Mexican Mortgage & Financing Options for Foreigners: 2026 Guide

Most foreign buyers in Los Cabos pay cash — but that doesn't mean financing isn't available. Mexican bank mortgages, cross-border lenders, developer financing, and creative strategies using US home equity all work in practice. The key is understanding the higher rates and different mechanics.

Option 1: Mexican Bank Mortgages

Several major Mexican banks offer mortgages to foreign nationals, including Santander Mexico, HSBC Mexico, Scotiabank Mexico, and Banorte. These are real mortgages registered against the property (or the fideicomiso) through a Mexican notario.

Typical Terms

• Interest rate: 8-12% fixed (peso-denominated)
• Term: 15-20 years
• Down payment: 30-50% of purchase price
• Maximum LTV: 50-70%
• Currency: Most loans are in Mexican pesos; some offer USD options

Requirements for Foreign Borrowers

• Valid passport and Mexican visa (temporary or permanent resident)
• RFC (Mexican tax ID) — required for the mortgage application
• Proof of income (2 years of US/Canadian tax returns, pay stubs, or business financials)
• Mexican bank account (required by most lenders)
• Property appraisal by a bank-approved appraiser
• Credit history — Mexican banks may request a US/Canadian credit report

The approval process takes 30-60 days, which can delay closings. Build this into your purchase timeline. Mexican mortgages also carry higher closing costs than cash purchases — expect an additional 1-3% in mortgage-related fees.

Option 2: Cross-Border Lenders

Cross-border lenders specialize in financing Mexican property purchases for US and Canadian buyers. The two most active in the Los Cabos market are MILO Credit and Intercam.

These lenders offer USD-denominated loans, which eliminates currency risk — a significant advantage when Mexican peso rates can fluctuate 10-15% in a year. Typical terms include:

• Interest rates: 7-10% (often lower than Mexican banks)
• Down payment: 25-40%
• Terms: 10-30 years depending on the lender
• Loan amounts: $150,000-$3,000,000+

The qualification process is similar to a US mortgage — income documentation, credit check, debt-to-income ratios. The key advantage is that you deal with a US-based entity using English-language documents and wire US dollars.

Option 3: Developer Financing

Many Los Cabos developers offer in-house financing on pre-construction and new-build properties. This is the most common financing path for foreign buyers because it requires no bank qualification and no credit check.

Typical developer financing structure:

• Down payment: 20-30% at signing
• Construction payments: Monthly or milestone-based payments during the 12-24 month build period, often interest-free
• Balance at closing: Remaining 20-40% due at delivery

Some developers offer extended post-closing financing — 3-5 years at 6-8% interest. This is negotiable and varies by development. Larger projects in Quivira, Diamante, and Rancho San Lucas are more likely to offer structured payment plans.

Read our pre-construction vs. resale guide for more on the pros and cons of buying new.

Option 4: The US HELOC Strategy

The most financially efficient path for many buyers: take a home equity line of credit (HELOC) against your US property at 7-8% variable, then buy the Cabo property with cash. You get the negotiating power of a cash offer, avoid the Mexican mortgage process entirely, and keep your interest rate lower than any Mexican financing option.

Advantages:

• Cash buyer status — sellers prefer you, closings are faster
• Lower interest rates than Mexican mortgages (7-8% vs. 8-12%)
• US tax deductibility (consult your CPA on current rules for second homes)
• No Mexican bank bureaucracy or RFC requirement
• Flexible repayment — pay it off as fast or slow as you want

The downside: you're leveraging your US property to buy a foreign asset. If Cabo real estate values decline, you still owe against your US home. This strategy works best for buyers with significant US equity who are comfortable with the risk.

Option 5: Seller Financing

Occasionally available in the resale market, particularly for properties that have been listed for extended periods. Terms are fully negotiable — typical structures include 20-30% down with the balance paid over 3-7 years at 6-10% interest.

Seller financing is rare in prime communities but more common in the East Cape, Pacific side, and outlying areas where sellers may be motivated. A real estate attorney is essential to structure these deals properly, as the legal framework differs from US seller financing.

Financing Option Comparison

Option	Rate	Down Payment	Best For
Mexican Bank	8-12%	30-50%	Residents with RFC
Cross-Border	7-10%	25-40%	US/Canadian buyers
Developer	0-8%	20-30%	Pre-construction
US HELOC	7-8%	100% (cash)	Buyers with US equity
Seller	6-10%	20-30%	Motivated sellers