How Can Mexicans Buy House in the USA: The Ultimate Guide
Are you a Mexican Buying House in USA? With around 37,4 million Mexicans and people of Mexican descent already living in the US, it’s impossible to deny their great and positive impact on American culture and economy (and, of course, cuisine). Each year, around 120,000 people from Mexico move to the US permanently to pursue that elusive American Dream. But moving to another country is not easy, and it comes with its own set of problems. And one of the biggest problems any Mexican newcomer to the States faces is figuring out their housing situation. And that is precisely what we aim to tackle in this article.
We’ll discuss everything you should know about buying US real estate as a Mexican citizen. We’ll answer some of the most pressing questions, share the main reasons Mexicans buy houses in the USA, and tell you all about different financing options that you can get as a Mexican, even without a US credit score or Green Card.
Let’s start.
Can Mexicans Buy US Real Estate?
The answer is simple — yes, they can! In fact, Mexican nationals have been some of the most prolific buyers of US real estate. According to the latest statistics about foreign investment in US real estate, Mexicans have collectively spent more than 50 billion dollars on US properties during the past decade or so.
In 2023 alone, Mexican citizens invested around $4,2 billion in US real estate. Most properties (around 65%) were financed with various US mortgage loans available to foreign nationals, while others were bought with direct cash purchases. And, no, you didn’t read that wrong — the majority of US properties bought by Mexican nationals are financed through US mortgages for Mexican citizens that don’t require a US credit score or a Green Card.
We’ll talk about different mortgage options available to Mexicans later in the article, but for now, let’s briefly discuss where exactly in the US the majority of Mexican nationals buy real estate.
Where in the US do Mexicans Buy Property?
By far, the most popular destination for Mexicans buying US real estate is the state of Texas. Between April 2022 and May 2023, around 50% of all Mexican buyers purchased their properties in that great state. Other popular states for Mexican nationals buying US real estate are:
- California
- Ohio
- Arizona
- Florida
- Illinois
- Wisconsin
Why Do Mexicans Buy US Real Estate?
There are plenty of different reasons why Mexicans want to buy US real estate, and most of them fall into the following categories:
Buying A Primary Residence
According to the latest information, about 37 million people of Mexican descent live in the US. This number keeps rising, in no small part, due to people moving from Mexico to US (around 120,000 per year). What do a lot of those people want to do? They want to buy a house for their family and secure their future. And, because of how the US financial system works, they don’t need to have a Green Card or a Visa to purchase property in the US.
Buying an Investment Property
Many Mexicans buy US real estate for investment purposes. The main idea is to buy a house (or an apartment), turn it into a residential rental property, and use it to generate passive income. And why choose the US over Mexico? Simply put, the numbers are much better, and you can charge at least three times more for rent in the US than you can in Mexico.
Most real estate investors open an LLC in the US and purchase their rentals trough it. This allows them to lower their tax bill by a significant amount, protect their personal assets, and make it easier to do business in the States.
Buying a Vacation Property
Mexico is known for its warm climate and amazing tourist destinations, but the same can be said for certain states in the US. That’s why a good deal of Mexican buyers purchase US properties and use them as vacation homes (10% according to the latest data).
Investing in US Dollar
Another reason Mexicans buy US real estate (which doesn’t neatly fit into the above categories) is because by buying US property, they’re essentially investing in the US dollar. For some time now, the Mexican peso hasn’t been the most stable currency in the world. That’s why many Mexican nationals with the means or know-how buy US property as a way to safeguard their money from the instability of the peso.
Mexican Communities in the US
Most Mexicans and those of Mexican origin chose to live in California (around 34% of all Mexicans in the US) or Texas (around 26% of all Mexicans in the US). These two states have historically been the most popular with the Mexican population and continue to do so.
