MEXICO CAPITAL MORTGAGE  is a Los Cabos Mexico based mortgage brokerage offering US dollar loans to Canadian and American citizens for the purchase of homes, condos, raw land and new home construction.

MCM OFFERS EVERY COMPETITIVE LOAN PROGRAM currently available in the marketplace and does so with the service and expertise of a market leader.  Key relationships with developers, attorneys/notaries and appraisers allow MCM to offer services unequalled in Mexico.  With more than 5 years of experience in the market place and hundreds of residential transactions in Mexico, MCM has successfully bridged the gap between promising and providing a reliable cross border product and service.

THE MCM SOLUTION ENCOMPASSES EVERY LOAN PROGRAM currently available in the marketplace, 100% conversion ratio for borrowers once approved and a smooth seamless process for buyers, sellers and Realtors alike.

SERVICE EXCELLENCE - In post closing surveys conducted by our lenders, MCM has repeatedly earned top honors for our mortgage process and customer satisfaction.

MEXICO BASED - MCM is the only Mortgage Brokerage originating processing and closing from Mexico soil giving us the required leverage to deal with numerous Mexican 3rd parties required for legal transfers of title quickly and effectively. We are your eyes and ears on the ground in Mexico.

REALTORS #1 CHOICE -  MCM's business has proven to be 95% referral driven coming from our local Realtors in the markets where we physically operate. We are our Real Estate communities #1 choice for mortgage services.

MCM LOAN PROGRAMS

MCM  has partnered up with every source of funding in Mexico to offer the widest portfolio of lending products Mexico has to offer. MCM offers over 150 different loan programs with some of the basics outlined below.

RESIDENTIAL PURCHASE / CASH OUT REFINANCE

30  year loans starting at 6.25%      20 year loans starting at 5.75%

CONSTRUCTION

MCM is now lending at 65% loan to value utilizing the land as collateral. Rates from 7.5% with approved builders. Construction to permanent loan with a 1 time close and no maximum loan amount.

CASH OUR REFINANCE

Clients can now cash out 50% of appraised value with a maximum loan amount of $1,000,000.00  15/20/25/30 year adjustable and fixed rate loans with rates from 6%

MCM PURCHASE / REFINANCE OPTIONS  3/1 Arm

FICO SCORE            50% LTV OR LESS        50.1%-60% LTV        60.1%-75% LTV

720+                       6.250%                       6.375%                      NA

690-699                  NA                               NA                              NA                      

680-689                  NA                               NA                              NA

5/1 ARM

FICO SCORE           50% LTV OR LESS         50.1%-60% LTV        60.1%-75% LTV

720+                      7.000%                         7.125%                     NA

690-699                 NA                                 NA                             NA

680-689                 NA                                 NA                             NA

FIXED RATE LOAN

FICO SCORE          50% LTV OR LESS          50.1%-60% LTV        60.1%-76% LTV

700+                     7.75  %                          7.875%                      NA

690-699                NA                                  NA                              NA

680-689                NA                                  NA                              NA    

***All rates are posted for 30 year and 25 year terms. To reduce rate further, a 20 year or a 15 year term can be selected for a reduction in rate of .50%  ***All loans come with a 2 year pre payment penalty.  2% in year 1 / 1% in year 2.

CONSTRUCTION LOAN OVERVIEW

QUALIFICATION CRITERIA -  Borrower's need a 680 or above credit score to qualify. Loans are available to Canadian and US citizens in US dollars.  Our bank will be placed in first lien position there for the land needs to be owned free and clear.  We require Canadian and US taxes to qualify, if tax returns do not show sufficient income we can use personal bank statements as an alternative.

FACTORS FOR DETERMINING CONSTRUCTION LOAN AMOUNT - There is no maximum loan. Loans are made at 65% LTV. An appraisal is done of the lot and the architectural plans and a future value is determined based on comparables in the area.  Our bank will lend 65% of this appraised value. Our bank does require that 30% of the home be completed before the first draw on the loan, but if you use our preferred builder, they will build the first 30% with no out of pocket costs to the client. Appraisals are performed prior to each draw on the construction loan culminating with a final appraisal upon a complete product at which time this loan transfers to a traditional mortgage loan. Interest rates and terms are outlined by clicking on the MCM link at the right side of this page.

ASK FOR DETAILS ON CONSTRUCTION LOANS FROM 10 15 OR 20 YEAR TERMS.

FREQUENTLY ASKED QUESTIONS ABOUT MEXICO MORTGAGES

HOW MUCH DOWN PAYMENT IS REQUIRED?  In Mexico the required down payment is 25% minimum.  This applies to loans under $1,000,000.00  For larger loans a higher percentage is required. The down payment is not required until just prior to the actual closing and funding of the transaction and the funds will be sourced to ensure they are coming from the borrower.

ARE THE INTEREST RATES IN MEXICO HIGHER THAN IN CANADA AND THE US? Yes. The reason is that it is always a higher risk for a bank to collateralize a foreign property than a local property. This higher risk equates to a higher interest rate.

IS THE INTEREST ON MY MORTGAGE TAX DEDUCTIBLE?   MCM's residential mortgages are funded in US dollars collateralizing Mexico real estate available to US and Canadian citizens.  The liability shows up on US credit according to US tax law IRS regulation section 163(C) as well as publication 936, interest paid on primary and secondary residences up to an aggregate one million dollars in loan amount is tax deductible.

HOW LONG DOES IT TAKE A LOAN TO FUND AND HOW IS MY INTEREST PROTECTED IN THE CONTRACT?  A loan generally takes 60 to 90 days to fund.  We always ask for a 90 day closing time frame in the real estate contract to provide ample time to close and fund the loan. We also request a 30 day financing contingency be placed in the real estate contract to receive FULL approval from the bank before any earnest money deposits become non refundable so as to protect our clients interests.  

