MEXLEND: financing options in Puerto Vallarta

I have many clients that are curious about finiancing options here in Puerto Vallarta. Although the vast majority of our sales are paid in cash, there are other options available. One is pre-construction financing with a developer, and the 2nd is MexLend, a local lender that our clients use and enjoy. I wanted to share some updated information on their plans. I hope you find it helpful.

MexLend has a variety of loan options available for your purchase.   I have to warn you, though, costs can be higher down here than what folks are accustomed. Although, Option 3 below (highlighted) is relatively attractive by MX Lending Standards.  Here is a brief description of what’s available today and what it takes to qualify.

  1. Peso Loans through our Mexican Banks.

    They represent all 8 major banks here in MX.

Minimum Down Payment:  10% to 20%

Interest Rates – Initial Purchase:  10% to 13%

Interest Rates – Cash Outs and Refi:  10.5% to 16%


Here’s the catch: you must have your Immigration Card AND income derived in Mexico AND a MX Bank Account with at least 3 to 6 months of seasoned deposits (the longer the better) in an amount roughly 2.5X the proposed monthly mortgage. Also, you need to establish 2 open lines of credit in Mexico.  This is most easily accomplished by getting a Secured Card through your Primary Mexican Bank and applying for a Department Store Card at Liverpool, Costco, Home Depot, etc.   So if you do not have these three things already – it will be at least 6 to 9 months before you would be seasoned well enough to submit a file to the bank and then another 2 months to close; basically about 1 year in total before you would be able to close on a property.


  1. Private Money Mortgages in US Dollars.

    When the US Banks (GEMoney, IMI, Compass, etc) pulled out of the Mexican market in 2012, Mexlend put their noses to the grindstone and assembled several sources for Private Money Lending. These loan programs are lo doc, exclusive to Mexlend and are granted largely on the value/caliber of the property being financed.  Also, they can use income, residency and credit history from your home country. You must put at least 35% down and we can usually close in about 4 weeks. Here’s the catch:  Interest Rates are between 9.5% and 16%.


  1. Personal Loans through a Private Investment Club. 

    This is not a mortgage per say, but rather a secured loan through an investor’s club.  These loans require at least 30% down and have 7 to 15 year terms.  Interest rates are 0% – but the lender makes its money through admin fees – which translate to an effective rate of between 2% and 4%.   These loans are in Pesos.


  1. Our “Mejor Oferta” program

    Specifically designed for Mexican Nationals or dual Nationals who reside AND earn an income in the US but wish to purchase property in Mexico.  Down payment requirements are typically 10% to 20% for a 20 year mortgage with interest rates at about 10%.


***Interest Paid in Mexico is often tax deductible in the US and Canada.  You need to check with your tax advisor on how best to structure such a deduction.


***Many buyers use Option 2 above as an “in” to the property and once closed, immediately begin to lay the ground work to refinance at better rates and terms through Option 1

Options 2 and 3 above are what most vacation/investments buyers use.  Options 1 and 4 require a bit more of a commitment to and within Mexico.  Hope this helps and let me know if you have further questions.

Have you heard of MexLend? Are you in need of financing? Please send me a message! -John

Looking for your dream home in Puerto Vallarta, Mexico? Visit my website to get started!



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