Guidelines to a Successful Peso Mortgage for Americans and Canadians in Mexico

by Enrique (Henry) Saldana (March 2013)

The new program as presented by two Mexican Banks offering mortgages for Americans and Canadians in Mexico requires a little more attention than your regular Peso Mortgage Loan for Mexican Nationals does.

How so?

Simply, because the mortgage requirements criteria are a bit different that the regular Peso Mortgage for National's criteria is.  Not to mention the terminology and proper documentation analysis required to approve the loan.

Therefore, and as we have already been contacted by a couple of real estate agents who have submitted files through a couple of mortgage brokers with no immediate results, we have decided to put the following guidelines forward to assist you in the process of mortgage broker selection and prompt expedition of your loan request.

First and foremost, your mortgage broker needs to be an approved broker with these two banks (approval process required).

Language barrier issues should be avoided (this new process is a bit complicated based on the documentation requirements and proper guidance and avoiding confusion is a must).  We have found out that different versions of government requirements by other than a specialized mortgage broker only confuse the client, especially and considering the new immigration laws being recently instated.

The novelty of the product; Being that this is a new product even for the banks involved, do not expect to be able to walk into the bank and have a regular peso mortgage executive help you in the loan application process. You might be lucky to find that the bank executive even knows about the program. Both Banks/Lenders are still in the learning curve.

Based on the above assumption, the learning curve for the underwriting department, or risk department as they call it in Mexico, may still be a little confusing as to the proper documentation and what to look for in such documentation. This process we experienced during the learning process curve of Scotiabank and other lenders in the past. Do not expect anything different this time around.

Allow your client enough time to fulfill the new requirement pertaining to government documentation being requested for the approval of the loan.

As of right now, I know of only a handful of bank-approved brokers who may be able to put a package together, a couple of them being former Scotiabank and Bancomer USD Mortgage Loan Executives. One of these is Scotiabank former USD Mortgage Loan Executives Edgar Valdez, who is now part of our Mexico Realty Solutions Company project.

Last, but not least, ask all the right questions, and find out how much does your mortgage broker know about the process and the compliance requirements from the lending institutions involved in the process.

And Good Luck! Bon Chance! Buena Suerte! in your search for a peso mortgage loan for the purchase of your piece of paradise in Mexico.    
New Peso Mortgages For Americans and Canadians Now Available!!!

As of right now there are no USD mortgages for Americans and Canadians being offered by any bank or financial institution in Mexico though, as we said in our last editorial/newsletter, a program in the works.

However, a new Peso Mortgage Program for Americans and Canadians has just been launched.

The program will approve American and Canadian loan applicants based on their U.S. or Canada credit history, employment and income verification.

Here are the terms:

Type of Credit A Peso Loan for Property Acquisition only
Minimum loan 50,000 USD.  Maximum  will be determined on a client qualification basis.
Loan to Value (LTV) 60% of the price or appraisal value, whichever is lower
Interest rate Starting at 9.9% annually
Term 20 yrs
No Prepayment penalty
DTI 33% back end
Credit Score 680 or better
FM3 Visa Government document required

We would like to welcome Edgar Valdez formerly with Scotiabank Mexico's Vacation Home USD Mortgatge Program to our team as a corporate partner. Edgar will be managing our Mexico City, Distrito Federal, operations. Edgar's cel contact phone no. is (558) 535-9680.

This article is courtesy of Enrique (Henry) Saldana
Mexico Realty Solutions
Tel: (984) 147-1305 Cel: (984) 111-8743