| If you are planning on buying Yucatan real estate, it is | | | | |
| advisable to become familiar with all of your | | | | Other Mortgage Products |
| purchasing options. Buying a property through financing | | | | |
| is becoming a more common possibility for buying a | | | | While some factors are less convenient, it is also |
| Mexico home, and while restrictions are tighter than in | | | | worth noting that Mexico offers some mortgage |
| places like the U.S. or Canada, there are actually a | | | | products not available or much less common back |
| greater variety of mortgage products available. The | | | | home. These include: |
| options for financing a property purchase in Mexico | | | | |
| itself, without leveraging your property back home, the | | | | - cash out land mortgages for building |
| following are a few options to consider. | | | | - payment packages, including property insurance, |
| | | | | mortgage payments and other fees in one |
| Developer Financing | | | | comfortable monthly bill |
| | | | | |
| More developers are beginning to offer short term | | | | Seller Financing |
| financing, and sometimes even long term. Rates are | | | | |
| usually very favorable, and it is usually easier to qualify | | | | Another option is to arrange financing with a seller |
| for their program. It is also becoming more common | | | | (non-developer.) If you can provide the right down |
| for developers to arrange bank mortgages; you deliver | | | | payment amount, some sellers will agree to payment |
| your paperwork to them, and they take care of | | | | terms with no interest charges; while this was a risky |
| everything with the bank. | | | | approach in the past, a new bank trust option allows |
| | | | | official contracts and payments with receipts to be |
| Bank Mortgages | | | | made through a bank, protecting both the seller and |
| | | | | buyer, allowing you to enjoy use and legal ownership |
| Whether through a developer or directly with a bank, | | | | of the property while you make your payments, and |
| Mexico mortgages are becoming a more common | | | | giving the seller an official guarantee that you will pay. |
| phenomenon (a decade ago, they were virtually | | | | |
| non-existent.) Rates tend to be just slightly higher than | | | | If you are going to buy property in Yucatan, consider |
| in the U.S or Canada, they will cover slightly less of the | | | | your financing options carefully, calculate how much |
| purchase price (70-80%) and the paperwork process | | | | you can afford, what payments you can make, and |
| is longer and more complicated, but it nevertheless | | | | get a credit pre-approval from a bank. As always, |
| offers an option to leverage your property purchase | | | | exercise caution, not surpassing your financial limits or |
| without tying down assets back home; the same | | | | putting yourself at risk of loss. |
| property you are buying can be the collateral. | | | | |
| International banks such as Scotiabank or the | | | | TOPMexicoRealEstate. |
| European BBVA Bancomer are common choices. | | | | |