Mortgages in Mexico: A new concept!

by Susan Dearing

While the real estate market in the United States is plummeting, more and more savvy baby boomers are looking toward Mexico as a safer investment and an affordable place to retire.

The only hold-up to purchasing a property in Mexico has been financing. Up until a couple of years ago, if the purchaser didn't have cash, he could forget ever owning a home in Mexico. Now all that has changed.

According to Tom Kelly, a nationally syndicated newspaper columnist and radio talk show host, for every 10 U.S. residences, 9 have mortgages. In Mexico, for every 10 homes, only 1 has a mortgage. All that is changing. In Tom Kelly's book, "Cashing in on a Second Home in Mexico,"  he provides readers with a step-by-step plan on "How to Buy, Rent and Profit from Property South of the Border." Kelly, who has the award-winning radio show, "Real Estate Today," talks in his book about why more and more mortgage companies are leaping into lending in Mexico.

One such company, Collateral International, is a U.S. mortgage company that offers dollar-denominated loans to U.S. citizens for the purchase of vacation homes in the major resort areas of Mexico, including Manzanillo. The loans are secured by the real estate in Mexico through a trust. Offering fixed loans for 20, 15 and 10 years, cash-out refinancing, constructions loans (to buyers), and complete closing service, CI has a minimum loan amount of $175,000 USD, and provides loans of up $1,400,000 USD, with 20-40% down (based on your U.S. credit rating). Interest rate is based on down payment, credit rating and term of loan. For details, go to their web site: www.collateralinternational.com or call vice president Jorge (George) Ojeda, 205-951-4193 or 800-370-1130. E-mail Jorge at info@collateralinternational .com

Another lending institution, Wall Street Associates, offers financing for Canadians as well as U.S. citizens, and has just added Manzanillo to the list of approved areas. With a minimum loan amount of $100,000 USD, they offer 45-60-day closings on most loans. Loan amount, down payment and interest rate are subject to your credit rating. If you need less than $100,000 USD, they can also give you a loan in Mexican pesos. For more information, contact George Diamond at 720-226-0521, or e-mail him at george@wallstreetassoc.com. Wall Street Associates informative web site: www.wallstreetassoc.com makes it even easier with downloadable forms, and a list of requirements to qualify.

Not to be outdone, MortgagesInMexico.com offers U.S. dollar and peso loans to U.S. citizens. Visit their very informative web site, or contact Doug Jones at 918-398-9588 (USA) or 617-600-9675 (FAX). E-mail: doug@MortgagesInMexico.com

Manzanillo is listed as one of the top 10 places to invest in Tom Kelly's book. It is an invaluable source to anyone who is considering buying property in Mexico. To order your copy, go to www.tomkelly.com, an informative web magazine called "The Real Estate Communicator." 

Kelly has been a professional journalist for 33 years. He served The Seattle Times for 20 years, many as Real Estate Editor. Tom's weekly real estate column, now being syndicated nationally, is featured in The Los Angeles Times, St. Louis Post Dispatch, Oakland Tribune, Houston Chronicle, Rocky Mountain News, Louisville Courier, Tacoma News Tribune, Des Moines Register, Reno Gazette-Journal and dozens of other newspapers. The column typically focuses on residential mortgage and tax options for Baby Boomers and Retirees, providing consumer tips and helpful hints as well as explaining concepts and terms in a friendly, understandable style.

Tom's award-winning radio show "Real Estate Today" recently began its 13th year and is now airing in on 770 KTTH-AM, in Seattle and part of the Entercom family of stations. The show is now aired in approximately 35 US markets and is syndicated by Business Talk Radio. The program, which provides on-air advice to callers, can be heard from 11 A.M.-Noon (Pacific) Sundays live and on the Internet, and is tape-delayed by American Forces Radio to more than 450 stations in 160 countries around the world. It can be heard live on the Internet at www.businesstalkradio.net.

Another great book--especially for women who are thinking of retiring in Mexico--chronicles the adventures of nineteen women who set out on very personal pilgrimages to find, reclaim or redefine the most authentic parts of themselves by living in Mexico. Their stories will inspire you as they hurdle the traditional boundaries of the midlife woman. 

Be sure and read "Midlife Mavericks--Women reinventing their lives in Mexico," by Karen Blue. "Midlife Mavericks" highlights a new trend--unmarried American and Canadian women building better lives for themselves in Mexico. 

To learn more about Karen Blue and read about some of her Mexico experiences, go to Mexconnect.com.

The writer of this article, Susan Dearing is a 16-year resident of Manzanillo, and has several businesses there, including a PADI Dive Center, a real estate company, a boutique, designs and owns web sites including www.gomanzanillo.com, and has written a popular guidebook about Manzanillo and the state of Colima. Her book is a must read for anyone thinking about traveling or moving to Mexico, especially Manzanillo.