Do you want to move to Mexico full or part-time? Are you wanting to retire in Mexico? If so, you aren’t alone as many foreigners are moving to Mexico to enjoy a more relaxed, slower pace of life in paradise.
If you are hoping to move as well, you may be interested in purchasing real estate. If you are a foreigner who is living in Mexico and would like to get financing from a bank in Mexico, then you should know that most of the banks will require an FM2 migrant visa or a resident visa. Wondering where you should buy a property?
Contact us at Villa La Estancia in Cabo San Lucas and Riviera Nayarit. We are a hotel-condo concept property popular with ex-pats who want a dream vacation home at the beach. Meanwhile, keep reading below to learn more about Mexican real estate purchases for foreigners.
Can Foreigners Get Bank Loans in Mexico?
Firstly, in 2023 foreigners have options in Mexico to obtain bank loans. Generally, most of the banks will have you show documentation of residency status in Mexico. For instance, it is required that you have a copy of your migrant visa.
If you want to apply for a loan, you have to have residency in Mexico. This isn’t a difficult process, and an immigration attorney can assist you. Do you want to know if a foreigner can finance a home in Mexico? Despite more banks offering loans for real estate in 2023, financing real estate in Mexico for foreigners is still limited.
Generally, Mexican banks don’t like to lend money to temporary residents unless the foreigner has two years of banking history with the bank. Also, some of the banks in Mexico will ask foreigners to have a cosigner to qualify for a loan along with having a decent credit score in the United States.
Check out All About Mexican Property Taxes.
Mexico Banking Information
Mortgages are not as competitive in Mexico as they are in the United States. You can get a mortgage in Mexico as a non-Mexican, but the banks do have standard requirements just like in the US. What banks in Mexico do foreigners use? There are many options. The most popular banks in Mexico are BBVA Bancomer, Barnote, Citi Banamex, and Banco Santander.
Foreigners are able to open a bank account in Mexico, but as a US citizen there are important things you should know. Each bank will have different requirements, but an ID, proof of address, and a copy of your identification are a must.
Also, some of the Mexico banks will accept an FM3 non-migrant visa if you can provide proof of foreign bank statements that show you meet financial requirements.
Read What to Know about Mexican ATMs.
Can Foreigners Get Bank Loans for Real Estate in Mexico?
There are more options today than in previous years for financing for real estate in Mexico. Some of the principal banks in Mexico along with specialized lenders offer “cross-border” loans that will lend money in US dollars.
Usually, banks in Mexico offer real estate loans ranging from five to twenty years, and some will offer longer-year loans. If you purchase a new construction, the developers will offer in-house financing for qualified buyers.
Does Mexico use a credit score system? The Buro de Credito is the official credit bureau in Mexico that tracks credit information. Circulo de Credito is a private credit bureau that uses the FICO score and is starting to become popular with many banks in Mexico.
This article may interest you, Expat Dreams in Mexico.
Bank Trust Information
Lastly, foreigners who want to purchase real estate property near the coast or border of Mexico will need to get a bank trust for the title, which is also known as “Fideicomiso” in Spanish. The bank trust allows foreigners to invest in property in Mexico and own it as a beneficiary.
To set up a Fideicomiso, the bank fees, permit, and one year of fees need to be paid in advance along with other expenses that can range from $2,000 to $2,500 USD. The closing costs, property taxes, rights, notary, certificates, and attorney fees will also have to be paid at the same time.
It is easy to see that you can get a bank account and get a loan from a bank in Mexico if you meet their requirements.
Do you want to purchase a vacation home in Mexico? If so, why not check out Villa La Estancia in Nuevo Nayarit and Cabo San Lucas? Both are prevalent destinations in Mexico for expats. Plus, both properties are on beautiful beaches with stunning ocean views.
Villa La Estancia offers full and fractional ownership options, and we have in-house developer financing available for qualified home buyers as well. To learn more, contact Villa La Estancia and sign up to participate in our Try and Buy Program. It allows prospective homebuyers to enjoy a dream vacation at their property before they invest in buying real estate.
During your stay, you can live a dream beach lifestyle while enjoying amazing onsite amenities and services.