BajaNomad

Financing for Mexican properties?

pauldavidmena - 12-2-2021 at 01:32 PM

I had always thought that the terms for purchasing property in Mexico were strictly cash. This article from Coldwell Banker Riveras in Cabo San Lucas, however, addresses getting a mortgage in Mexico. I had never heard of this before, and wonder if it falls under the category of "if it sounds too good to be true..."

phmilo - 12-2-2021 at 01:42 PM

I looked into this a bit when we bought, but there was a lot of extra legal and the rates weren't that great, so in the end it just didn't make sense. We were looking at a different program, but I suspect CBR is similar - There are some tremendously deep pockets of money here and there that are looking for a return (guaranteed). I think they figured out a way to secure a foreign property that gave them an avenue of recourse if the loan were in default.

CBR says they report interest in the US. I'm sure that's true, but I bet it's more like standard 1099 interest, and you would be hard pressed to deduct it as a residence housing interest payment.

pacificobob - 12-2-2021 at 05:13 PM

I know several Mexicans who have owner financed property sales [to other Mexicans] and had it turn into a nightmarechitstorm when the payments quit.



BajaTed - 12-3-2021 at 07:10 PM

Another option is to hold the property as a corporate asset and sell interest only dividend shares.