Top US counties with the most robust and most developed Mexican communities include:
- Los Angeles County ( around 3,5 million people of Mexican origin)
- Harris County (around 2,9 million people of Mexican origin)
- Cook County (around 600,000 people of Mexican origin)
- Dallas County (around 700,000 people of Mexican origin)
Mexican Buying House in USA: Financing Options
We mentioned above that Mexicans can get a US mortgage loan without a US credit history, green card, or citizenship. You might be asking now, how is that possible? The answer is pretty simple: it’s non-qualified mortgages.
The main goal behind non-qualified mortgages (or non-QM loans) is to help people with diverse financial backgrounds (including those without US credit scores) get financing in the US. Unlike qualified mortgages (usually offered by banks), non-QM loans have less strict acceptance criteria. This is precisely what allows people from all over the world and without US credit scores (including Mexican citizens) to apply for and get a mortgage loan in the US.
Now, before we move on to mortgage loans for Mexicans buying a house in the USA, we feel obligated to clear up one of the most common misconceptions about buying US property — purchasing US property doesn’t automatically get you a Green Card. However, it can make you seem like a more viable candidate and make the process easier. But that’s it. You won’t get an automatic Visa or a Green Card if you buy a house in the US.
With that out of the way, here are the three most popular types of non-QM loans for Mexican citizens buying a house in the USA:
Buy US Real Estate From Mexico: Foreign National Mortage Loans
One of the most popular types of non-QM loans for Mexican nationals is the so-called Foreign National Mortgage Loan. This type of house loan is designed to help those without a US credit score or history obtain financing for a US property and can be used to purchase primary residences, vacation homes, and short or long-term rentals.
The main requirements for a foreign national mortgage loan include the following:
- A valid US Visa (From different types of work visas to a regular travel visa. Most of them will allow you to qualify for this type of loan);
- A valid passport and a copy of it
- Payslips or W-2 forms (if you’ve worked in the US or are currently working there)
- Individual Tax Identification Number or ITIN
- Downpayment of around 20-25% (the exact percentage will depend on the lender)
Buy US Real Estate From Mexico: ITIN Mortage Loans
ITIN mortgage loans are designed to help nonresidents (mainly those who can’t get a social security number in the US) purchase a house in the country. The first and main requirement for getting an ITIN mortgage loan is having your own ITIN number and ITIN card.
For a fixed fee of $400, NRI can help you get a US ITIN number and card. Book a call or contact us to find out more.
Other requirements (apart from the valid ITIN card) for this type of loan include the following:
- Different identification documents (passport, ID, driver’s license, etc.)
- US credit score of at least 600 (not always required but can help you get a better deal overall)
- Proof of employment for the past two years (if you’re living in the US)
- Two years of US tax returns
- A downpayment of around 20-25% of the property’s value
ITIN mortgage loans mainly aim to help resident aliens finance their primary residences and put down permanent roots in the US. Some lenders will approve an ITIN mortgage loan for an investment property, but that’s not the intended purpose of these loans.
Now, if you’re an investor from Mexico looking to buy rental properties in the US, the next type of mortgage loan we’ll mention is your best bet for obtaining financing.
Buy US Real Estate From Mexico: DSCR Loans
DSCR loans are investor-only mortgages that aim to help foreign and domestic inventors finance rental properties in the US. The lenders of these types of loans use a special metric called DSCR or debt-to-service ratio. Check out our article on calculating DSCR if you want to learn more. But for now, all you need to know is that this DSCR metric shows lenders how much money a specific property can generate (usually per year, but it can be calculated monthly).
For example, a DSCR score of 1 means a property can generate enough income to cover loan payments, and so on. The higher the DSCR score is, the better deal you’ll be able to get on the loan.
The main requirements for a DSCR loan include:
- DSCR score of 1
- Downpayment of around 20-25%
- A credit score of 620 or higher (for most lenders, but there are some that will work with you even if you don’t have a US credit score)
- Enough cash reserves to cover between 6-12 monthly loan payments (this will depend on the lender)
Mortgages
Mortgages
And Tax Filings
Agents
