Yes, you Can Buy Property in the U.S. as a Mexican Citizen!
Great news! Just like U.S. citizens, foreign nationals, including Mexican nationals, have the same rights to acquire and own real estate in the United States. Mexico is the second largest country of origin for foreign buyers in the USA.
Important Points to Note For Mexican Citizens Obtaining a U.S. Mortgage
Many Mexican buyers pay cash simply because they aren’t aware of the mortgage options available. Let’s clear up some misconceptions and share some points you need to be aware of:
- You don’t need U.S. credit history to secure mortgage financing from America Mortgages.
- All mortgage options are available whether you’re buying a house as a second / holiday home or as an investment.
- Last year, 33% of Mexico’s property purchasers offered cash. This is often due to a lack of awareness about available financing options from America Mortgages.
- You can qualify only on the rental income of the property. No personal income needs to be provided.
- If you are not a legal resident of the United States, you will need to file an annual tax return reporting any rental income earned from the property; however, with proper tax planning taxes due can be mitigated.
- You need a valid U.S. visa to be able to get a mortgage.
What are the differences between getting a mortgage in Mexico versus the U.S.?
Buying a home is a huge opportunity, whether it’s in Mexico or the U.S. On top of that, the process can be quite different between the two countries. We understand that, so let’s break it down so you know what to expect when applying for a mortgage in the U.S.
Down Payment
In Mexico, people prefer to pay for property with the majority in cash. It is common to make a down payment of as high as 50% and finance the rest with a bank loan. While in the U.S., most international property investors take out a mortgage with down payments as low as 25%.
Loan Terms
In Mexico, the average mortgage repayment period is much shorter—it typically lasts 10 years. The loan repayment period in the U.S. is much longer and can span 30 years and, in some cases, up to 40 years.
Amortization
In Mexico, mortgages are ‘fully amortizing’, which means every payment covers both the principal amount and the interest incurred. This works a bit differently in the U.S., where There are options for a principal and interest loan and an interest-only loan.
To qualify for a bank loan in Mexico, you need a good credit history and must earn at least three times the monthly loan payment. For America Mortgages loans you don’t need U.S. credit and can qualify based on the rental income of the property alone.
Ownership
In Mexico, the bank owns the property until the loan is fully paid off. Whereas in the U.S. you own the property once the closing costs are covered and the documents are signed. At the same time, the bank holds a lien on the property until the loan is paid off.
What are the Documents Required for a U.S. Mortgage Approval?
The following documents are needed based on citizenship status when obtaining a U.S. mortgage:
- Copy of passport, Green Card, or a U.S. visa
- Two months of bank or financial statements showing you have the funds for down payment and any closing costs (purchase)
- Tax Identification Number (ITIN) if available
- Income letter from your employer if employed or your accountant if self-employed OR you can qualify on the rental income of the property
How Can Mexican Citizens Obtain a U.S. Mortgage?
America Mortgages can help you obtain a U.S. mortgage. As a company, our only focus is providing U.S. mortgage financing for non-U.S. residents and U.S. expats. If you’re interested in learning more, reach out to us at [email protected] or visit our website at www.americamortgages.com. Additionally, if you’d like to schedule a commitment-free meeting with one of our U.S. loan officers to explore your U.S. mortgage options further, you can do so using our 24/7 calendar link.
FAQs
How can Mexican citizens establish a credit history in the U.S.?
Mexican citizens can establish a credit history in the U.S. by obtaining a secured credit card, opening a bank account, and making timely payments on any U.S. bills or loans.
Are there specific lenders that cater to Mexican nationals in the U.S.?
Yes, America Mortgages provides U.S. mortgages for foreign nationals, including Mexicans.
What impact do exchange rate fluctuations have on U.S. mortgage repayments for Mexicans?
Exchange rate fluctuations can affect the cost of mortgage repayments if the borrower’s income is in pesos while the mortgage is in dollars. It’s important to consider these fluctuations when planning repayments.
Is a Social Security Number required for Mexicans to get a mortgage in the U.S.?
A Social Security Number is not required, but having one or an ITIN (Individual Taxpayer Identification Number) can simplify the process. America Mortgages does not require an investor to have either to obtain a U.S. mortgage.
What is the minimum down payment required for Mexican citizens to secure a U.S. mortgage?
The minimum down payment for foreign nationals, including Mexicans, is 25% of the property’s purchase price.
Can Mexicans refinance their U.S. mortgage?
Yes, Mexican citizens can refinance their U.S. mortgages, provided they meet America Mortgages’ requirements and demonstrate their ability to repay the loan.
