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Baja California’s privileged and diversified geography including beaches, deserts and mountains, proximity to Southern California, great weather and Mexican hospitality have long been an attraction and well kept secret for generations of Americans.
But Baja California’s time has come, now the Tijuana-Ensenada coastline is one of the most attractive real estate opportunities and people from all walks of life, age groups and investors are looking to buy, develop or take advantage of the excellent investment opportunities available in this region.
- Who provides the funds in this program?
Funds are provided by U.S. lenders - How long does it take to close on the loan?
Closing time will depend on the location of the unit in Mexico; it will range from 30-60 days once you submit your complete application - How can I submit my application?
Applications can be submitted via e-mail, fax or DHL, FEDEX, etc - What is Stewart Title’s role?
Stewart Title will serve as your point of contact throughout the whole process, from the moment you call to inquire about financing until closing takes place - Is the property in Mexico taken as collateral?
Yes - What types of loans are available?
Housing, land and construction loans, as well as cash out refinance. Consult your Stewart Title representative, as not all lenders offer all options - What types of applications are accepted?
Full Document Applications, as well as Partial Document and Stated Income - What are the closing costs?
Closing costs may vary from one region to another. Your Stewart Title representative will provide you with a detailed Good Faith Estimate - How can the property be registered?
The property can be registered under your individual name or under a corporation - What paperwork is used to apply?
Your Stewart Title representative will send you the loan package, which contains a checklist of the forms and supporting information required - Is a credit report pulled? What is the minimum score to qualify?
Yes, Stewart Title works in coordination with a U.S. Underwriter to pull a credit report. The minimum credit score is 680 - What are the main requirements to be approved?
Your Fico score Back Ratio (Monthly Debt Totals / Gross Monthly Income)
Fare to Income (Monthly Payment / Gross Monthly Income) - Do I have to be present at closing?
Yes, you will have to attend closing. If you are not going to be able to attend, Stewart Title would have to request issuing a Power of Attorney (POA) to have somebody sign on your behalf - What type of interest rate is available?
Lenders have a variety of options with interest rates that may rate between 8% to 10% annual. Fixed and adjustable options are available - What happens if the rates change?
Should the rate increase, your monthly payment will increase accordingly if your loan was closed with an adjustable interest rate. If you closed with a fixed interest rate, it should not change regardless of how US Prime behaves - Are there any prepayment penalties?
Some lenders do have pre payment penalties. Consult with your Stewart Title representative who can confirm if the option you selected has penalties for early payment - Are co-borrowers allowed?
A co-borrower is allowed, he/she must be direct kin (Mother, father, spouse, son, daughter, etc.) - Are there non refundable fees?
Yes, there are non refundable fees that will be asked of you when approval is confirmed. These may involve (but not limited to) the appraisal cost, the SRE Permit, the Title Search and the Notary fee - Why is the property put into a Guaranty Trust?
A guaranty trust is less expensive to set up than a conventional mortgage and provides the lender with a quicker foreclosure process in case it is necessary. Once the property is registered under your name or your corporation, it will be put in the guaranty trust - Is Title Insurance required?
Yes, a Title Insurance will be required by the lender (Lender’s Policy). The lender will be named as beneficiary for the loan amount. It is recommended that you acquire a Title Insurance for the sale price of the property - Is Natural Disaster Insurance required?
Yes, it is required for housing and construction loans. Stewart Title will present you with an option for coverage, and the first year is to be paid upfront on closing day - Are there any restrictions when purchasing Real Estate in Mexico?
The Constitution of Mexico establishes restrictions of ownership by Foreigners in Border and Coastal properties, 100 kilometers a long the Borders and 50 Kilometers a long coasts, such boundaries are called “Restricted Zone,” where no foreigner can acquire property directly. Therefore and in accordance with the Foreign Investment Law, it is required for foreigners to acquire property through a trust created by a Mexican Bank. Such trust has a period of 50 years and can be extended for the same period
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