WHAT IS THE PROCESS FOR A MORTGAGE IN MEXICO?  Once the client hs been prequalified for a loan the MCM broker provides the client a portfolio of options, a selection will need to be made and the broker will provide the client with a list of items that need to be submitted for the loan to the bank. Once these documents have been provided we turn the loan over to the processing department and our processing manager will review the packet.  The responsibility of the processing department is to submit the loan to the lender and request any additional documents from the client that may have been left out or are still required from our bank.  Once the loan is approved by the lender an approval letter is sent out to all parties, the borrower, buyer/sellers agents and the seller to ensure all parties are informed of the "approved" status.  At this point an introduction is made to P&H Closings.  They are the legal counsel who work closely with MCM and our bank to ensure all permits, appraisals, and title work is executed as per the Lenders strict criteria.  They will be requesting additional documentation from the client and also requesting pre closing costs which are due directly to the various 3rd parties required by Mexican law.  Once all the pre closing steps have been completed by P&H Closings, we schedule the closing and proceed with the title transfer and funding of the loan.

 DO I NEED TO BE IN MEXICO FOR MY CLOSING?  No. Real estate closings in Mexico are not an exact science as far as being able to set a close date which is far out. Many clients opt to have their Realtor or attorney sign for them when the closing occurs.  This is done through a limited Power of Attorney and is created by our legal team.  Your loan documents are signed at your home in Canada or US prior to the closing and it is only the deed that is signed in Mexico at the closing table.

IF I PAY CASH NOW AND CHOOSE TO PUT A MORTGAGE ON MY PROPERTY LATER IS THIS POSSIBLE?  Yes, this is possible. We can cash out your home up to a maximum of $1,000,000.00 at a maximum of 50% of the appraised value. A whole new closing is required where your title is recreated which makes this an expensive procedure.  It is for this reason that we advise clients that if they feel they might in the future ever need to pull equity from their Mexico property that they do so at the time of the initial closing.  This allows you to mortgage a full 75% of the property as opposed to 50% and you do not need to pay double closing costs for the 2 separate transactions.

ARE PROPERTY TAXES AND INSURANCE INCLUDED IN THE LOAN IN MEXICO?  No. Property taxes and insurance are not included in mortgage payments.  Property taxes are paid every two months to the city, but if you pay at the beginning of each year you will receive a discount that can be substantial.  Count on the taxes being .1% to .15% of the purchase price for the year which is minimal.  For insurance, in many cases it will be included in your HOA payments but it is usually required by the lender to have the property covered for the dollar value of the mortgage at minimum. Our attorneys can suggest several options which you can quote and find the best package for your needs during the loan closing process.

IS IT SAFE TO BUY REAL ESTATE IN MEXICO AND WILL MY INTERESTS BE PROTECTED?  This is a very common question to first time buyers and visitors to Mexico.  The answer is a definite YES.  The method of taking title in Mexico is called a Fideicomiso (fee-day-e-co-mi-so).  Title is not taken directly in the name of the buyer, but is taken through a Mexican Bank called a Trustee Bank.  The buyer is the beneficiary to the "trust" (fideicomiso). This is how title has been taken by foreign citizens since 1972.  The added protection this gives you is that all rights and safe guards a large Mexican bank would have with real estate owned are passed along to you with none of the weaknesses.  In the case of bank insolvency, the "trust" is simply transferred to another trustee bank as your trust is not an asset of the bank.  The trustee bank acts merely as a steward.  There is no such thing as a good trust or a bad trust.  All trusts are created equal with equal rights. It is a 100% SAFE method of purchasing real estate in Mexico.

REAL ESTATE CLOSING COSTS IN MEXICO

CLOSING COSTS IN MEXICO  are paid on all legal transfer of titles on real estate transactions. Account for between 5% to 8% of the purchase price on transactions involving mortgages. There are a variety of 3rd parties required for the closing of real estate transactions and this closing total covers all fees with funds being disbursed through escrow and only upon signature of our borrowers.  For a complete break down of the types of fees involved in the mortgage closing process click on the MCM link at the right side of this page. 

MEXICO CAPITAL MORTGAGE - OUR PROMISE TO YOU.

As a service provider, we realize that if we do not provide the service, then what do we provide?  In a market with little competiton in the way of product selection and most all companies carrying the full array of products, we have made it our mission to be THE guarantee of customer service and professionalism.  We are THE one stop shop managing everything from your loan to your legal transfer of title and every step in between.  Our fee estimates are accurate, we ensure no surprises at closing and handle every client with ethics and clarity.  You will experience no "selling" from this company.  Our local supporting real estate communities are our primary source of business with 95% of our business coming from this avenue.  With a following in our respective operating markets we have earned the trust and respect of these real estate communities and thus, their continued business.  Our legal team is the best in the business with dual Mexican and US law degrees giving our clients every level of comfort and protection in this cross border process.  The loaning of money only makes sense if it is the best financial route for our clients to take and we endeavor to provide nothing less than beneficial long term financial solutions for our clients. THIS IS OUR GUARANTEE TO YOU.

Sincerely,

Ryland Apsey President Mexico Capital Mortgage  Toll Free 1-866-319-0677 US 805-617-0295

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Let us help you find your Mexico Property.

YOUR Los Cabos Real Estate Professional

Connie Meyerhoff

Baja Properties  connie@bajaproperties.com

From USA and Canada 011-521-624-122-2237 or 1-480-393-0639