Mortgages for U.S. and Canadian buyers of property in Mexico
Finance a home in Baja, Los Cabos, Puerto Vallarta or the Riviera Maya with a U.S. dollar mortgage, underwritten the way you’re used to. We work alongside the notary and trustee bank so the fideicomiso, permit and closing happen on schedule.
- Loan currency
- U.S. dollars
- Borrowers
- U.S. and Canadian citizens
- Programs
- Full doc, bank statement, 30-year fixed
- Mexican residency
- Not required
Why so many Americans and Canadians are buying in Mexico
For buyers from the U.S., Mexico has become the leading destination for second homes abroad. The reasons are practical as much as they are about lifestyle.
Close to home
Most of Mexico’s coastal markets are a two to four-hour flight from Southern California, and northern Baja is a drive. You can use the home for a long weekend, not just once a year.
Lower carrying costs
Annual property tax (predial) is a fraction of what California owners pay, often around 0.1% to 0.3% of assessed value. Day-to-day costs of living are lower too.
Rental demand
Cabo, Puerto Vallarta and the Riviera Maya draw visitors year-round. Many owners rent their home when they are not using it to help cover the costs of ownership.
A clear legal path
Foreign ownership has been codified for more than 30 years. The fideicomiso is a routine, well-understood structure, and every purchase closes before a federally licensed notary.
Retirement and remote work
Warm weather, established English-speaking communities, and good flight connections make Mexico a natural fit for retirees and for people who can work from anywhere.
Diversification
A home in Mexico is real property in a second economy. For many buyers it is both a lifestyle decision and a way to hold part of their wealth outside the U.S. housing market.
Markets we finance
- Baja California
- Rosarito, Ensenada, Valle de Guadalupe
- Baja California Sur
- Cabo San Lucas, San José del Cabo, La Paz
- Riviera Maya and Quintana Roo
- Cancún, Playa del Carmen, Tulum, Puerto Morelos, Cozumel
- Pacific coast
- Puerto Vallarta, Riviera Nayarit, Mazatlán
What is a fideicomiso?
Mexico’s Constitution does not allow foreigners to hold direct title to land in the restricted zone: everything within 50 kilometers (31 miles) of the coast or 100 kilometers (62 miles) of an international border. That covers nearly every beach market Americans buy in.
Since 1993, Mexico’s Foreign Investment Law has solved this with the fideicomiso, a bank trust. A Mexican bank holds legal title as trustee, and you are named the beneficiary with full rights to use, rent, improve, sell and pass on the property. The bank cannot sell or use the property; it acts only on your instructions.
Outside the restricted zone, in cities such as Mexico City, Guadalajara, San Miguel de Allende and Mérida, foreigners can hold title directly in their own name after agreeing to the government’s standard foreign-ownership terms.
Who does what in a fideicomiso
- Settlor (fideicomitente)
- The seller, who transfers the property into the trust at closing.
- Trustee (fiduciario)
- A Mexican bank that holds legal title and follows the beneficiary’s instructions.
- Beneficiary (fideicomisario)
- You. You hold every practical right of ownership and receive any appreciation.
- Substitute beneficiaries
- The people you name to inherit your rights, without going through Mexican probate.
Expect a one-time setup cost, including the foreign investment permit, and an annual trustee fee, typically around US$500 to $1,000.
The “99-year lease” is a myth
Many people still believe foreigners can only lease property in Mexico, usually for 99 years. It isn’t true, and it never applied to a fideicomiso.
The idea dates from decades ago, before the fideicomiso existed, when foreigners had no legal way to own coastal land and some used long-term land leases instead. Today’s fideicomiso is a trust, not a lease. It has a 50-year term that you or your heirs can renew for further 50-year terms, and it carries every right a lease does not.
| Comparison | A lease | A fideicomiso |
|---|---|---|
| What you hold | The right to occupy for a set term | All beneficial ownership rights in the property |
| Term | Ends on a fixed date | 50 years, renewable for further 50-year terms |
| Sell the property | Usually not; you can only assign the lease if allowed | Yes, and the sale proceeds are yours |
| Rent it out | Only if the lease permits | Yes, including short-term vacation rentals |
| Renovate or build | Usually needs the landlord’s consent | Yes |
| Leave it to your heirs | Only for the remaining term | Yes, by naming substitute beneficiaries |
| Appreciation | Belongs to the owner of the land | Belongs to you |
Mexico loan programs
Financing for a home in Mexico used to mean paying cash or borrowing at high rates from a Mexican bank. Our programs follow U.S.-style underwriting, are paid in U.S. dollars, and are built for borrowers who live and earn in the U.S. or Canada.
