Remax Resort Properties

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Financing

Now that Mexico real estate financing is becoming more readily available, more and more people are choosing this option over using cash to complete their real estate transaction. Most Mexican banks require a Migrant Visa (FM2) for a non-resident living in Mexico to obtain a mortgage loan. However, if there are bank statements to prove the financial situation at home, some also accept an FM3 (Non Migrant Visa). In other words, there is no need to be a Mexican citizen to get a loan from a Mexican bank.

Are Only Mexican Banks Allowed to Offer Mortgage Loans to Foreigners?

No, and actually a property or home loan generated in Mexico is a little tougher than a loan generated in the US or Europe, where it is much easier to foreclose a deal in case of default.


How Much are the Interest Rates? Interest rates vary quite a bit, depending on if the loan originates in the US or Mexico and can be anywhere from 7% on up.


How Does the Bank Check My Credit History? Like any bank anywhere in the world investigates the financial situation of its prospective clients, to take out a loan to purchase Mexico real estate will involve a check of your credit score, proof of income, employment history and any other factors the money institution you chose for considers appropriate to assess.


Can I Use a Retirement Account? Yes, RE/MAX Resort Properties have a number of clients that use their IRAs, Roth IRAs, 401k’s, 403B’s, SEP’s, and Keough plans for Mexico real estate transactions.


Is There an Advantage to Using My Retirement Account? Certainly, because a retirement account provides a great tax shelter for rental income as well as future capital gains tax from the appreciation.


How Do I Invest Using My Retirement Account? It is a very simple matter of transferring funds from one qualified plan to another called a "rollover" which is an easy custodian to custodian transfer.

Featured Properties

Are Only Mexican Banks Allowed to Offer Mortgage Loans to Foreigners?

How Much are the Interest Rates?

How Does the Bank Check My Credit History?

Can I Use a Retirement Account?

Is There an Advantage to Using My Retirement Account?

How Do I Invest Using My Retirement Account?