What’s changed to make buying Mexico safer? 

Buying property in Mexico has never been easier with financing now available.  With new mortgage products now available it opens the doors for any buyer who wants to purchase a home or condo in Mexico who initially had to pay cash.  Properties purchased in Mexico from US Citizens is placed in a 51 year trust.  With this trust you can will your property, transfer it, sell it or renew for $690 (this is the current price) at the end of the 50 years. 

Are these “regular” mortgage loans?

Yes the loans are the same as in the US.  We offer 3, 5 and 10 year fixed rate mortgages which than move to an adjustable rate mortgage tied to the LIBOR Index..  Now a NEW 30 year mortgage has just been added.  The minimum loan amount is $100K with the maximum being $1.5 million.  There is a 3-2-1 prepayment penalty on all loans.

We now offer CASH OUT REFINANCES for property owners who would like to pull out equity out of their homes owned in various places in Mexico.  This is a brand new pilot launch program that is only being offered with the first $10 million dollars in originations. 

How are they different?

The interest rates are about 2% higher than in the states.  The rates will eventually stabilize as more lenders come into the market place in Mexico.

How is the housing market performing in P.V. and your other markets? 

The housing market in PV is increasing at an average of 20% - 30% per year.  The values just keep going up and up. 

What does Puerto Vallarta have to offer?  (sun, fun, restaurants, arts  etc.)

Puerto Vallarta offers the greatest weather under the sun.  The people here are warm and friendly and invite you to their country with welcoming arms.  There are lots of restaurants, shops, boutiques, art galleries, water sports and even donkey rides at a local bar called "Andales." 

Is it easy to get here?  (yes, direct SF flights)

Arriving to PV has never been easier.  There are non stop flights from San Francisco arriving in PV in just 3 hours.  There are also flights available from Monterey and San Jose.  The flights are very reasonable in price.

Where is your local office?  

We have 2 offices. Our main office is located in Puerto Vallarta.  Our other office is located in Monterey.  We have a full staff of loan originators, loan processors and underwriters.  Services available 7 days a week.  Our motto is "if you're working…we're working!!!"  Someone is always available at LTDM or PMC.

Do you do loans for California property?

PMC Mortgagage Company offers a wide range of programs and products through out CA for all types of borrowers for all ranges of credit scores.  We pride ourselves in offering our clients "the royal service they deserve!!!!"  We specialize in educating first time home buyers and helping people in need of repairing their credit to obtain better interest rates and qualifying programs that fit their needs.

Peso Loans

LTDM is pleased to announce we now offer a Peso Mortgage for US Citizens and Foreigners who live in Mexico and their income is derived from Mexico.  Please call for me details.

Can you do Cash Out refinance?
Yes, we now offer cash out refinancing.

What is LIBOR?
London Inter Bank Offering Rate (LIBOR) is an average of the interest rate on dollar-denominated deposits, also known as Eurodollars, traded between banks in London. The Eurodollar market is a major component of the International financial market. London is the center of the Euromarket in terms of volume. The LIBOR is an international index which follows the world economic condition. It allows international investors to match their cost of lending to their cost of funds.

Do you offer Loans where the buyers are a corporation or business entity?
Per program guidelines, we do not offer financing to business entities at this time.

What are the requirements needed to initiate the process for Notario Approval?
Provide the following:  Contact information for Notario, Resume and approval by the lender’s compliance process.

What is the Prepayment Penalty and how is it calculated?
Prepay penalty is 3 years @ 3%.  The 3% is applied to any amount on the unpaid balance on the loan.

What is the cost to buy-out the Prepayment Penalty?
2% of the loan, upfront.

PITI – What is included in this amount and how does it differ from the PITI in the USA?
PITI in Mexico only includes Principal and Interest.  Insurance and Property Taxes are not included.  Usually property taxes are paid as a lump sum for the entire year.

What is the maximum amount of Borrowers allowed to one loan?
Four borrowers are allowed on each loan.

Why do some of the closing charges change from loan to loan?
Many of the closing costs are in Mexican Pesos.  Due to exchange rate changes, the value in dollars varies as the Mexican peso gains and losses value.

Why do we need a Water Bill?
The water bill is used in determining if the selling property was the primary residence of the seller or not, which then dictates whether or not the seller will have to pay capital gains taxes.

What are the Minimum and Maximum loan amounts?
$100,000 is the Minimum ($143,000 purchase price)
$1,500,000 is the Maximum Loan Amount

Why do we need the Spanish appraisal disclosure even if we already have the English version signed?
Please remember that the transaction is taking place in Mexico and Spanish is the official language.  The Spanish version of the appraisal disclosure is really what needs to be signed.  The English version was created so the client can understand what they are agreeing to.

Must the borrower be present at the time of closing?
No, the borrower may use a Power of Attorney (POA) and have a representative that he/she designates as a signer for the transaction.  Additional steps and requirements are needed in order to use a POA.

How is a Trust created for the new property?
The Notario will write up the new trust and contact the bank to establish it.

How does the Trust get cancelled for the selling property?
This begins with the Realtor for the seller.  He/She will contact the existing trustee bank and submit the required fees and documentation to start the cancellation.

When should the seller start their Trust cancellation?
The seller should start the trust cancellation at the time of listing the property.  The trust will not be “officially” cancelled until the time of signing.

What type of Escrow is opened when a buyer finds a property?
A limited escrow is opened after a purchase contract is signed.

What original documents does the Seller need to provide to the Broker for the Notario?
The original tax bill, water bill, Escritura, Regimen de Propiedad en Condominio with Tabla de Valores e indivios.

Why do I need two appraisals?
There are two appraisals necessary.  One for value purposes (commercial) and one for tax purposes (catastro).  In cases of loans over $500K, they will need two commercial appraisals for value.

Can I use my own Appraiser?
Not at this time.  The bank will be assigning the appraiser in the subject property’s area.

What is considered a full loan package?
A full loan package is considered to be when the monies have been deposited into the limited escrow, the trust is in the process of being cancelled (if applicable) and all conditions on lender’s checklist are met.

Should the sales contract state when and how the Seller’s Realtor is paid?
Yes, the sales contract should state when and how the Selling Realtor is paid.

What does the Notario do?
The Notario is an appointed government official and a lawyer.  They act as a Title Agent would in the US, Notary, and they collect/distribute government fees.

How soon can I close my loan?
This depends on the completeness of the loan package and existing trust.