Already on ArticleSlash?

Forgot your password? Sign Up

Playa del Carmen Villa with a Mexico Mortgage – Pros and Cons

Thomas Lloyd

Visitors: 196

For many people, owning a comfortable property near the beachfront, like a Playa del Carmen villa, near the beachfront is a dream come true. The good news is that this dream is more accessible through mortgages available directly from banks in Mexico. A number of villa developments in Playa del Carmen have made arrangements to make this process more direct and easy. In addition to the normal pros and cons of a mortgage, the following are some pros and cons specific to getting mortgage directly in Mexico.


1. Financing available directly in Mexico

The fact that you as a buyer can finance your property directly in Mexico means that you don't have to tie up home equity on a property you own in your home country. The villa itself will be used as the “collateral" for your mortgage, and your other property will not be involved in the process (except as demonstration to qualify for the credit requirements. )

2. International Banks Available

Besides the fact that most banks in Mexico are now owned by foreign companies such as Scotiabank from Canada, banking in Mexico has modernized drastically, offering high security for transactions through these institutions.

3. Pre-Arranged Qualification

A number of the villas that are promoting mortgage purchases are usually pre-qualified, meaning that the process of reviewing and approving the property is already done. This saves the frustration of spending time in the process only to realize that the property does not meet regulations, which are still significantly tighter in Mexico than in the U. S. In some cases, much of the process is pre-arranged, meaning that the documents are delivered to a representative with the developer, who carries out the mortgage qualification process.

4. Begin enjoyment of your Playa del Carmen villa with only 30%

As is always a benefit of buying through a mortgage, you can begin enjoyment of your new villa with the down payment and credit approval. One top development is selling villas just over $200,000 USD, and requires a down payment of 60%.


1. Higher down payment and interest

While it is still a benefit to begin enjoying your property with a smaller initial payment, higher down payments are a part of the stricter regulations in Mexico. Since interest rates in the U. S. are rock bottom (in attempt to revitalize the housing market) Mexico's rates are slightly higher.

2. Longer paperwork and approval processes

Even with the pre-qualification of your villa, the process will probably be more complicated that what you're used to. If the developer is managing the application process, it will just be a question of waiting longer.

3. Higher FICO scores required

In addition to higher down payments and tighter property restrictions, there are also higher credit score requirements.

In the end, the advantage of having home equity free on other properties usually outweighs the “cons" for most buyers, but in consideration of this list, you can choose for yourself it if it's appropriate for you to buy your villa through a mortgage in Mexico.; Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely

Playa del Carmen villa


Article Source:

Rate this Article: 
Mexico Homes - Cancun vs. Playa del Carmen
Rated 4 / 5
based on 5 votes

Related Articles:

Buying a Playa del Carmen Villa – Factors to Consider

by: Thomas Lloyd (September 21, 2010) 
(Real Estate)

El Cielo; Playa del Carmen Villa vs. Condos

by: Thomas Lloyd (November 23, 2010) 
(Real Estate)

A Playa del Carmen Villa Near the Beach – Your Dream Home

by: Thomas Lloyd (November 30, 2010) 
(Real Estate)

Playa del Carmen Home – Villa in Golf Community, Next to Downtown

by: Thomas Lloyd (August 30, 2010) 
(Real Estate)

Life in a Playa del Carmen Villa – Beachfront Living, Low Cost

by: Thomas Lloyd (August 31, 2010) 
(Real Estate)

Top Mexico Homes in Playa del Carmen for less than $200,000

by: Thomas Lloyd (May 26, 2010) 
(Real Estate)

Playa Del Carmen A Famous Place in Mexico

by: David Urmann (November 10, 2008) 
(Travel and Leisure/Destination Tips)

New Guide for Mexico Condos under $150,000 in Playa del Carmen

by: Thomas Lloyd (June 08, 2010) 
(Real Estate)

Mexico Real Estate – What You Get in Playa del Carmen - $150,000

by: Thomas Lloyd (December 03, 2010) 
(Real Estate)

Mexico Homes - Cancun vs. Playa del Carmen

by: Thomas Lloyd (September 14, 2010) 
(Real Estate)