RESIDENTIAL PURCHASE / RATE & TERM REFINANCE / CASH OUT REFINANCE
30yr loans or 20yr loans
CONSTRUCTION lending is 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.
CASH OUT REFINANCE Clients can now cash out 50% of appraised value with a maximum loan amount of $800,000 15/20/25/30 yr adjustable and fixed rate loans with rates from 5.75%
CONSTRUCTION LOANS
QUALIFICATION CRITERIA – Client needs a 680 or above credit score to qualify. Loans are available to US and Canadian citizens in US Dollars. Our Bank will only sit in first lien position, therefore the land need to be owned free and clear. We require US/Canadian taxes to qualify, but if tax returns do not show sufficient income, we can use personal bank statements as an alternative.
FACTORS FOR DETERMINING LOAN AMOUNT– there is no maximum loan amount. Loans are made at 65% LTV (loan to value). An appraisal is done of the lot and the architectural plans and a future value is determined based on comparables in the area. Our bank will lend 65% of this appraised value. Our bank does require that 30% of the home is completed before the first draw on the loan is made, however if you use our preferred builder, they will build the first 30% with no out of pocket costs for the client. Appraisals are performed prior to each draw on the construction loan culminating with a final appraisal upon a complete product at which time this loan transfers to a traditional mortgage loan.
FREQUENTLY ASKED QUESTION ABOUT MORTGAGES IN MEXICO
HOW MUCH DOWN PAYMENT IS REQUIRED? In Mexico, the required down payment for a loan is a minimum of 35% down. This is applicable to loans under $800,000.
ARE THE INTEREST RATES IN MEXICO HIGHER THAN THE US AND WHY? Yes, they are. 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.
IS THE INTEREST ON MY MORTGAGE TAX DEDUCTABLE LIKE MY US MORTGAGE? residential mortgages are funded in US Dollars Collateralizing Mexico real estate available to US and Canadian citizens. The liability shows up on US credit and according to US tax law Per IRS regulation Section 163 (C), as well as Publication 936, interest paid on primary and secondary residences up to an aggregate one million dollars in loan amount is tax deductible.
HOW LONG DOES A LOAN TAKE TO FUND AND HOW DO WE PROTECT OUR CLIENTS INTERESTS IN THE CONTRACT? A loan generally takes between 60 and 90 days to fund. We always ask for a 90 day closing timeframe be placed in the contract to provide us ample time to close/fund the loan. We also request that a 30 day financing contingency be placed in the contract to receive FULL approval from our Bank before any earnest money deposits become non refundable so as to protect our client’s interests.
