PUERTO VALLARTA REAL ESTATE FINANCING AVAILABLE, 20% DOWNPAYMENT!

If you can meet basic underwriting guidelines, financing Puerto Vallarta Real Estate is readily available. With the turmoil currently being experienced in the US Real Estate market, this is great news!  Although rates and fees are slightly higher than in the US, you can now take out a loan against your Puerto Vallarta property, rather than tie up valuable home equity in the US.  Mortgage financing in Mexico extends the possibility of a second home in paradise to many who could not otherwise afford it.  There have been some major changes to the global economy, and we have definitely felt the effects in Vallarta. Although there has been some tightening in the lending industry in Mexico, there are still many options available, both in pesos or dollars. 

Savvy investors understand the benefits of leverage (using the “other guy’s” money instead of their own) which decreases the necessary cash investment and increases the yield on their invested cash. Here are some basic guidelines to consider when applying of a mortgage on your property in Puerto Vallarta.   Who can apply for loans?  Currently, there are programs for Canadians, US Citizens, Mexican Nationals and foreigners who earn income in Mexico.  What types of loans are available?  There are purchase, permanent loans for pre-sale condos at time of transfer of title, cash-out refinance, lot loans (in gated communities only) and construction loans for single family residences.  There are also ARMS, Balloons and fixed rates available.  What is the amortization period?  Up to 30 years.  What are the current interest rates? 11.5% - 13.5%   How much is the minimum down payment required?  20% - 35% depending on borrow qualification.  What are the loan terms?  15-30 years.  What are the qualifications?  The borrower must be in the same line of work for a minimum of 2 years and provide 2 years of tax returns, the last 2 years W-2’s and last 2 months pay stubs and bank statements. The borrower must not have foreclosures or bankruptcies in the past 5 years. What is the minimum FICO credit score?  650 or above.  What is the maximum debt-to-income (DTI)?  The borrower cannot spend more than 40% of their monthly income on mortgages, credit cards, car payments + the proposed mortgage.

What is the average closing time?  60-90 days. There is NO FEE for pre-qualification unless a credit report is pulled with your permission. There are several well-established loan brokers in the Puerto Vallarta market; ask your friendly and knowledgeable PV Insider to recommend someone.

Required Fields
Term In Years:     
Interest Rate:      %
Cost of Home:  $
Down Payment:  $  
Annual Insurance:  $  
Estimate Insurance to 0.43% of Cost
Annual Property Tax:  $  
Estimate Tax to 1.2% of Cost
Monthly Income:  $
Monthly Debt:  $
Optional Fields
Gross Debt Service Ratio (GDS):     
Total Debt Service Ratio (TDS):     
Condos Fees:  $
Results
  Receive this Detailed Analysis

Your Monthly Payments
 
Loan Amount:
Loan Insurance (%):
Total Loan (Mortgage) Amount:
 
Principal & Interest:
Homeowners Insurance:
Property Taxes:
Condo Fees:
Monthly Loan Insurance (%):
Total Monthly Payment:
Income Needed to Qualify for the Mortgage
Total Monthly Loan Payment:
Total Monthly Debt Payment:
Monthly Loan Insurance (%):
Qualifying Income of % GDS Ratio:
Qualifying Income of % TDS Ratio:
What You Can Afford
We are using the % ratio.
Cost of House:
Down Payment:
Loan Value:
Monthly Principal & Interest:
Monthly Insurance:
Monthly Property Tax:
Monthly Condo Fees:
 
Cost of House = [(Monthly income x Debt Ratio) – monthly tax – monthly insurance – condo fee] /
(monthly interest rate/ function of interest rate)
Renting
Monthly Rent: $
Annual Rental Increases:  %
Monthly Renter Insurance: $
Savings or Investment Rate:  %
 
Owning
Planned # of years in home: 
Yearly appreciation of the home:  %
Annual home maintenance:  %