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FINANCING OPTIONS IN MEXICO Seven million North Americans travel to Mexico every year. Of that number, statistics indicate that as many as 400,000 Americans and Canadians have bought second homes or vacation properties in Mexico, with the majority investing in resort destinations such as Puerto Vallarta, Nuevo Vallarta and Punta de Mita. Traditionally, Mexico real estate purchases have been limited to investors with sufficient resources to buy real estate without need for financing. Unfortunately, not everyone can afford to pay cash for property in Mexico. So now that you've found your dream home - how are you going to pay for it? Fortunately, there are now several US-based mortgage companies that offer financing to qualified buyers who want to purchase properties in Mexico. Real estate financing is a relatively new phenomenon in Mexico that extends the possibility of owning a home in Mexico to many who could not otherwise afford it. In the past, North American banks were reluctant to provide mortgage financing on Mexican properties due to the foreign investors' inability to obtain title to real estate within 50 kilometers of Mexico's coastline, which is where most foreign investors choose to buy property in Mexico. To circumvent this limitation, the Mexican Government implemented a system whereby Mexican banks acquire the property and place it in trust for the sole use and enjoyment of the foreign property owner, or "beneficiary." The trust, called a "Fideicomiso," assures the foreign buyer of all the rights and privileges of Mexico property ownership, including the right to remodel, lease, mortgage, or sell the property at any time. Terms of the trust usually extend to 50 years, renewable in 50 year increments, which allows the buyer to bequeath the property to an heir. Due to these changes, there are now several American mortgage firms that offer financing for values up to 80% of the property's appraised value. Financing residences in Mexico have inherent advantages when weighed against the additional costs associated with mortgages, i.e., origination fees, discount points, bank appraisals and processing fees. All residential transactions in Mexico (regardless of who the purchaser is) require payment of a transfer tax on the declared value of the operation (which should be the purchase price and not what the seller or developer declares to minimize the capital gains tax,) notary fees, and recording costs. These expenditures are the norm in any Mexican property transfer - and they are not inexpensive by U.S. standards. Foreign buyers must also pay for the permit from the Ministry of Foreign Affairs, a bank appraisal fee and an annual bank trust fee to administer the Fideicomiso. These expenditures are customary and required, but it should be noted that there is a distinct and protective benefit that purchasers receive in financed operations by foreign buyers. US-based mortgage lenders want a higher standard of assurance that the loans they originate are secure and that the public deeds vesting the bank's lien interest are in fact valid and enforceable. In order to finance Mexican residential properties, there must be a transfer and conveyance to a Mexican bank trust registered by a Notario Publico, which establishes a recorded and renewable 50 year beneficiary interest for the non-Mexican buyer. A simple notation is made on the Mexican trust to protect the lender and provide the lender with sufficient collateral for mortgage financing. We have compiled a list of US lenders that offer financing on properties in Mexico. Chandler Financial Group 734 854 3060 Collateral International 1 800 370 1130 First Source Financial 800 254-2251 1st Preferred Lenders 818 285 8511 Home Loans Mexico 877 295 4111 IFFISO USA 212 202 2362 Marquest Financial Inc. 1 800 281 5658 Mortgages in Mexico 918 342 0715
Jalisco Financial **Loan programs for Americans and Canadians **Rates from: 7.5 to 8.99 **Terms: 3,5,10 year ARM's Fixed: 25,30 year **Loan to Value up to 75% No prepayment penalties **Full documentation and Stated income loans available. Please contact Russ for eligibility at: 322.148.6544
MortgagesInMexico.com We currently have money available for:
b) alt-doc programs (24 months of bank statement deposits instead of tax returns) c) asset based qualification - we verify only assets and no income - we have our first approval that will be closing soon for this type of qualification d) stated-income - we verify only assets to close and no verification of income is required - great for self-employed people with low-income tax returns.
Here are some facts to consider: 1) Mortgages In Mexico, LLC is a loan broker - we deal with ALL souces of money available in Mexico today (unless there is a souce we don't know about yet) 2) To date, we have closed 39
loans - 36 with GE and 3 with Laredo National Bank/BBVA
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