No more than 48 hours will have elapsed from the moment you deliver complete documentation to prove income and credit worthiness to the moment your loan is approved.
Based on more than 20 years in the Mexican Real Estate Market, we strongly encourage you to obtain your loan approval before entering into any binding agreement to purchase any home for the following reasons.
• Absolute certainty that the necessary funds for closing, including equity for down payment will be available at the agreed time with the seller.
• The ability to negotiate price having the certainty that all funds will be available.
• Certainty on closing costs and future monthly fixed payments to be made.
1. The approval shall be valid for 90 days after the confirmation date and any changes in the credit behavior reflected in your Credit Reporting Agencies score may cause such authorization to be modified or revoked if material indebtedness issues vary from those used for the Loan’s authorization.
2. The end-to-end process will last close to 60 days.
Once you have decided on the property to be acquired, TANA’s Associate will be in contact with the seller’s Real Estate Broker in order to obtain all the property’s legal documentation that is necessary to:
1. Obtain Due Diligence Report from Title Solutions.
2. Request the corresponding appraisal from an authorized appraiser that will be used for purposes of verifying that the sales price corresponds to the fair market value of the property and to be used by Public Notary for title transfer taxes.
3. Contact to begin the legal process for purposes of transferring title to the property to the Ownership and Guarantee Trust (OGT) under which you will be appointed as Second Beneficiary and TANA as First Beneficiary until the loan is fully paid.
• Homes located in Ejidos or Propiedad Comunal (semi private properties)
• Homes not located in urban areas where all utilities are available
• Homes which tracts of land are greater than four times the built area of the home
• Homes which immediate ownership title comes as a result of any kind of litigation
• Homes which span of life is less than 1.5 times the loan’s term as determined by appraiser
• Homes that have multiple units within the same tract of land and do not have a Condominium Regime dully incorporated that enables to legally separate the home intended to be acquired from the others.
Despite these restrictions, almost all of Mexico is open for you to buy your Dream Home in Mexico using the benefits of a fixed interest rate loan.
• Minimum home value $250,000 USD
• Loan originated and paid in USD in the USA
• 30% down payment. 70% Loan To Value (LTV)
• Fixed 9.5% interest rate during the term
• Fixed mortgage payments
• 10, 15 or 20 years terms available
• No prepayment fees if paid after 12 months
• Minimum 700 FICO Score
• 45% Debt to Income (DTI) based on gross income
• 24 months of credit experience reflected in Credit Report
• 2.5% Credit Approval Commission
• Client’s age at closing up to 70 years (Only 15-year term loans)
• Mexican residency is NOT required
• Mexican Tax Payers Number is NOT required
• NO subsequent fees
• Absolute certainty on all terms and conditions
As you may be aware, all foreigners must comply with literally ancient legislation that prohibits foreigners owning homes directly within what is called the “Zona Prohibida” or Prohibited Zone that is determined by the areas located 100 kilometers from the border lines inland and 50 kilometers from the high tide point inland. The OT will act as well as guarantee of the loan granted by Tana and therefore it will be an Ownership and Guarantee Trust (OGT) until the loan is paid in full.
The ownership on any home within what is called the restricted zone of 100 km inland from the border or 50 km inland from the shore line is done via a Mexican Ownership Trust (OT) which is a legal vehicle used since 1973. The OT allows foreigners to be appointed as First Beneficiaries under the OT with full ownership rights, including using, leasing and selling the property at any time without any restriction to any foreigner or Mexican individual or corporation. The Trustee is a Mexican Bank that only holds title for the benefit of the foreign investor as long as he or she decides to hold ownership. The OT has a 50 years’ renewable term and as of today there has never being an issue renewing the term of any OT.