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