# I've been in Mexico for 2 months can't find a home..



## texaslacyaguilar (Nov 9, 2015)

Was wondering If any one don't want to rent or sale a home to my family.. we are having a very hard time not going there a bank.. the houses we be are looking at are around 700000-1000000 pesos.. we have sold our home in us.. but are owner financing... have no credit In Mexico to get a loan.. any help on houses and visas let me know... thank lacy


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## citlali (Mar 4, 2013)

Most houses in Mexico sell for cash so forget about loans they are expensive and as a foreigner you can forget it. Are you in Mexico city?


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## sparks (Jun 17, 2007)

Where are you looking ..... lots of rentals or houses to buy here.

You get a Visa at a Mexican Consulate in the US


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## Howler (Apr 22, 2013)

citlali said:


> Most houses in Mexico sell for cash so forget about loans they are expensive and as a foreigner you can forget it. Are you in Mexico city?


Question: If you could afford or put up with the process of getting a mortgage - is there no advantage to doing so, like in the US, where the payments would be locked into a set amount no matter the inflation (or exchange rate)?


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## Isla Verde (Oct 19, 2011)

Howler said:


> Question: If you could afford or put up with the process of getting a mortgage - is there no advantage to doing so, like in the US, where the payments would be locked into a set amount no matter the inflation (or exchange rate)?


Even for Mexicans, getting a mortgage is very difficult. A friend of mine has bought a nice apartment in Mexico City, but he had to put down about half of the purchase price before he was able to get a loan for the rest. He is a naturalized Mexican citizen from the US, who has lived here for over 30 years.


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## GARYJ65 (Feb 9, 2013)

Of course Houses may be bought with credit, banks would lend up to 85% of the house value
Most houses are not bought cash, it is illegal to pay more than $500,000 in cash, the rest you have to make a bank transfer or pay with a check, otherwise you cannot go to the Notario and have the property transferred to you
By the way, I know what I'm talking about, been doing this for 20 years+


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## Isla Verde (Oct 19, 2011)

GARYJ65 said:


> Of course Houses may be bought with credit, banks would lend up to 85% of the house value
> Most houses are not bought cash, it is illegal to pay more than $500,000 in cash, the rest you have to make a bank transfer or pay with a check, otherwise you cannot go to the Notario and have the property transferred to you
> By the way, I know what I'm talking about, been doing this for 20 years+


What sort of interest on a mortgage are we talking about, Gary? How hard is it for the average Mexican to get one to buy a house or apartment?


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## RVGRINGO (May 16, 2007)

Lacy,
Do you have a residence visa, and are you working? If not, it is very unlikely that you would be able to get a loan of any kind. I suggest that you look for rentals.
If you wish to apply for a residence visa, you must do so in the USA, at a Mexican consulate, unless you are married to a Mexican citizen, in which case you may apply at the nearest INM office to your home in Mexico.


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## texaslacyaguilar (Nov 9, 2015)

Thank you guy for the info, yes I'm married to a Mexican national.. we are both new to mexico, long story... yes they want all there money which would be no problem being in the states getting a loan. I am I n aguascalientes


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## RVGRINGO (May 16, 2007)

As the wife of a Mexican, you may apply for a residence visa, and permission to work, at INM. Do that long before your tourist permit expires, as it may take you some time to collect the necessary documents that they will require from both of you.
Loans are not easy to get in Mexico. Basically; if you really don‘t need one, they might give you one, but the interest rates will be shocking. I really suggest that you rent for awhile, until you are sure about your situation in that area. Aguascalientes is a major automotive manufacturing area, so there should be good employment opportunities there. Good luck. When you are both gainfully employed for a while, there will be better opportunities available for home financing.


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## Howler (Apr 22, 2013)

Isla Verde said:


> What sort of interest on a mortgage are we talking about, Gary? How hard is it for the average Mexican to get one to buy a house or apartment?


I'm curious about this, too. In addition to Mexican banks, I know that all the big US realtors (Coldwell, RE/MAX, Century21, etc...) are there; but do they work with the Mexican banks or also with sources of financing outside of Mexico - like US banks?

I also realize that most real estate is sold in personal contracts for cash (with a notario presiding), maybe with several installments... but what is the difference or advantage in paying almost as much in cash then financing the rest? Is it tax deductible like in the US?


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## GARYJ65 (Feb 9, 2013)

Isla Verde said:


> What sort of interest on a mortgage are we talking about, Gary? How hard is it for the average Mexican to get one to buy a house or apartment?


Interests vary a lot, they may start on 11 % per year
Average Mexican...No, the average Mexican would not have the resources
Middle class, even lower middle class...I's a piece of cake, as long as they have a job or if they have steady earnings and they don't have a bad credit history, it's easy
Takes no more than 1 month to process the credit


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## GARYJ65 (Feb 9, 2013)

Howler said:


> I'm curious about this, too. In addition to Mexican banks, I know that all the big US realtors (Coldwell, RE/MAX, Century21, etc...) are there; but do they work with the Mexican banks or also with sources of financing outside of Mexico - like US banks?
> 
> I also realize that most real estate is sold in personal contracts for cash (with a notario presiding), maybe with several installments... but what is the difference or advantage in paying almost as much in cash then financing the rest? Is it tax deductible like in the US?


Only Mexican banks

It is not tax deductible, you can pay as much as $500,000 pesos in cash
You cannot pay more than that
YOU CANNOT PAY MORE THAN THAT
Notarios will have to make the ESCRITURAS and let SAT know that you bought something, and Notario has to tell SAT about the way that property was paid.


