How to get a mortgage in mexico
THE experts in Mexico home loans
Y ou may be looking either get cash back or to get a better rate and term than the current financing you have on your property. Current options in the US and Canada include equity loans (i.e. a 2nd mortgage against your property), a HELOC (Home Equity Line Of Credit), a refinance loan, or even a reverse mortgage. Mexico is limited in what you can do. One of the biggest differences between investing in Mexico or in the US or Canada is that once you put cash down on your property in the United States or Canada, it is reasonably easy to pull out your equity. Current lending guidelines in Mexico are more rigid. The maximum cash you can pull out is 50% of current value. If this is not sufficient for your needs, the only option you have would be to sell your property. In Mexico, there are no HELOC loans, equity loans, 2nd mortgages (1st mortgage lenders do not allow 2nd's behind their 1st mortgage) or reverse mortgage loans. This means that if you want to get cash out, you may refinance your existing property. Even though you may not have an existing loan against your current property, we call it a refinance because you are already in title to your property.
CASH OUT REFINANCE IN MEXICO (currently not available)
You may get a cash-out refinance of up to 50% of your current value at time of the lender appraisal. These appraisals are done by independent appraisers in Mexico by licensed appraisers. The value is done in pesos and converted to USDollars based on the then current exchange rate. You must get your loan approved before we can order an appraisal. You need to be realistic as to what your property is worth in the current market when deciding if a refinance is a viable option for you to pull out cash based on your existing equity. If you would like more information on this, you may call or email. You may also apply for your refinance online.
RATE AND TERM REFINANCE IN MEXICO
This loan may be up to 60% of your current value. If you purchased your property with a mortgage loan in Mexico, we can payoff your existing mortgage loan with a new loan that has a better rate and term. We can include your closing costs to be paid from proceeds beyond your loan payoff amount.
PRE-SALE CONDOMINIUM PURCHASE/BUILDER FINANCING/BALLOON PAYMENT DUE IN MEXICO
If you purchased your condo using builder financing, it is likely that your loan term is 5 years or less. The monthly payments may be fully amortizing over the term of the builder carry-back (in which case your monthly payments will be very high), or you may have a balloon payment for the balance of the loan due at the end of the loan term. If you have builder financing, this usually means that you are not in title to your property - the builder won't transfer title until he has received his money. When he is paid, transfer of title will then take place, and the required Mexico fees and taxes must be paid. We can do a loan of up to 65% if you still have at least 35% remaining to be paid to your
developer. Call or email us for details regarding your specific circumstances.
REVERSE MORTGAGES IN MEXICO
Reverse mortgages are a great way to tap into your existing equity and receive a monthly "income" back to you. The advantage to this type of loan is that you do not need an income to qualify. Many people purchased their real estate in Mexico at a time when mortgages were not available and they would now like to use some of the equity they have in their property to invest or to live on. At this time, reverse mortgages are not available in Mexico. If you have an income (including Social Security or a private or government pension), we can use a refinance loan and you can then use the loan proceeds to pay yourself a monthly amount keep the money on-hand for investment or emergency situations. You can apply for a cash-out refinance. (Cash-out refinances current not available in Mexico - call for details)
HELOC OR EQUITY LOANS IN MEXICO
HELOC (Home Equity Line Of Credit) loans are equity loans but you only pay interest on the amount of your total line of credit that you borrow from the bank. An equity loan is really a 2nd mortgage where you receive the total funds at time of closing. Both of these loans are good options to be able to get cash back from the equity you have in your property. However, these loan programs are not available in Mexico. You would need to apply for a cash-out refinance. If you already have an existing mortgage loan on your property, you cannot put a 2nd or equity loan behind the first Mexico mortgage loan. The 1st Mexico mortgage lender won't allow any additional liens to be placed behind their lien.
There are currently no "stated income" loans available in Mexico, so in order to pull equity out of your current property, you will need to substantiate an income. This is done using 2 years of tax returns. You will need a FICO/Beacon score of at least 720. If you are not currently in title of your property, the minimum score is 680 as this is technically a "purchase" and not a refinance. Your closing costs may be paid from the proceeds of the loan, but the lender will want to see that you have some cash already in the bank - they don't like to give cash-out refinances to people who have zero money in the bank. We can discuss this further on the phone or via email.
RATES TO REFINANCE IN MEXICO
Rates for a rate and term refinance are the same as purchase rates. You may view our current interest rates on our website. Remember that we have all the loan programs available in Mexico and these rates represent the very best rates in Mexico. When you decide to apply for a loan, since you will find the same interest rates from anyone you contact, your choice will be based on who will do the best job for you. Mortgages In Mexico has been in business in Mexico since 2004 - longer than anyone. We have on-the-ground teams in place in Mexico to insure your loan will be closed quickly and professionally.
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