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Mdespriet

Apr 1, 2003, 9:40 PM

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Mexican home financing

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I am looking at purchasing a home in Oaxaca and would like to know if I have to pay the entire amount in cash. I am an American citizen that has just received dual nationality (born in Guad.). I am hoping to put down $60K on a $110K home. Credit and income requirements should not be a problem. I will be spending almost 100% of the next five years in Mexico and would like to know if Mexican banks offer financing or if I should pursue an American loan even though I will not keep a residence in the U.S.. Thanks for any help

PeggyS

Apr 1, 2003, 11:14 PM

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Re: [Mdespriet] Mexican home financing

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The owner/seller will often offer you private financing and you don't have to go any further. So try that first. They usually want 50% down and the rest over five years at perhaps 8% interest, at least that's the way it works here in Ajijic. Not all sellers, of course, but you could make that a criterion for making an offer on a house. Some people have already bought another home and wouldn't mind a nice bit of income with interest for the next five years.

alex .

Apr 2, 2003, 9:45 AM

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Re: [PeggyS] Mexican home financing

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yea, ours was 1/3 down, 5 years @ 16.5 %.(Tijuana) Of course we paid it off early to avoid paying so much interest . We looked at a place in Guerrero state, 1/2 down, the other 1/2 in one year. So its doable, just be sure to register the contract at the Palacio. This is to avoid any problems with the previous owner using the property as collateral while you are paying for it, or multiple sales of the same property. Mexico has no such thing as escrow, ya know....
Alex