Finance Options for Americans Buying Property in Mexico

In this video, I discuss different financing options for folks from the U.S. looking to buy property in Mexico.

No Transcript Available

Sorry, folks. I accidentally deleted the text file associated with the video. I hate when that happens.

Links

MoXi Financing: https://qrco.de/MoXiFinancing

MoXi Refinancing: https://qrco.de/MoXiRefinance

Can Foreigners Own Property in Mexico? https://youtu.be/ZODUhp8MSA0

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About the Author

Qroo Paul
Paul Kurtzweil (Q-Roo Paul) was a deputy sheriff in Florida for 25 years before retiring at the rank of lieutenant in 2015. He and his wife moved to Mexico looking to maximize their retirement income. They later started a blog called Two Expats Mexico (qroo.us) to share their experiences as well as information about the logistical and legal aspects of retiring south of the border.

3 Comments on "Finance Options for Americans Buying Property in Mexico"

  1. Philip Max Dodd | May 2, 2022 at 9:34 am | Reply

    Excellent information. Thanks.

  2. Bueno dias, love your videos! I have hearing problem so rely on captions. Here is the transcript from Youtube Captioning (enable the CC button, click on three dots to open transcript window) Saludos!

    Transcript

    0:00
    hey everybody kiru paul here welcome to
    0:02
    the channel in today’s video i’m going
    0:04
    to be talking about different financing
    0:06
    options for foreigners who want to buy
    0:07
    property in mexico
    0:09
    now this is something i get asked a lot
    0:11
    about because you know buying property
    0:12
    in mexico is not as simple as going down
    0:14
    to your local bank in the states and
    0:16
    applying for a mortgage i’m sorry sir
    0:18
    the property is located where
    0:20
    [Music]
    0:21
    so today i’m going to talk about some
    0:23
    other popular finance options
    0:25
    for people in your shoes and maybe you
    0:27
    can find the one you know works best for
    0:28
    you
    0:29
    all right
    0:30
    the first one i’m going to be talking
    0:31
    about is one that people typically ask
    0:33
    me about and that is getting a mortgage
    0:35
    directly through a mexican bank although
    0:37
    this may seem like a reasonable solution
    0:39
    on paper because you know you go to
    0:40
    banks back in the states
    0:42
    i never ever recommend this option
    0:45
    because the truth is you will end up
    0:46
    paying way too much for that property
    0:48
    take a look at this this is an online
    0:50
    mortgage tool from conducef that is a
    0:53
    government agency in mexico that
    0:55
    protects the rights of people using the
    0:57
    services of financial institutions kind
    1:00
    of like a consumer protection group on
    1:02
    the site you can enter some data such as
    1:04
    the cost of the property and pesos you
    1:06
    might be looking for the down payment
    1:08
    you plan on leaving and the term of the
    1:10
    mortgage the website will then give you
    1:13
    the fees interest rates and a lot of
    1:15
    other information
    1:16
    um pulled from various lending
    1:19
    institutions in mexico that way you can
    1:21
    kind of get an idea of what are my
    1:22
    payments going to be what’s the total on
    1:24
    the paying what are my interest rates
    1:26
    going to look like etc so i’m going to
    1:28
    plug in some numbers here and let’s see
    1:30
    what we find out okay right away i’m
    1:32
    seeing horrible interest rates
    1:34
    as i look through them it looks like the
    1:36
    average rate is around 10
    1:38
    or more
    1:40
    and the highest on this list is just shy
    1:43
    of 12 at 11.99 percent but that’s not
    1:46
    even the full picture of what this
    1:49
    actually costs you
    1:50
    mexican banks are notorious for their
    1:53
    ridiculously high fees take a look at
    1:55
    that category over there on the right
    1:57
    that’s the cat category
    2:00
    what that is is something special they
    2:02
    do in mexico to help protect people a
    2:04
    little bit more
    2:05
    from this type of you know predatory
    2:08
    lending and what they do is they’re
    2:10
    working in those fees along with the
    2:12
    percentage rate to show you really what
    2:14
    you end up paying in percentage so with
    2:16
    all that factored in look how high those
    2:19
    cat percentages are they are insane
    2:23
    honestly i i don’t know who would sign
    2:25
    up for this if you have any other option
    2:28
    now occasionally you may see a lower
    2:30
    percentage rate advertised you know to
    2:31
    kind of lure you in but chances are that
    2:35
    it’s either not a fixed rate so that
    2:36
    thing’s going to be just changing as we
    2:38
    go or there’s some other you know catch
    2:41
    in there like even heftier fees or
    2:44
    perhaps a balloon payment i definitely
    2:46
