Mortgage broker options in Puerto Vallarta

We recommend that if you own real estate in your home country, obtain the money that you need to purchase Mexico real estate by taking cash out loan on real estate in your home first. By means of a cash out refinance, home equity line of credit, new mortgage, or 2nd mortgage. Why? The mortgage options in your home country have much cheaper closing costs, more familiar requirements, are much quicker to obtain, and the process is easier, with less restrictions. If you don’t own real estate in your home country to get a mortgage on that’s when you should evaluate a mortgage broker in Puerto Vallarta, below we provide contact information for four different mortgage brokers.

Why are Mexico mortgage loan options not very attractive? 

Closing timeframes can extend out an additional 2-4 months in addition to the normal 45-60 days when using home loans for Mexico property, making your closing take 3-5 months.

Some, but not all mortgage loan options require you to obtain in Mexico life insurance, of which have a health screening/Urine analysis/blood draw. There are also age limitations to obtain life insurance in Mexico, along with certain health conditions that are excluded. If you cannot obtain the life insurance then you will not qualify for the mortgage loan products that require it. There can be age restrictions on some mortgage loan products.

Closing costs for mortgage loan products in Mexico are high, and some mortgage brokers in Puerto Vallarta charge as much as 6% commission on the loan amount on top of the normal cost of home loans in Mexico. Consider that normal closing costs in Mexico for a cash purchase are about 5-7% of the purchase price for a foreign buyer, for Mexican Citizens these costs are less 3-5%, add another 6% Mortgage broker commission and you are looking at total of 8-13% in fees for a purchase, this is very high compared to USA/Canada closing costs.

Keep in mind property taxes in Mexico are incredibly low, annual property taxes are often under $700 USD yearly for most properties. The tradeoff is all the government entities get their money upfront during a sale. The rough estimate for a cash purchase for closing costs is about 5-7% of the purchase price, they can be more with for mortgage loans or slightly less for cash purchase, 5-7% is a safe estimate.

If you have no documentable income source in your home country, or no established credit or poor credit, than you are not eligible for a mortgage for Mexico property.

Can you get a mortgage loan through a bank in Mexico? There have been times in the past that some products were offered, these products are available with some banks at times when markets are good, if you prefer to go to through a bank vs a mortgage broker contact us to get recommendations as to what bank may have a product available. Keep in mind Mexico Bank may have restrictions that a Mexico mortgage broker does not as the brokers have many more options.

You cannot obtain a mortgage loan through a bank in your home country using the real estate in Mexico as the collateral for the loan, foreign banks just don’t secure loans with real estate not located in their home country. 

Most Mexico Banks (with the exception of Intercam Bank) only will provide you a Mortgage loan if you have a permanent resident visa or be a Mexico Citizen, have established credit in the country of Mexico with Buro de Credito www.burodecredito.com.mx, you must also have a six-twelve month income deposit history in a Mexico Bank. These requirements do not apply with the mortgage brokers in Mexico.

Mortgage loan products for foreigners are offered through mortgage brokers/private lenders in Mexico. You will find mortgage rates are 8-15% 10–25-year terms, 30-50% down payments required, broker commissions of 3-6%, standard closing time 3 months, perhaps as long as 4 or 5 months.

Please note, the mortgage brokers have many in house services they offer to handle various elements of your transaction, we recommend that you retain outside legal counsel from an attorney in Mexico to review all elements of your transaction including the loan documents, contact us or see our recommendations for Mexican bilingual attorney legal counsel.

Below are the three mortgage brokers/direct lenders we recommend you investigate; all speak English/Spanish: