Quick Answer
Yes. A common strategy is taking a home equity line of credit (HELOC) against your US property to fund a Mexico purchase. This gives you US interest rates (typically 7-9%) rather than Mexico mortgage rates (10-14%). The Mexico property is purchased with what appears to be cash, simplifying the transaction. Consult your US lender about HELOC terms.
Detailed Answer
Using US home equity is one of the smartest financing strategies for purchasing property in Los Cabos. A HELOC (Home Equity Line of Credit) allows you to borrow against the equity in your US property at domestic interest rates — typically 7-9% — which are significantly lower than cross-border Mexico mortgage rates of 10-14%. The funds are wired to the notario's trust account, and from the seller's perspective the transaction looks and behaves exactly like a cash purchase.
The advantage of this approach is threefold: you get a lower interest rate, you avoid the documentation complexity of a Mexico-based mortgage, and your closing timeline is faster because there is no foreign lender underwriting process. Most US banks and credit unions offer HELOCs with minimal closing costs and flexible repayment terms. The interest may also be tax-deductible on your US return depending on how the funds are used — consult your CPA for specifics.
This is a strategy our team sees frequently among experienced buyers, and we are happy to walk you through the logistics. The key is getting your HELOC approved and funded before you start making offers so you can move quickly when the right property appears. Contact us to discuss timing, or explore more financing strategies in our FAQ hub.