Financing Real Estate in Baja Sur, Mexico

It is possible to buy property in Baja Sur with American & Canadian financial institutions.

The financing process has advanced by leaps and bounds in recent years, changing a traditionally "cash only" market into a much more North American style of financing. Buyers now have standard loan documents and procedures familiar to American and Canadian customers purchasing property in their home countries.

a) Owner Financing

There are some motivated sellers offering financing. Ask our real estate consultants for owner financing properties.

b) Bank institutions

Financing / Mortgages / Loans in Cabo Baja California Sur

Qualification criteria.

Client needs a 680 or above credit score to qualify. Loans are available to US and Canadian citizens in US Dollars.

Loan Programs

Residential purchase / rate and term refinance / max loan $600,000 USD.
30yr loans at 8.75%
20yr loans starting at 7.99%
35% down payment minimum

Construction

MCM is now lending at 65% loan to Value utilizing the land as collateral. Rates from 7.5% with approved builders. Construction to permanent loan with a 1 time close and no max loan amount.

Why are the interest rates in Mexico higher than the US or Canada?

The reason for this is that it is always a higher risk for a bank to collateralize a foreign property than a local property. This higher risk equates to a higher interest rate.

In markets that have been traditionally "cash only", significant progress has been made in recent years, with local lenders, mortgage brokers and US-based financial institutions creating a more "US -style" process, including standard loan documents and procedures familiar to the US customer purchasing second homes abroad.

Baja Smart Real Estate can help you create a bridge between you and the lender, facilitating your ability to obtain financing for your real estate transaction.