Financing a lot in Mexico: your real options

Your options at a glance

Mexico does not have the 30-year fixed mortgage market you may know from the US, and lots are even harder to finance than homes. This table compares the options that actually exist for buying land.

Terms change by development, lender and date. We send you the current terms for each lot when you request a quote.

Paying cash

Cash is the simplest route and gives you the most leverage. Several developers offer a cash discount of 5% to 10% off list price, and you can close as soon as the paperwork is ready.

If the money comes from abroad, wire it to the account the notary or the trust bank designates, never in cash. Mexican anti-money-laundering law bans paying for real estate in cash above 8,025 UMA, roughly 900,000 pesos or about 50,000 USD, and the notary must document where the funds come from. Budget for closing costs too; see our guide to closing costs for a lot in Mexico.

Developer financing

This is the most common way to buy a country club lot. The developer sells to you in installments: a down payment of 20% to 40% and the balance over 12 to 60 months. Some plans are interest-free but use a higher price than the cash price; others charge 8% to 12% a year. There is no credit check and no Mexican credit history required, which makes it a good fit if you live abroad.

You typically sign an installment purchase agreement or a promise-to-sell contract, and the deed is signed when you finish paying. That makes the contract the heart of this option. Before signing, have a Mexican attorney or the notary review these points:

• Total price and schedule: amount of each payment, due dates and currency (pesos or dollars).
• Interest and late fees: the regular rate and what you are charged for paying late typical late fee to confirm.
• Default and cancellation: what share of your payments you forfeit if you stop paying often 10% to 30% and how the rest is refunded.
• Prepayment: the right to pay off early with no penalty and with the unearned interest removed.
• Deed timing: when the deed is signed and who pays closing costs.
• Clean title: proof the developer owns the lot, that it has no liens and that it has been surveyed.
• Assignment rights: whether you can sell or assign the contract before paying it off.
• Developer default: what happens if the developer fails to deliver or deed on time.

The closing process in Mexico →

Mexican bank loans for foreigners

Some Mexican banks lend to foreigners, but almost always for a finished home or for construction, not for a vacant lot. The few land loans that exist require a large down payment of 30% to 50% and short terms. A handful of US-based lenders offer cross-border mortgages on Mexican property, but they also focus on finished homes.

Typical requirements for a foreign borrower:

• Temporary or permanent residency in Mexico some banks accept non-residents under special terms.
• Documented income, ideally earned in Mexico, with bank statements and tax returns.
• A Mexican credit bureau history or an existing relationship with the bank.
• A maximum age at loan payoff around 70 to 80 and mandatory life insurance.
• A bank appraisal and, in the restricted zone, a fideicomiso with the lending bank or one it accepts.

A common strategy is to buy the lot with cash or developer financing, then take a construction loan once you own land the bank will accept as collateral.

Borrowing at home: HELOC or refinance

Many US and Canadian buyers fund their lot with a loan secured by the home they already own. Rates are usually lower than in Mexico, the process is familiar and you show up as a cash buyer, which can help you negotiate.

• United States: a home equity line of credit (HELOC) or a cash-out refinance on your primary home.
• Canada: a HELOC or refinancing your mortgage with your bank or credit union.
• France: a personal loan, or a mortgage secured on a property in France. French banks rarely finance property abroad without local collateral.

The trade-off is that your primary home becomes the collateral, and a variable HELOC rate can rise. Factor in exchange rates as well, since you repay in dollars or euros.

Infonavit and Fovissste: for Mexican workers only

Infonavit (private sector) and Fovissste (government employees) are Mexico's housing funds for enrolled workers. A foreigner without formal employment in Mexico cannot use them.

If you are a Mexican buyer, Infonavit offers products for buying land confirm current land loan terms, and you can use your housing account balance or combine it with a bank loan (Cofinavit). Check with each developer whether they accept these loans, since not every country club lot qualifies.

Exchange rates and paying in USD or MXN

Many Riviera Maya lots are priced in pesos and some in US dollars. If you earn in US dollars, Canadian dollars or euros, a swing in the exchange rate can make your installments noticeably more or less expensive over a multi-year plan.

• Lock the currency in the contract and, if you pay in dollars, the reference exchange rate.
• Compare transfer services: specialized currency platforms often beat your bank's rate typical savings to confirm.
• The deed is in pesos. Even if the price is in dollars, the notary converts it at the official rate on the signing date.
• Keep every wire confirmation: the notary asks for them, and they matter for your tax basis when you sell. See our guide to property taxes in Mexico.

How to choose, and next step

If you have the funds, cash is usually the cheapest. If you would rather keep liquidity and you live outside Mexico, developer financing is almost always the most practical choice, as long as the contract is reviewed carefully. If this is your first purchase in Mexico, start with our guide to buying property in Mexico as a foreigner.

We will send you the current payment plans for each lot, with down payment, monthly amount and total price, so you can compare at your own pace. We work in English, Spanish and French.

See lots and payment plans →