Full documentation
Underwriting modeled on Fannie Mae guidelines that U.S. borrowers already know: credit score, two years of income documented with W-2s or tax returns, debt-to-income ratio and verified assets.
Good for: Salaried and W-2 borrowers, retirees with pension and Social Security income
12 or 24-month bank statement
For self-employed borrowers whose tax returns understate their real income. We qualify you using deposits from 12 or 24 months of personal or business bank statements instead of tax returns.
Good for: Business owners, 1099 contractors, commissioned professionals
30-year fixed rate
A traditional fully amortizing mortgage with the same rate and payment for 30 years, in U.S. dollars. Shorter terms are available if you want to pay the home off sooner.
Good for: Buyers who want a predictable payment and no currency risk on the loan
Down payment, loan amount and eligible property types depend on the program and the property. Ask us about condominiums, single-family homes and new construction.
Apply for a Mexico loanHow buying in Mexico works
Every purchase closes before a notario público, a federally licensed attorney who verifies title, calculates taxes and records the sale. Expect a few weeks to two months from contract to closing.
- 1
Get pre-approved
Apply with us before you shop. You will know your budget and can make a stronger offer.
- 2
Make an offer
Your agent prepares a purchase agreement (promesa de compraventa) with a deposit held in escrow.
- 3
Permit and trust
The notary obtains the foreign investment permit from the Ministry of Foreign Affairs and sets up your fideicomiso with a Mexican bank.
- 4
Appraisal and title
The property is appraised and the notary confirms clean title and that the land is not ejido (communal) land.
- 5
Close at the notary
You sign before the notario público, the purchase is recorded in the Public Registry, and the trust is issued in your name as beneficiary.
Closing and ownership costs
Closing costs in Mexico are paid mostly by the buyer and are front-loaded. Budget roughly 5% to 8% of the purchase price. The notary gives you the exact, binding figures before you sign.
| Cost | Typical amount | When |
|---|---|---|
| Acquisition tax (ISAI) | 2% to 5% of value, set by the municipality | At closing |
| Notary fees | About 1% to 2% | At closing |
| Registry, appraisal and certificates | Varies by property | At closing |
| Fideicomiso setup and permit | A one-time fee set by the trustee bank | At closing |
| Fideicomiso annual fee | About US$500 to $1,000 | Every year |
| Property tax (predial) | About 0.1% to 0.3% of assessed value | Every year |
Estimates for general planning only. Taxes and fees vary by state, municipality and property, and are set by the notary and trustee bank.
Questions about buying in Mexico
Can a U.S. or Canadian citizen legally own property in Mexico?
Yes. Outside the restricted zone, foreigners can hold direct title. Inside the restricted zone — within 50 kilometers of the coast or 100 kilometers of a border — residential property is held through a fideicomiso, a bank trust that gives you full ownership rights.
Is buying in Mexico just a 99-year lease?
No. This is the most common myth about Mexican real estate. A fideicomiso is a trust, not a lease. It runs for 50 years and can be renewed for additional 50-year terms, and as beneficiary you can sell, rent, renovate and pass the property to your heirs.
Can the bank take my property?
No. The bank acts only as trustee. It holds title on your behalf and must follow your instructions. Trust property is not part of the bank’s own assets, so if the bank were sold or failed, another bank would take over as trustee.
What happens at the end of the 50 years?
You or your heirs renew the trust for another 50 years. Renewal is an administrative step handled through the trustee bank, and it can be done before the term ends.
Do I need to be a resident of Mexico to get a loan?
No. Our Mexico programs are designed for U.S. and Canadian citizens who live and earn their income in the United States or Canada.
Is the loan in dollars or pesos?
In U.S. dollars, so your payment does not change with the exchange rate.
What are closing costs in Mexico?
Buyers typically pay about 5% to 8% of the purchase price, mostly the municipal acquisition tax, the notary’s fee, registry costs and the fideicomiso setup. The notary provides the exact figures before you sign.
Can I buy property on ejido land?
Not safely. Ejido land is communally held and cannot be sold to foreigners until it has been formally converted to private property. The notary’s title review should confirm this, and we only finance properties with clear private title.
This page is general information, not legal or tax advice. Mexican real estate law, taxes and fees change and vary by location. Work with a Mexican notario público and your own legal and tax advisors on any purchase. Loans are subject to credit approval, property eligibility and program guidelines.
Your home in Mexico starts with a pre-approval.
Know your budget before you visit. Apply in about 15 minutes and a loan advisor will contact you within one business day.