Can we do a cash-out refinance transaction?
Yes, we now have cash-out refinances available.
Do you offer loans where the buyers are a corporation or business entity?
We do not offer financing to business entities.
What is the Prepayment Penalty and how is it calculated?
Some programs include a three year prepayment penalty of 3% in the first year, 2% in the second year and 1% in the third year. There is NO prepayment penalty after three years.
Borrowers can also choose a 2% pre-payment buyout fee. The 3% is applied to any amount paid in addition to the regular monthly payment or the complete pay-off of the loan.
What is the cost to buy-out the Prepayment Penalty?
2% of the loan, upfront.
PITI (Principal, Interest, Taxes, Insurance), what is included in this amount and how does differ from PITI in the USA?
PITI in Mexico only includes Principal and Interest. Insurance and property taxes are not included. Usually, property taxes are an amount that is paid as a lump sum for the entire year.
Why do some of the closing charges change from loan to loan?
Many of the closing costs are in Mexican Pesos. Due to exchange rate fluctuations, the value in dollars varies as the Mexican Peso gains and loses value.
Why do we need a water bill?
The water bill is used in determining if the selling property was the primary residence of the seller or not, which then dictates whether or not the seller will have to pay capital gains taxes.
What are the minimum and maximum loan amounts?
$100,000 is the minimum. The maximum is $5 million.
Why do we need the Spanish appraisal disclosure even if we already have the English version signed?
Please remember that the transaction is taking place in Mexico and Spanish is the official language. The Spanish version of the appraisal disclosure is really what needs to be signed. The English version was created so you can understand what you are agreeing to.
Must the borrower be present at the time of closing?
No, the borrower may use a Power of Attorney and have a representative that he/she designates as a signer for the transaction. Additional steps and requirements are needed in order to use a POA.
How do I begin to create a Trust?
The Notario will write up the new trust and Contact your lender to establish it.
How do I begin to cancel a Trust?
This begins with the Realtor. He/She will contact the existing trustee bank and submit the required fees and documentation to start the cancellation.
When should the seller start his Trust cancellation?
The seller should start the trust cancellation at the time of listing the property. The trust will not be "officially" cancelled until the time of signing.
What type of escrow is opened when a buyer finds a property?
A limited escrow is opened after a purchase contract is signed to receive deposits for the Notario, Trustee and Lender.
What original documents does the seller need to provide to the Broker for the Notario?
You will need the original tax bill, water bill, Escritura, Regimen de Propiedad en Condominio with Tabla de Valores e indivios.
Why do I need two appraisals?
There are two appraisals necessary - one for value purposes (commercial) and one for tax purposes (catastro). In cases of loans over $500,000, they will need two commercial appraisals for value.
Can I use my own Appraiser?
No, at this time, we will be assigning the appraiser in the subject property’s area.
What is considered a full loan package?
A loan package is considered complete when the monies have been deposited to the limited escrow, the trust is in the process of being cancelled (if applicable), and all conditions on the checklist have been met.
Should the sales contract state when and how the seller’s Realtor is paid?
Yes, the sales contract should state when and how the selling Realtor is paid.
What does the Notario do?
The Notario is an appointed government official and a lawyer. He acts as a Title Agent would in the USA and collects/distributes government fees, as well as buyer’s and seller’s funds.
How soon can I close my loan?
This depends on the completeness of your loan package and existing trust, but generally in 45-90 days.
Is the property owned in a 99-year lease?
No, the property is owned in a trust backed by a Mexican bank for 50 years, with a 50 year renewal.
