Mostly an all cash market but there is some
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 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.
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 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 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.