    would not recommend going the mexican
    2:48
    bank route at all that brings us to the
    2:51
    next category cross-border mortgage or
    2:53
    lending companies these are companies
    2:55
    who specialize in these types of
    2:57
    purchases for example they give loans to
    3:00
    american citizens who are trying to buy
    3:02
    property in mexico sound familiar there
    3:04
    are a small group of lenders that offer
    3:05
    this type of service and they are not
    3:07
    all created equal in this section i’m
    3:09
    going to be telling you about one that i
    3:11
    think stands out above the rest and that
    3:13
    is a company called moxie just to be
    3:15
    transparent here this is a sponsored
    3:17
    post however i only endorse products and
    3:20
    services that i truly believe would
    3:22
    benefit our viewers if you’ve been
    3:24
    following me for a while you already
    3:26
    know how rare it is in the last six plus
    3:28
    years that i’ve been telling people
    3:29
    about living in mexico first as a
    3:31
    blogger and now as a youtuber i have
    3:34
    literally received
    3:35
    hundreds of requests to do sponsored
    3:38
    posts and i’ve turned down 99.9 of them
    3:41
    that should tell you something about the
    3:43
    companies that i do choose to work with
    3:45
    i am very discerning so
    3:47
    what is it about moxie that makes them
    3:49
    so special frankly i’m impressed by how
    3:52
    they do business the service they
    3:54
    provide and how they make it safer for
    3:56
    americans to buy property in mexico so
    3:58
    i’m going to break this down for you go
    4:00
    through some key points
    4:01
    moxie is backed by billions of dollars
    4:03
    of capital and is regulated and audited
    4:06
    in both mexico and the united states i
    4:09
    like that u.s connection a lot and the
    4:11
    u.s connection doesn’t stop there they
    4:13
    offer secure u.s originated and serviced
    4:16
    fixed-rate 25-year mortgages to u.s
    4:19
    citizens buying in mexico moxie’s rates
    4:21
    are very competitive and i don’t mean
    4:23
    mexican bank competitive because well
    4:25
    those were terrible weren’t they i mean
    4:27
    actually competitive there are no
    4:28
    balloon payments or hidden fees in fact
    4:31
    many americans refinance our mexican
    4:33
    homes through moxie because they’re
    4:35
    currently in financial agreements with
    4:36
    fluctuating interest rates high fees or
    4:39
    balloon payments the loans are in u.s
    4:41
    dollars not mexican pesos so you don’t
    4:43
    have to worry about currency
    4:44
    fluctuations affecting your payments the
    4:47
    loans are reported through the u.s so
    4:48
    you can actually deduct the interest
    4:50
    that you paid on these on your u.s tax
    4:52
    return now let’s talk a little bit about
    4:54
    safety and security of your purchase in
    4:55
    mexico
    4:57
    title insurance and a commercial
    4:58
    appraisal are coordinated by moxie in
    5:01
    every deal to guarantee the security of
    5:02
    the purchase now that may not sound like
    5:04
    a big deal but these things are actually
    5:06
    pretty rare on the mexico side at
    5:08
    closing moxie provides an attorney a
    5:10
    translator and the notary public is
    5:12
    going to be there and the attorney is
    5:14
    going to go through all of the paperwork
    5:16
    line by line with you to make sure you
    5:18
    understand everything and answer any
    5:20
    questions this is a company that’s with
    5:22
    you every step of the way to make sure
    5:24
    the purchase goes smoothly and is
    5:26
    recorded correctly to ensure property
    5:28
    ownership
    5:29
    that is huge and i’ll tell you why i
    5:32
    mentioned that a lot of americans
    5:34
    refinance their mexican homes with moxie
    5:36
    right well according to the folks at
    5:38
    moxie of those americans that have
    5:41
    it was discovered that approximately 40
    5:43
    percent of them did not really own their
    5:45
    home in mexico because the paperwork was
    5:48
    not handled correctly at the original
    5:49
    purchase some aspect of the process was
    5:52
    left undone and this error was only
    5:54
    discovered during the refinancing stage
    5:56
    pretty scary huh that’s why i really
    5:59
    like moxie and i think they’re a good
    6:00
    option for folks who are looking to
    6:02
    purchase property in mexico you can
    6:04
    learn more about moxie by going to the
    6:05
    url that’s on the screen or you can
    6:07
    follow one of the links that i put in
    6:09
    the description portion of the video
    6:11
    alright
    6:12
    now let’s go on to our next financing
    6:14
    option developer financing if you’re
    6:17
    buying property in a development in
    6:18
    mexico that was built or is being built
    6:21
