HOME FINANCING IN LOS CABOS

Buying a property in Mexico is an exciting prospect. You have looked at a lot of properties and have finally picked the home that is perfect for you. Along the way you have discovered that buying in Los Cabos is usually a cash transaction.

Purchasing a home with all cash can be limiting for most people and may reduce your overall purchasing power. Sellers are faced with similar issues in selling their homes as the pool of potential buyers with ample cash reserves is small.

So, what options are available to you other than Cash?

________________________________

Seller Financing

Seller financing is offered to the home buyer by the current owner of the property. This type of financing is designed to operate more like a short-term bridge loan and is typically paid off very quickly. Although the details may change slightly seller financing terms usually have the following attributes:

Term of loan:               3 years

Down Payment:           50% of the purchase price

Interest Rate:                7+%

Amortized Period:       20 years

Payments:                    Equal installments

Final Payment:             Balloon payment of the balance at the end of term

Seller financing is secured in one of two ways in Mexico. Read about it here:  How Seller Financing is secured in Mexico.

________________________________

Developer Financing

Usually offered on pre-construction properties, developers often offer attractive financing terms that operate more like a conventional mortgage. Down payments tend to be less than seller financing (30%), terms are much longer (up to 10 years) and interest rates tend to be less than seller financing rates.

________________________________

MOXI Mortgage

MOXI Mortgage offers US Citizens residential financing and refinancing with fixed-rate 15-30 year mortgages, full amortization, and the lowest interest rate available from any institutional lender in Mexico.  Visit the MOXI Mortgage website to learn more.

________________________________

Intercam “Dream Loan” Mortgage

Intercam, a national bank in Mexico, offers US & Canadian Citizens residential financing with fixed-rate up to 20 year mortgages, full amortization, and competitive interest rates.  Visit the Intercam Dream Loan website to learn more.

________________________________

Veltra Capital

Veltra Capital offers US & Canadian Citizens residential financing and refinancing with fixed-rate 30 year mortgages, full amortization, and competitive interest rates.  Visit the Veltra Capital website to learn more.

________________________________

What about other Mexican Banks?

Mexican Banks, with the exception of Intercam, will only lend to Nationals and Permanent Residents. If a foreigner could get a mortgage, interest rate are higher than you’d expect:  Mexican Bank Mortgage Rates.

________________________________

The Bottom Line?  The cheapest money is almost always back home!

The cheapest money for Americans, Canadians and most foreigners purchasing in Mexico tends to be from back home.  A re-financing of your property or a Home Equity Line of Credit are the best and cheapest means of borrowing money to buy in Mexico.