A common question buyers have is about financing for foreigners. Mortgages are currently available to Mexicans with many of the major national Mexican banks, and the loans are done in pesos. However, currently there is little to no availability for traditional financing through American banking institutions. Some hard money lenders are available, but interest rates can easily be in the double digits. What many buyers are exploring now is “seller financing”. In some cases, seller’s offer financing on their property with specific terms that depend on down-payment, interest rate, and length of financing. This is becoming a more popular trend in Cabo, but it is only offered on a case by case basis and depends entirely on the seller’s willingness to finance a buyer and required terms.
By Blake Harrington