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## chuck846 (Jan 15, 2016)

Regarding credit history - we have had several credit cards in Mexico for several years - in addition to several banks/investment accounts. Do I have a credit history ? Is there the concept of checking one's credit report ?


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## sparks (Jun 17, 2007)

Are you talking about INFONAVIT credit to buy a house?


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## chuck846 (Jan 15, 2016)

sparks said:


> Are you talking about INFONAVIT credit to buy a house?


Is that directed at my question ? If so - we already own our house - paid 'cash' which was in the form of a cashier's check drawn on our Mexican bank. First thing the sellers (who were German) did after closing was to rush to the bank and confirm the check cleared.

To be honest - I've never cared so much about my credit score in the US - but every couple of years or so I do check with the three major credit tracking companies and request a free credit report. Does that sort of thing exist in Mexico.


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## Isla Verde (Oct 19, 2011)

sparks said:


> Are you talking about INFONAVIT credit to buy a house?


Who are you addresssing your question to?


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## disenato (Jan 18, 2016)

Hi!
What city have you chosen?
You can create your credit history in about 3 months. 
I suggest you rent first before you buy.


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## GARYJ65 (Feb 9, 2013)

chuck846 said:


> Regarding credit history - we have had several credit cards in Mexico for several years - in addition to several banks/investment accounts. Do I have a credit history ? Is there the concept of checking one's credit report ?


Every time you get a major credit, they do check on your history, even with loans


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## GARYJ65 (Feb 9, 2013)

chuck846 said:


> Is that directed at my question ? If so - we already own our house - paid 'cash' which was in the form of a cashier's check drawn on our Mexican bank. First thing the sellers (who were German) did after closing was to rush to the bank and confirm the check cleared. To be honest - I've never cared so much about my credit score in the US - but every couple of years or so I do check with the three major credit tracking companies and request a free credit report. Does that sort of thing exist in Mexico.


Yes, it is called buró de crédito and you may check your status on the internet as well
Usually property is paid via electronic transfer, certified checks, and sometimes one part in cash, real cash


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## citlali (Mar 4, 2013)

yes Gary and the interest rates are awful.....


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## citlali (Mar 4, 2013)

Gary when I say cash I mean bank transfer, I really do not see anybody carrying a bag full of cash to buy for a house..The interests are awful and I do not know anyone who got a loan to buy for their house..and I am speaking about Mexicans. 
You maybe in a more affluent area where people are more savy about money but everyone I know iis either buying their house by installement from the owner or paying cash and the one paying by installements are very few and they are buying land rather than houses..


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## GARYJ65 (Feb 9, 2013)

citlali said:


> Gary when I say cash I mean bank transfer, I really do not see anybody carrying a bag full of cash to buy for a house..The interests are awful and I do not know anyone who got a loan to buy for their house..and I am speaking about Mexicans. You maybe in a more affluent area where people are more savy about money but everyone I know iis either buying their house by installement from the owner or paying cash and the one paying by installements are very few and they are buying land rather than houses..


I call cash to cash, the other is transferencia
Perhaps you don't know that people because you do not sell property, but there are people who do carry a bag of cash-cash
Most of my customers (80%) buy with credit, the rest on their own money 
This happens in most of Mexico, maybe not where you live


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## GARYJ65 (Feb 9, 2013)

citlali said:


> yes Gary and the interest rates are awful.....


They are indeed
That is the cost of the money we don't have
Lent money is always expensive


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## citlali (Mar 4, 2013)

I guess I do not know anyone who goes for those loans. Good to hear some people get loans and can afford or want to afford the price of the money.


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## xolo (May 25, 2014)

Very informative post about interest rates for mortgages in Mexico. They're closer to credit card than mortgage rate NOB. I can only think the number of loans is small. Why is the interest rate so high? Is it because the loans are risky, the peso itself is risky, or something else?


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## chuck846 (Jan 15, 2016)

Looks like you can get a mortgage from HSBC Mexico for 8.45%. Not so great - but not the end of the world. 

https://www.hsbc.com.mx/1/2/es/personas/hipotecario


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## AlanMexicali (Jun 1, 2011)

chuck846 said:


> Looks like you can get a mortgage from HSBC Mexico for 8.45%. Not so great - but not the end of the world.
> 
> https://www.hsbc.com.mx/1/2/es/personas/hipotecario


About 2 weeks ago the Bank of Mexico raised interest rates in an attempt to help the sliding peso and put billions of pesos in the market. Knowing how many Mexican websites of all types are infrequently updated that rate might be higher today I would suspect.


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## Howler (Apr 22, 2013)

GARYJ65 said:


> They are indeed
> That is the cost of the money we don't have
> Lent money is always expensive


Gary - a question I asked before: is there a financial advantage to getting a mortgage in Mexico, like NOB? (ie. tax deductible, stable payments for life of loan regardless of peso devaluation, etc....)

Thanks for sharing a lot of great info on this topic!


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## chuck846 (Jan 15, 2016)

AlanMexicali said:


> About 2 weeks ago the Bank of Mexico raised interest rates in an attempt to help the sliding peso and put billions of pesos in the market. Knowing how many Mexican websites of all types are infrequently updated that rate might be higher today I would suspect.


We were in the HSBC branch earlier today and I asked what the mortgage rate was today and the woman said "for premier customers" the rate is the same 8.45%. It has not changed.

Side note - I picked up some 6 month CETES on Tuesday. Interest rate 4.05% (before taxes). Those rates increased to reflect the recent interest rate increase.


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