Many Americans and Canadians have questions and doubts about financing a Mexico real estate purchase through a mortgage when they first undertake the process of buying property. The following are some of the main questions which buyers ask about mortgages in Mexico with answers from professional sources.
Q. Is financing available for non-Mexicans buying property in Mexico?
A. Yes, there is. There are mortgage programs from Mexican banks specifically for Americans and Canadians who have income back home. There is a closely related program for Europeans – mostly British and Spanish – called “Euro Loans†from one Mexican bank, Bancomer BBVA.
Q. What are the basic qualifications to get a mortgage from a Mexican Bank?
A. To qualify for a mortgage from a Mexican bank as non-Mexican you need to meet the following criteria:
- Age – You must be at least 18 years old.
- FICO score – You must have a FICO score of at least 680
- Euroloan – For Europeans, the main difference is that no FICO score is required since credit rating is provided through the European governments.
- Documentation – You will need to meet the basic requirements as with an American bank in terms of documentation.
- Proof of income – You will need to prove your income, usually through tax returns
Q. How long will it take to process my loan?
A. The time period for a pre-approval is very short, and is usually completed within 3 days. The closing process will usually take between 30 and 45 days. The time required results mostly from the commercial appraisal (which is required) and the documentation which needs to be reviewed and prepared. This time is only slightly more than the process of gaining bank trust, which is always necessary when buying Mexico beachfront for sale. In total, those who buy through a mortgage in Mexico can expect to have about 15 extra days in the process in total.
On the whole, the process will be more involved than a mortgage in the U.S. or Canada; however, for most buyers, it is worth the extra effort to have this viable financing option available to them.
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
“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely
