Imagine thousands of miles of virgin beaches with tens of thousands of villas and condos that all need financing!  The Mexican Mortgage Market is in rapid expansion and the globalization of the real estate capital markets is aggressively seeking new deals.  According to a leading real estate appraiser in Mexico, Bruce Greenburg, there are between $20 and $40 Billion Dollars in residential real estate assets held by Americans in Mexico today with an estimated $5-$7 billion dollars under construction and deliverable within the next 18-24 months.  This is one of a countless number of opportunities that await within the emerging global mortgage market.  

The U.S. mortgage industry is undergoing the creation of a new market niche of international real estate financing.   Baby Boomers are a 75 million person strong bubble pushing through our economy and this year they start to turn 60.  With average life expectancy pushing 85 years and growing by the hour, Boomers are rightfully looking to expand their horizons.  Second Home sales accounted for 4 out of every 10 residential home sales in 2005 and the increased integration of the Mexican economy with the US makes Mexico an attractive and secure second home destination. 

The industry of lending money to Americans buying property in Mexico is in its infancy.  While some innovative US banks have issued mortgages for properties in Mexico since the mid 90's the volumes have barely reached amounts that merit the attention of Wall Street.   Now with the entrance of the Baby Boomers into the equation and the rise in real estate values in the US it is likely that the volumes of "Mexican Mortgages" will be much greater in the very near future.  This market is being approached from both sides of the border.

The local Mexican Peso based mortgage market is also just beginning to gain momentum with the first securitizations of mortgage backed securities within the last few years. 

As the financial markets of the US and Mexico continue to move toward common structures we are likely to see greater financial fluidity across the border.  The fact remains that Mexico and the US are very different with fundamentally distinct legal systems, different politics, different languages and different customs.  All of these considerations must be understood and respected as we become ever more intertwined. However, the desire of Americans to purchase beautiful beach property in Mexico may only be exceeded by the desire of 20 or 30 million Mexicans looking to make a better living by building homes on either side of the border.

Most lenders that loan to Americans buying property in Mexico do so under rather strict lending criteria.  A 70% Loan to Value and an average fico score of 680 is considered normal. Not to mention that certain lenders will only lend in certain areas of the country or only with certain developers.   The real challenge to lending in Mexico is two fold: one is the patience required to work through the closing process which can last up to 90 days or longer and the other is the volume necessary to rally the interest of capital markets for increased liquidity. 

Many challenges lie ahead for the international mortgage industry but one thing is certain.  The beautiful beaches of Mexico continue to call and the money is just beginning to flow. 

Scottsman's Guide Article, April 2007

For more information on how to get a mortgage in Mexico please contact us at MEXICO MORTAGE SOLUTIONS-Enrique (Henry) Saldana Tel: (984) 879-4351 or my Cel: (984) 116-8528, or at our e-mail: This email address is being protected from spam bots, you need Javascript enabled to view it