Rocky Point Mexico Real Estate Home Financing is Available
Home Financing in Mexico - Is lending available?
Home financing in Mexico is hard to come by these days. Rarely is financing that dream ocean front condo an option for those buyers looking to invest in the Mexico Real Estate Market. In the heady days of the real estate boom, in the United States, Mexico and Canada, lenders stepped up to the plate and took a risk in emerging markets and substandard borrowers. This risk taking in no more. Lenders once fueling the real estate boom in Mexico have pulled out. The last of them was BBVA Compass at the end of 2011. So what is a US or Canadian buyer of Luxury Mexico Beach Front property to do.
According to Doug Jones, the Mortgages in Mexico broker, there are several options still available to buyers of Mexican property. Owner Carry Back Financing has assumed the role of lender for American and Canadian buyers. Owner Carry back is popular for a number of reasons, not to mention one of the few lending option out there. Buyers seeking owner carry back are not subject to the mounds of paperwork required by traditional lenders. All that is required is a written agreement between the Seller and Buyer honoring the terms of the contract. A seller carry back agreement includes a promissory note where by both parties agree to a required deposit by the buyer, an agreed upon interest rate paid on the outstanding principle, the duration of the note, and a balloon payment at the end of the duration.
Another option for Mexico Real Estate buyers looking for financing is the traditional home equity loan. If you are lucky enough to be in a position of having positive equity on your real estate property in the United States, rates for home equity loan have never been lower. Take advantage of the current interest rate environment if you can afford the extra payment. Contact your local Mortgage broker to learn what real estate loan programs are currently being offered.
Doug has also been working on a Peso-Backed loan available to U.S. and Canadian Citizens. Although this loan program has yet to be implemented, it would go a long way in helping Americans buy Mexican property. Stay tuned for the details. We will write about the details as Doug announces them.
Lastly, there is good hard earned cash for purchasing that Mexican property. Have some savings in that bank account or retirement account? Then remember to ask your financial advisor about your real estate investment options before withdrawing your money.
Please call me with any additional questions about financing that Mexican Real Estate
Kyle J. Wood
Realty Executives Rocky Point
480-297-8079
www.rockypointkyle.com
www.puertopenascoliving.com
www.winterhomesinarizona.com
kylewood@realtyexecutives.com