Buying a house in Mexico from the United States How to do it? We live in a globalized world. Human history has been shaped by migrations, and in a globalized world, they are becoming more frequent. Central American citizens emigrate to the United States and Europe in search of a better future, and Americans retire to Costa Rica, Peru or Spain to enjoy good weather and a more relaxed retirement. As of 2020, the United Nations reported that more than 272 million people had emigrated. Approximately 51 million immigrants arrive in the United States each year, with Mexico being the second most common country of origin (worldwide) and the first if we just consider the American migrants. According to the United Nations , the majority of people who leave their countries are young people and men, although there has been a change in this trend that includes women and children as well.
It is in the United States that many migrants find what they are looking for: economic freedom; however, several Americans are also interested in learning about the Aztec country. It would explain why so many people from the United States and abroad are trying to buy houses in Mexico. Can it be done? If so, how? Is it easy to do? Relatively. Discover all the details!
Also Read : Down Payment Grants Assistance First Time Buyer
Highlights of this Post
Can you buy a house in Mexico from the United States?
Since Mexico passed its Foreign Investment Law in 1973, the amount of property purchases in Mexico by Americans has skyrocketed. The only properties that would not qualify would be those within 50 kilometers of the coast or within 100 kilometers of the Mexican border. In this case, the foreign buyer must sign a trust in a bank of Mexican origin . Another way that foreigners use to buy real estate in Mexico is through a corporation , but we will talk about it. Mexicans living in the United States and Canada can also buy a home in Mexico without leaving the US . In general, the entire procedure is completed through Ban comer, which is a Mexican bank.
Also Read : Government First Time Home Buyer Programs and assistance
How to buy a house in Mexico from the USA?
A buyer from the USA can purchase a property in Mexico in several ways depending on 1) their economic capabilities and 2) their country of origin. Foreigners typically hire a real estate agency and pay in cash or travel to close the deal personally. Mexicans can buy a house or apartment in their country regardless of their immigration status.
AMPI ( Mexican Association of Real Estate Professionals ) members have extensive knowledge of the property market in Mexico and can advise you on your purchase or provide professional support.
Also Read : First Time Home Buyer Grants in Texas
I am Mexican, how do I buy a house in Mexico from the United States?
It doesn’t matter if you are a citizen of the United States or a citizen of another country if you want to buy a house in Mexico. If you apply through Bancomer or BBVA Compass, you can get a mortgage and finance up to 90% of the value of the property from the USA. A significant appeal is that in this case, the mortgages have a fixed rate, which may be more difficult to find in other banks.
There are certain requirements you must meet in order to purchase a home in Mexico from the United States. Below is a list of these requirements. The bank will review your file after you submit the mortgage application and will approve or deny the credit based on your specific circumstances.
What do I need to buy a house in Mexico from the United States?
- Must have Mexican nationality.
- Down payment of at least 10%.
- Have a consular registration, an INE, or a passport.
- Make sure your financial situation is stable.
- You must have lived in the United States or Canada for at least six months.
- You must appoint one of your family members to represent you in Mexico.
- Have at least one year of experience at the job you’re applying for.
- Have a minimum age of 25. BBVA accepts applicants between 18 and 85 years of age.
- Applicants must prove that the funds they are applying for are from a legal source. A W-2 form or pay stub can be used for this.
- Having a good credit score in the United States, Canada, or Mexico. It would be best if you had a good credit rating in your country of origin and residence.
It is important to note that the property must also meet a requirement that is mainly concerned with its cost. Mortgages from Bancomer and BBVA Compass are available only for homes and apartments costing 180,000 Mexican person or more.
Documents to buying a house in Mexico from the usa
To complete your application, you will need the following documents:
- Valid identity document, most commonly a passport (though a copy of the INE or consular registration can also be provided).
- Proof of nationality . A Mexican born in an Aztec country would need a birth certificate, while someone with dual nationality would need an immigration certificate.
- Copy of the marriage certificate . When the buyer is married, this is required. If the marriage took place in Mexico, only a certified copy will be needed and An original apostilled document for a marriage in the United States or Canada.
- Proof of address. A copy of a bill for a home utility or lease payment may be consigned.
- Payment rate . TIt can be purchased mainly from BBVA Compass for 175 dollars (in principle). The bank will not refund this fee if the loan is denied.
- Proof of income . The pay stub, W-2 forms and 1099 forms in the case of self-employment, etc. You can also submit the latest federal tax returns, as well as account statements.
In addition to your business license, the last three company account statements and a copy of the tax return should be deposited at the bank if you own your own business.
You may be asked to provide more documents by the bank to verify the origin of the funds or to confirm the amount of money you earn per year. Make sure to provide as much documentation as possible to the bank.
