Buying a Playa del Carmen Villa on a Mortgage

When considering buying a new property in Playa del Carmen, or even a resale, one of the options you may consider is buying by means of a Mexico mortgage.  It is becoming more and more common that properties in Playa del Carmen are being pre-approved, guaranteed that they have met the qualifications for a bank mortgage, which are stricter in Mexico than in the U.S.

One example of a property like this is a new development of Playa del Carmen villas on the north end of town, in a community called “El Cielo.”  So far, there are about 10 developments in El Cielo, and prices are still relatively low.  The villas are only 900 meters from the beach, and downtown is about a 10 minute drive.  In addition to accessible prices, the recent granting of the condominium regime means that the property has been approved for bank financing.  The down payment is about $63,000 USD!

Some Playa del Carmen condos also have this feature of pre-qualification for mortgage loans; one condo currently for sale in the downtown community known as Little Italy is a good example.  While the complex includes a rooftop lounge area, one of the main attractions is the community, which has a small-neighborhood, European-like style; the complex is on a quiet residential road with some private schools, but is only a couple of blocks from both the main tourist street, and a more local street with fruit markets, bakeries and little breakfast corners.  Pre-qualification for bank financing makes purchasing the property easier and quicker.

These situations of pre-qualification of a property mean that the only step you as a buyer have to take is gaining credit approval.  A huge advantage is that upon your personal credit approval, and completion of the down payment, you can begin enjoying immediate use of the property.  The fact that the mortgage is from a Mexican bank (such as Scotiabank Mexico) will mean that your villa or condo itself will be leveraged against the loan; your property equity back home will not be tied up.

It is worth noting, however, that mortgages in Mexico have tighter regulations, requiring higher FICO scores, and a larger percentage for the down payment (in general economic terms, a good thing, considering what has happened in the U.S.).  The process is also slower, requiring more paper work.

This having been said, the opportunity to buy pre-qualified properties cuts a good chunk of the process down, and if you are confident in your credit rating, and have found a down payment within your range, this option is a very viable plan for property acquisition; you will just have to begin the process with patience, knowing it is different from back home!

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. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate License S.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546 or through the company’s web site www.TOPmexicorealestate.com NETWORK

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