Select Mexico Properties

Lehman Brothers Resort Home Lending will enter the Mexico mortgage market in June with a number of Mexico real estate loan packages. The new loans feature 1-, 3-, 5- and 10-year adjustable rate mortgages amortized over 30 years. Wachovia has also will also purchase vacation home loans made in Mexico.

According to Lehman Brothers Resort Home Lending, they’re specifically interested in lending for waterfront and ocean-view properties in and around Puerto Vallarta. Other lenders, like World Wide Lending and MexUS Capital are also providing second home loans to US buyers.

The interest of lenders is clear. They wouldn’t commit to mortgage lending in Mexico if they thought there was substantial risk or that the value of the land was overstated. Puerto Vallarta is the real deal when it comes to investment value.

Mortgage lenders for Mexico properties are scrutinizing developments carefully for their investment value. Select Mexico Properties has done the same thing and offers only the best properties for sale. To be offered by Select Mexico Properties, the sites must not only have solid investment potential, but also must have enjoyment value for purchasers who intend to reside on the properties.

Select Mexico Properties is fussy about the properties it sells because not every property will provide a high return. We’ve found that being able to provide a high return is one major criterion our buyers use to evaluate our properties. Therefore, we’re committed to selling only the best properties available.

Right now, we’re selling ocean-view residential building sites in San Pancho. These sites will appeal to the private investor who wants to take advantage of the growth potential of Puerto Vallarta real estate. These sites are among the most beautiful sites currently available in this area. Your property will be just steps away from the sandy beaches of San Pancho, and will be situated among lush, jungle vegetation. These sites are ideal for those who want to enjoy the luxury and beauty of a custom-built hillside home.

If this sounds like you, please don’t wait. contact a Select Mexico Properties sales representative today. We can put you in contact with Mexico mortgage lenders who can help you make your dream of a luxury second home come true!

Photo Credit: Scott Robinson

Until recently, most US banks would not issue mortgage loans for the purpose of buying land in Mexico. Mexican property ownership laws were clear and prohibited land ownership in many circumstances. With the changes in property laws in Mexico, a trustworthy mechanism was established for land ownership by non-Mexican nationals and some US and Mexican banks have embarked on mortgage lending for property in Mexico.

Since mortgage loans are so new in Mexico, you won’t find the crazy, complicated mortgage schemes here that you see in the US. Mortgage loans in Mexico are largely the conventional kind, with a fixed interest rate and terms of 30 years. You can find mortgages denominated in pesos or in US dollars. The choice of how your mortgage is funded is up to you, though not all lenders offer your choice of currency.

Typically a peso mortgage has an interest rate that is a couple of percentage points higher than those funded by dollars. Payments are made in the same currency used to fund the mortgage. If most of your income in Mexico will be in pesos, you may want to have a peso mortgage loan. Likewise, if your income is in dollars, you may find having a dollar-mortgage loan is more convenient.

Some buyers choose dollar mortgage loans over concerns that the peso will be devalued, as it has been in the past. New fiscal policy in Mexico strongly discourages the devaluation of the peso. As a result, the currency here hasn’t been devalued since 1994 and relatively stable.

In addition to being able to secure mortgage loans in Mexico, owners here can also secure mortgage loans for land purchases and new construction. Refinancing loans are now available, which is also great news. Without being able to refinance, it is very difficult to use the equity in a property for other purposes, like home improvements or other large expenses.

Select Mexico Properties can assist you in finding a Mexico mortgage lender. If you’re considering the purchase of land in Puerto Vallarta and you’d like more information about lending, please contact a Select Mexico Properties sales representative today!

Photo Credit: Jan Stastny

For many years, buying property in Mexico was difficult. Mexican home sales were conducted largely on a cash basis. Many people were concerned about the safety of their investments and many people were taken advantage of. Changes in Mexican law and the recent introduction of the Mexican mortgage mean that more people than ever are buying Mexican real estate.

If you’re considering the purchase of real estate here, you may want to consider your Mexican mortgage options. You can find long-term mortgage products, exactly like those you’ll find in the United States, here in Mexico. You can get a mortgage denominated in US dollars or in Mexican pesos.

For many years, pesos were considered unstable because the government often devalued the peso, and usually without warning! These days, the peso is stable and hasn’t been devalued in years. Although a peso mortgage may have a higher interest rate, you may find it more convenient to have a peso-mortgage.

US-based lenders will now lend for the purchase of Mexican real estate. Prior to the change in Mexican law, lenders were reluctant to issue loans because ownership rights were often challenged and banks had little recourse if the property dispute was not settled in favor of the mortgagee. With the institution of “foreign-owner friendly” laws regarding real estate in Mexico, and with the introduction of the Mexican mortgage, banks are much more willing to underwrite the purchase of property in Mexico.

We can provide you with a list of lender referrals if you would like to obtain a Mexican mortgage for the purchase of property through Select Mexico Properties. Please take a look at the parcels we’re offering and see for yourself the value you’ll get by purchasing real estate here. When you’re ready to move ahead with your purchase, please contact a Select Mexico Properties sales representative!

For many years, purchasing Mexico real estate was a dicey proposition. First, most Mexico real estate was (and often still is) purchased for cash. Until just a few years ago, Mexican banks didn’t offer mortgages, and foreign lenders were largely unwilling to write loans for property purchases here.

Second, Mexican law doesn’t permit foreign nationals to own property near its coastlines. Instead, properties are held in trust (usually by a bank) for a specific period of time. Trusts can be renewed, so ownership interest is preserved, even over long periods of time.

Third, gaining a clear title to Mexico real estate was challenging, to say the least! Many people thought they had purchased land and later discovered that they had lost their investments because they did not have a clear title, or take proper possession of the land. .

Fourth, once people did purchase Mexico real estate, there was no real way for them to tap into the equity in their homes, even though their properties may have appreciated significantly in value.

The great news for people who want to purchase Mexico real estate is that many of these potential stumbling blocks have disappeared. Dollar-based and peso-based mortgages are now available for Mexico real estate. A peso mortgage usually comes with a higher interest rate, but requires a smaller down payment and smaller monthly payments than dollar mortgages do.

The laws regarding ownership of near-coastal properties haven’t changed, but holding property in trust is extremely safe. Trusts are established for periods of 50 years or more in some cases, and allow the owner to pass the property in trust along heirs.

Title insurance is now available for Mexico real estate purchases. Firms known and trusted in the US for their title work offer title insurance here in Mexico. Purchases are thoroughly researched and clear ownership interests are established. If a title insurance policy is issued and a later claim upsets your ownership rights, your investment is protected.

Possibly the most exciting development for owners of Mexico real estate is the availability of re-financing loans. It is now possible to take advantage of the equity that accumulates in Mexico real estate.

The climate has changed for Mexico real estate investors, making it now safer than ever to buy investment-grade properties here. If you’re interested in exploring what Mexico real estate may offer you, please contact a Select Mexico Properties sales representative today.