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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?

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 are less than seller financing rates.


Global Mortgage

Up until recently, there has been no conventional financing available when purchasing a home.  Global Mortgage offers cross border residential financing and refinancing with fixed-rate 15-year mortgages, full amortization, and the lowest interest rate available from any institutional lender in Mexico.

As an added bonus, annual taxes, insurance, trust, and HOA fees are all included in the monthly mortgage payments. Visit the Global Mortgage website to learn more.