Yes, U.S. dollar mortgages are available for purchasers of Mexico properties. North American banks have offered this service for several years now and the loan application process is very similar to what borrowers are used to back home.

Mortgages can be arranged for up to 75% of the property value with both fixed and variable interest rates available. There’s normally a minimum loan amount of $100,000 USD and the loan will be based on the lower of the sales price or appraised value.

Most of the mortgages are for acquiring a second home and require that the borrower has a permanent address in their home country at the time of funding. The borrower’s income in most cases needs to be from a source in their home country. Of course, retirement income counts, as does any income reported on the candidate’s tax statement.

Another option is to partially “cash out” of a property you already own that’s free of any debt. Just be aware the lender will require a new bank trust (fideicomiso) to be established. A current appraisal will be required and will determine the maximum amount you can “cash-out.”

When considering buying a remodeled property, particularly in the historic center of Mazatlán, be aware that appraisals can be unpredictable. It may pay to have an appraisal done in advance to see what the property is likely to appraise for, so you know how much of the property you can likely have financed. There are many beautiful properties in Centro but due to the irregularity of transactions and the individual uniqueness of each property, appraisals often do not match what the market is willing to bear.

U.S. mortgages have been rising in popularity and they’ve become a common solution for people looking to retire or invest in Mazatlán.

Kristopher DeSoto is the president of Invest Mazatlán. Originally from the United States, he now lives in Mazatlán full-time. Invest Mazatlán has helped many American and Canadian clients purchase and finance their real estate investments in Mazatlán. Call 981-2427 to find out what loan program is best suited to your needs. Or email Kristopher at kdesoto@investMazatlán.com.