider when buying your Mexico home is that more and more developers are also offering direct financing, often at very favorable rates, and with a slightly easier process to work through. If you are interested in buying through either of these options, advise your experienced real estate agent in Mexico, who will be able to point you to qualified mortgage brokers, or to developments within your price range that offer financing.
TOPMexicoRealEstate.com; Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely

TOPMexicoRealEstate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"
Region: Playa del Carmen Thomas Lloyd graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. A Mexican Certified Realtor he is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546.