"Dancing with the Stars"  in Playa del Carmen.

By Enrique Saldana

A friend of mine, a very successful Realtor back in Chicago, used to tell me that he “would dance with his clients” every time he would go out to get a property listed. What he actually meant was that he would go and deal with each client differently and according to their needs to ensure he could meet his client’s expectations.

In Mexico there is a saying that goes like this, “al son que me toquen bailo” (meaning:” I will dance to their beat”). Anyway you say it, the outcome is the same. There are times when you have to just go along with what the business dictates, and the mortgage business is no exception to that.

So in order to introduce the new changes in lending policies that the primary lenders are offering mortgages to purchase property in Mexico have incurred, let’s just call it Dancing with the Lenders, since their new changes are varied and wide in approach, as you will see. 

The new mortgage lending policies as of today’s date are as follows:

Loan-to-Value: Based on the fact that one of the main banks just reduced their maximum LTV (Loan-to-Value) to 60%, we now have a new mortgage LTV range of 60%-80% LTV’s.

Credit Score Qualification: There has been an increase by that same bank in the Credit Score qualification for the client. They have increased their credit score requirement to 730. Whereas, the others remain at 680 FICO (for Americans) and 680 Beacon (for Canadians).

Debt –to-Income Ratio: The DTI (Debt-to-Income) Ratio has also been modified and dropped to 35% by this one lender. The others still remain at 40% DTI Ratios.

Maximum Loan Amount: The maximum loan amount with this particular lender has dropped it maximum loan amount funded from $1.5 mm (million usd) to $440,000.00 usd. The other lenders’ maximum loan amount still varies between $600,000-$1,000,000. -

Loan Purpose (type of loan): This particular lender has modified this area and would only do Purchases and Rate & Term Refinancing. No Cash Out. There is only one lender left in this target market doing Cash Out and Cash Out Refinanced loans.

Type of documentation: They have gone from Full Documentation and Alternative Documentation to Full Documentation only. We still have another lender making Alternative Documentation Loans  

What do all of these new mortgage policy changes mean? It simply means that as some of these lenders are American based banking institutions, they are simply “toughening” their lending policy standards in order to cope with the present banking situation.

Knowing the facts, and who and which lender is best suited to help your mortgage funding needs, would definitively help you in your search for a mortgage loan to purchase a property in Mexico. Therefore, having a well informed and capable mortgage broker on your side would definitely save you time and money in your search for the proper banking institution to fulfill your needs. Find some one that knows how to dance with the banks, find some one that can dance to their beat.

This article is provided by Enrique (Henry) Saldana – Mexico Mortgage Solutions (in Mexico)/Advanced Mortgage Inc. (in the USA) We may be contacted at Cell: (984) 116-8528; Cell: (998) 147-8936 Office: (984) 109-2458; or at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it ; www.mxmortgagesolutions.com ; for any questions you might have with regards to National and Non-Resident /Foreign National Mortgages.  

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