Financing your dream property

It is possible to finance your property in Baja with various American Financial Institutions.

In markets that have been traditionally "cash only", significant progress has been made in recent years, with local lenders, mortgage brokers and US-based financial institutions creating a more "US -style" process, including standard loan documents and procedures familiar to the US customer purchasing second homes abroad.

Baja Smart Real Estate can help you create a bridge between the lender and you - the customer - facilitating your ability to obtain financing for your real estate transaction.
There are over 150 different loan programs with some of the basics of each outlined below.

Residential purchase / Cash out refinance
30yr loans starting at 8.00%
25yr loans starting at 7.25%
20yr loans starting at 6.875%
15yr loans starting at 6.625%
10yr loans starting at 6.5%

Construction
Lending at 70% loan to cost utilizing the land as collateral. Rates at 9% Interest only with approved builders. Construction to permanent loan with a 1 time close and no max loan amount.

Cash out refinance
Clients can now cash out 70% of appraised value.
15/20/25/30 yr adjustable and fixed rate loans with rates from 7% with 45 day closes.

Raw Land Financing
Available to US and Canadian citizens
30% down
10yr note with rates from 7.5%

If you want more information on financing Please contact us for a prequalification and consultation and will be happy to advise you on which loan program best fits your needs and to effortlessly guide you though the Mexico purchase process.

Owning Property in Mexico

Owning real estate in Baja and Mexico is a reality. Over a million Americans and Canadians enjoy their properties already. To be one of the fortunate owners of this beautiful land, there are important statutes in place foreign citizens must be aware of before investing.

Foreign citizens cannot technically "own" land within 60 miles from any Mexican border or within 30 miles of any Mexican coastline. However, there are procedures in place that allow citizens from all over the world to essentially own real estate in Mexico.

Having the experience of selling and closing over 100 properties to foreigners in Mexico, Baja Smart Real Estate is highly qualified to help you find your dream property in Baja. We can help you become another happy owner, below there is an explanation on how to own property in Mexico trough a Mexican Property Trust (Fideicomiso)

Mexican Property Trusts (Fideicomiso)
Foreign citizens who wish to buy property within designated regions of Mexico are required to obtain a "Fideicomiso," which functions as a Mexican Property Trust.

In 1994, when the USA, Canada and Mexico signed the NAFTA agreement (North American Free Trade Agreement) there was an amendments to the Constitution permitting foreigners to purchase and own real estate in Mexico located within the "restricted zone" which is all land within 60 miles of a national border and within 30 miles of the Mexican Coast. This Law permitted ownership through a land trust or "Fideicomiso", and allowed for foreign investment needed in the region.

A "Fideicomiso" is a Mexican Trust. The way it works is the Mexican Government issues a permit to an international Financial Institution of your choice, allowing the institution to act as purchaser for the property. The institution or bank acts as the "Trustee" for the Trust and you are the "Beneficiary" of the Trust. The "Beneficiary" rights are very similar to Living Wills or Estate Trusts in the U.S.

The law authorizes Mexican banking institutions to act as trustees. A trustee takes instructions only from the beneficiary of the trust (the foreign purchaser). The beneficiary has the right to use, occupy and possess the property, including the right to improve it. The beneficiary may also sell the rights and instruct the trustee to transfer title to a qualified owner.

Before 1994 foreigners were doing lease agreements to enjoy the land. There are people that still think this is the way to have your dream home close to Mexico’s warm beaches... this has changed. The property that you buy will be put into a trust with you named as the beneficiary of the trust giving you the rights that an owner of property in the U.S. or Canada has, including the right to own the property, sell the property, rent the property, improve the property, and more.

The initial term of the trust is 50 years and it can be renewed for an additional period of 50 years within the last year of each 50-year period. This process can be continued indefinitely, providing for long term control of the asset.

About Baja Sur

Baja California Sur is the least populated State in Mexico and known around the globe for its natural beauty, perfect weather and magical places. Baja is a place for adventure where outdoor activities such as surfing, hiking, fishing, golfing and many more are always a possibility. Baja Sur is made up of the popular tourist destinations of San Jose del Cabo, Cabo San Lucas, La Paz, Todos Santos and the East Cape. Baja California Sur become a Mexican state in 1974, and incorporates several offshore islands. The state capitol is La Paz.

About Baja Smart.

Baja Smart’s approach to Real Estate is to show, educate, and provide the necessary information to make a SMART and secure choice when buying Real Estate in Baja. SMART information leads to wealth, health, and a better quality of life! Take advantage of the beautiful opportunities this land has to offer! Visit us and see the benefits of buying BAJA SMART! William Scott broker and owner of Baja Smart has sold over 100 homes to Americans and Canadians in Baja. He has an excelent reputation in the area and has worked with well known institutions such as Stewart Title G/E Money, Scotia Bank and brokerage firms such as Century 21st, Coldwell Banker, Prudential and many more. Real estate is not just a business it´s his lifestyle.