Buying property in Mexico is very possible and affordable for foreign nationals in The Yucatan and Quintana Roo...
Beach lots starting at $20,000
Homes $30,000 - $150,000
Businesses $30,000 - $250,000
Is it really possible for us to get a mortgage in Mexico?
Yes, loans are now available for foreign nationals and visitors in US dollars or Mexican pesos.
What are the requirements to get a Loan?
- Signed application, Picture ID, 2 years signed tax returns with all schedules and W2 forms
- Most recent pay stubs for a 30 day period and
- Two months of recent bank statements.
Can US and Canadian citizens get an attractive dollar financing plan to buy a property in Mexico?
Yes, Fortunately the mortgage market for US and Canadian citizens buying in Mexico is changing. Just two years ago mortgage loans for US and Canadians citizens in Mexico required a 50% down payment with over 12% interest and payment terms 15 years. Most of these loans required a collateral property in the US or Canada. Today, our loans are available with 30% down and interest rates start at 7.5%.
How can a loan to buy a property in Mexico really work without any property as collateral in US or Canada? What about in case of default?
The loan is secured by your purchased property in Mexico and not on your US or Canadian property, therefore, in case of any default BBVA Bancomer would foreclose on the secured property in Mexico.
Do I need a Title Insurance to get a loan?
BBVA Bancomer is committed only to process loans for free and clear properties. All properties will be evaluated and qualified by our appraisal and legal departments. Although Title Insurance is not a BBVA Bancomer requirement, we suggest to have it as part of your purchase confidence.
What are the minimum and maximum amounts available to acquire a loan?
BBVA Bancomer offers a maximum loan to value of 70% and minimum of $100,000 USD. No maximum amount.
What about closing costs in Mexico?
Closing costs in Mexico are considerably higher than in US (it may vary from 5 to 7% based on sales price) as well as a longer process (average between 45 to 90 days).
Note: Since BBVA Bancomer covers the entire process from application to closing (not brokers involved) under our "One stop shop" service, we reduce considerably time and percentage on closing costs issues. (From 5 to 6% and from 45 to 60 days maximum).
Are loan interests tax deductible even from a property in Mexico?
Per IRS regulation section 163 (c), as well as Publication 936, interest paid on primary and secondary residences up to an aggregate one million dollars in loan amount is tax deductible. The IRS regulation does not specify that the home must be located in the United States, and thus it is the opinion of the reputable tax consultants that interest paid on a home loan on property in Mexico is in fact deductible (please consult your tax advisor for applicability to your specific tax situation).
In how many days is my credit approved?
Usually, it takes around 2 business days for US citizens and 3 working days for Canadian Citizens.
Are the interest rates variable or Fixed?
We have several products with both fixed and variable rates.
What terms can BBVA Bancomer provide when it comes to a Mortgage loan?
We've designed programs for every need we have 15, 20, 25 year terms, we no prepayment penalties.
Can 2 people apply for the same credit at a time?
Yes, with BBVA Compass Bank there is a maximum of 4 people that may apply for the same loan.
How are the monthly payments done?
It depends on the type of loan you receive, if the credit is in US Dollars, payments are done through BBVA Compass Bank in US Funds. If the credit is in Mexican Pesos, payments can be done at any BBVA Bancomer branch in Mexico or online.
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