Characteristics of mortgages to buy a house in Mexico
When you purchase a home in Mexico with a mortgage from the US or Canada, there are some advantages. You can do it via an agency as long as you have the money (after all, why pay interest if you can save it?). If you only possess the initials but wish to become the owner of your home, Bancomer or BBVA Compass will be your best ally:
Also Read : What is a USDA home loan?
- There are several payment terms available, from 5 to 20 years.
- Payments can be made from the United States. Not only that, but the debt is issued in Mexican pesos and the interest rate is fixed.
- Loan amounts can reach 90% of property value. Down payments will not be as difficult to come up with.
- Mortgages allow you to buy insurance in the country, which is always important, especially if you want medical coverage when you travel to Mexico or life insurance.
- No matter what your immigration status is, you can qualify for a mortgage. If you are in the process of regularizing, you can apply for an ITIN to pay your taxes.
- Getting a mortgage in Mexico will allow you to develop or improve your credit in that country. In addition to these types of loans, you can also get credit cards and personal loans.
How much does it cost to buy a house in Mexico?
There are a number of factors that will influence the price of a Mexican home you buy from the United States, including your purchasing method (on credit or cash) and your nationality (Mexican or foreign). You should expect to pay the following amounts when you purchase a new property as a Mexican and through a mortgage:
- Costs associated with property appraisals
- 10% of the value of the house as initial
- credit approval 10% of the value of the house as initial loan approval 2% fee
- A fee of $ 780 (which covers the costs of checking the file) is required for the origination of each file.
- There is a maximum notarial fee of 9% of the property’s value
On the acquisition tax of new properties in Mexico
There is a different tax code for each district in Mexico. How does this work? Taxes on property transmission are based on where the house or apartment is located, and are paid by the buyer. Below is a table that includes federal district taxes to give you an idea of the costs:
| Property acquisition or transfer tax in DC, Mexico | ||
|---|---|---|
| Property value
(in Mexican pesos) |
Property value
(in US dollars) |
Taxes
(in Mexican pesos) |
| Up to 87,159.70 | $4,368 | 152.31 |
| From 87,159.70 to 139,455.47 | From $ 4,368 to $ 6,990 | 0.03163% of property value |
| From 139,455.47 to 209,183.01 | From $ 4,368 to $ 10,485.26 | 0.03261% of property value |
| From 209,183.01 to 418,366.13 | From $ 10,485.26 to $ 20,970.54 | 0.03261% of property value |
| From 418,366.13 to 1,045,915.32 | From $ 20,970.54 to $ 52,426.34 | 0.03696% of property value |
| From 1,045,915.32 to 2,091,830.65 | From $ 52,426.34 to $ 104,852.68 | 0.04565% of property value |
| Over 2,091,830.65 | Over $ 104,852.68 | 0.04565% of property value |
About the notary fee (notarial expenses)
If you plan on buying an apartment or house in Mexico, you will need to pay notarial fees. Exactly what do notaries do? Make sure the buyer and seller have all the paperwork for the house in order and that they have followed all the legal procedures. In addition, it will attest to the authenticity of the date and signature on the sales document, which is essential for the subsequent search of the property.
In Mexico, how much does a notary public charge? This will depend on the property’s value. Typical charges in DC, Mexico would be:
| Notary fees for DC, Mexico | ||
|---|---|---|
| Property value
(in Mexican pesos) |
Property value
(in US dollars) |
Notary fees
(in Mexican pesos) |
| Up to 132,791 | $6,656 | 4,829 |
| From 132,791 to 265,584 | From $ 6,656 to $ 13,312 | 1.125% of property value |
| From 265,584 to 531,168 | From $ 13,312 to $ 26,625 | 0.975% of property value |
| From 531,168 to 1,062,333 | From $ 26,625 to $ 56,249 | 0.825% of property value |
| From 1,062,333 to 2,124,670 | From $ 56,249 to $ 106,499 | 0.675% of property value |
| From 2,124,670 to 4,249,340 | From $ 106,499 to $ 212,998 | 0.525% of property value |
| From 4,249,340 to 8,498,680 | From $ 212,998 to $ 425,995 | 0.375% of property value |
| From 8,498,680 to 16,997,358 | From $ 425,995 to $ 851,990 | 0.225% of property value |
| More than 16,997,358 | Over $ 851,990 | 0.075% of property value |
Frequently asked questions
Can An American Buy A House In Mexico?
Yes, anyone not only American, African, Canadian, European anyone can buy a property in Mexico, the only condition is that anyone who is willing to buy the house or any property in Mexico, must fulfill the eligibility criteria to buy a property in Mexico from usa.
What are first time Housing Grants in Mexico?
Housing grants for first time home buyer programs to motivate and help those buyer that are buying the house for first time as well as has some financial issue. the Mexican government is supporting these first time home buyer through various grants and programs, anyone can get for more information at nearest grant office.