    to attract foreign buyers then the
    6:23
    developer will often offer some type of
    6:26
    financing anytime i mention developer
    6:28
    financing in a video and i talk about
    6:30
    them building these certain developments
    6:32
    with certain clientele in mind someone
    6:34
    will ask me well how do you know that
    6:35
    they’re trying to attract foreign buyers
    6:38
    paul it’s really not that hard to figure
    6:39
    out you’re going to know that these are
    6:41
    developments aimed towards foreign
    6:42
    buyers because their websites are
    6:44
    primarily in english and their prices
    6:46
    are in u.s dollars not pesos those are
    6:48
    pretty good indications their website
    6:50
    and advertisements will also have what
    6:52
    appears to be
    6:53
    a bunch of gringos smiling laughing and
    6:55
    just generally having a good time the
    6:57
    finance options that developers
    6:59
    typically give can vary widely from one
    7:02
    developer to the next it’s not just a
    7:04
    one size fits all and those terms can
    7:07
    also change quite a bit depending if the
    7:09
    property is already built or if it’s a
    7:11
    pre-construction just to give you an
    7:13
    idea of what you might expect here are
    7:15
    some financing terms that i obtained
    7:17
    from a developer who has projects on
    7:18
    both coasts and mexico
    7:21
    for a pre-construction project they want
    7:23
    five thousand dollars down
    7:25
    twenty percent of the purchase price at
    7:28
    signing this is due within 15 days the
    7:31
    next 30 percent is due by the completion
    7:33
    of construction so you’ve paid 50
    7:36
    by this point the remaining amount can
    7:38
    be financed over five years at seven
    7:40
    percent if the property is already
    7:42
    constructed and you’re coming in to buy
    7:44
    it then you’re going to jump right to
    7:45
    that 50 mark 50 down and finance the
    7:48
    rest over five years at seven percent
    7:51
    five years is a pretty short period of
    7:52
    time that’s not really financing in my
    7:54
    opinion especially when you’re talking
    7:55
    about properties that are hundreds of
    7:57
    thousands of dollars you know that’s a
    7:58
    lot of money now there are developers
    8:01
    who have arrangements with companies
    8:02
    like moxie or with mexican banks to
    8:04
    facilitate financing for their clients
    8:07
    uh if they are working with the latter
    8:09
    those mexican banks be sure to look out
    8:11
    for the things i mentioned in that part
    8:13
    of the video before you sign once you
    8:15
    sign it’s way too late okay the last
    8:18
    option i’ll be talking about today
    8:20
    are second mortgages and personal loans
    8:22
    that people take out back in the states
    8:24
    whether or not this is a good option for
    8:26
    you is going to depend on your
    8:27
    particular circumstances you know how
    8:29
    much equity you have in your house how
    8:31
    much you’re really going to be able to
    8:33
    borrow how long is this loan going to be
    8:36
    and is the money you get coupled with
    8:38
    whatever savings you have going to be
    8:40
    enough to cover the entire purchase
    8:42
    price of the property in mexico if not
    8:44
    you will still have to find a way to
    8:46
    finance the rest of the purchase and
    8:48
    then you’re right back here trying to
    8:49
    choose one of the options i just
    8:51
    discussed well there you have it those
    8:52
    are some popular methods to finance your
    8:54
    property in mexico which one is best for
    8:56
    you will depend on your particular
    8:58
    circumstances before i head out i just
    9:00
    want to say that anytime i do a video
    9:02
    where i talk about buying property in
    9:04
    mexico
    9:06
    some folks will inevitably ask me in the
    9:08
    comments section about the legalities of
    9:10
    foreigners buying property in mexico
    9:12
    they’ll say something like oh i heard
    9:14
    foreigners can’t own property in mexico
    9:16
    they can only just lease it that’s not
    9:18
    true but it is a really common belief so
    9:21
    i actually have another video talking
    9:23
    about just that subject and i encourage
    9:26
    you to watch it after this one if you
    9:27
    like i’ll make sure i put a link to it
    9:29
    in the description portion of the video
    9:30
    thank you very much for watching this
    9:31
    video all the way to the end and
    9:33
    supporting the channel until next time
    9:35
    hasta luego

  3. MexicanMeow | May 6, 2022 at 4:06 pm | Reply

    You cover Living in Mexico… future topic suggestion, could be covered in a coffee break: what is a NOTARIO, the critical difference from an USA Notary, and common services + costs (ie, letter, certify copy, etc) Saludos

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