US Mortgage for Mexicans: Full Guide

Are you interested in getting a US mortgage for Mexican citizens? If the answer is yes, you should know that you’re not alone. Tens of thousands of Mexicans purchase properties in the US each year. 

The statistics about foreign investment in US real estate show that 11% of all foreign real estate buyers between April 2022 and March 2023 are from Mexico. Collectively, Mexicans have spent more than $4,2 billion, with a lot of their financing coming directly from lenders who offer US Mortgages for Mexicans. With so much money on the line, the main question becomes — how are Mexicans getting mortgage in USA? To find out, keep reading this article.

Can Mexican Get Mortgage in USA?

Yes, Mexican citizens can get a US mortgage. However, we have to mention that not every lender will want to work with Mexicans or other foreigners due to various reasons. Because of that, contacting a mortgage broker with experience dealing with international clients is the best way to get a loan in the US. Mortgage brokers know how to connect their clients with lenders that offer loans to foreigners and can help you qualify for a mortgage, even without a US credit score, history, or Green card. 

Now, let’s take a brief look at the main differences between US and Mexican property loans before we share with you the key steps to getting mortgage in US as an Mexican.

3 Main Differences Between US and Mexican Mortgages

The main difference between US and Mexican mortgages include:

1. Ownership of the Property

In the US, when you finance a property through a mortgage, you become the owner as soon you pay the closing costs and sign the appropriate documents, while the bank gets a lien on the property. This means that you’re free to do anything you want with the house (e.g. sell it, rent it, renovate it, etc.) as long as you keep making the loan payments. 

On the other hand, in Mexico, the bank (i.e., the lender) owns the property until the loan is fully paid off. 

2. Loan Term Length and Amortization

In the US, a typical loan term is between 15 and 30 years. In Mexico, mortgage terms between 10 and 20 years are more common. Most mortgages in Mexico are “amortization loans, ” meaning that every loan payment includes both the interest and principal. On the other hand, in the US, there is more flexibility in how loans are structured. There, you can find mortgages that are typical “amortization loans” but can also find interest-only loans. 

3. Down Payment and Interest Rates 

A typical down payment for a mortgage in the US can range between 15% to 25%, depending on the exact loan type. In Mexico, down payments are between 10% and 25% but can go as high as 50%. 

Interest rates in Mexico are much higher than in the US, ranging from 8% to 14% for long-term mortgages. In the US, interest rates for 15-25 year mortgages are usually between 7% and 9% (October 2024). Short-term mortgages (between 6 months and 2 years) have interest rates that are usually over 10%.    

US Mortgage for Mexicans: 5 Key Steps 

Getting mortgage in USA as a Mexican is not as straightforward of a process. It will be different for everybody, making it almost impossible to give you a clear step-by-step guide on it. Now, with that being said, some aspects and certain key steps will more than likely be the same for everyone. For Mexicans getting mortgage in USA, those key steps are:

1. Determine Your Purchasing Reason

Before you start looking for a US mortgage for Mexican citizens, first, you need to determine your purchasing reason. It’s important to do that because the reason for the purchase is directly connected to the type of loan that will suit you. 

The US financial market is highly developed, and there are as many loan types as there are purchasing reasons. By figuring out why you want to buy a property in the US as a Mexican, you’ll more easily determine which loan type will be right for you.

2. Figure Out Your Finances

Another important step to getting a US mortgage as a Mexican is knowing how much money and other assets you have. This will help you figure out how much money you have for a down payment, which will further allow you to determine the price range of properties you should be looking at. Also, make sure to prepare any documentation about your financial assets (other real estate properties, business, bank statements, etc.), as they can help streamline the loan process for a US mortgage for Mexicans.

3. Pick a State 

Rules and regulations about buying property in the US are different for each state. Some states have laws that favor real estate investors, while other don’t. For example, Florida is a landlord-friendly state with laws that protect owners’ rights. On the other hand, California has some of the most tenant-friendly regulations that protect the rights of renters, but significantly hinder investors. That’s why, before you put your money on the line, you need to learn how to choose the best location for a rental property in the US.

However, if you don’t want to buy investment properties but instead buy a primary residence, picking the right US state will probably not depend on specific state laws or investment opportunities. It will have more to do with your situation, like where your job is located or where your family lives. 

4. Prepare Documentation

Having the right documentation ready in advance can make the entire process of getting mortgage in USA as an Mexican much easier. Now, the exact documents you’ll need can depend on:

• The loan you’re applying for
• Any US identification documents you have (e.g., Green Card or US Visa for Mexicans, etc.)
• The specif lender 

Getting mortgage in USA as an Mexican can be done without a US credit score, Green Card, or Visa. And to do that, you’ll most likely need the following documentation:

• Proof of Income — tax returns or various financial statements
• Proof of Assets —  proof of any assets you hold and enough money for a down payment
• Proof of Identification — Mexican passport or national ID; US visa or proof of your residency status 
• SSN or ITIN — having any of these two numbers and paperwork to show it can help you with getting US mortgage for Mexicans

5. Contact a Mortgage Broker

Finding a US mortgage for Mexicans that best suits your needs is difficult, especially if you have no experience. But don’t worry — you’re not alone. A lot of people don’t have it, which is why they turn to mortgage brokers for help. In fact, even those with experience tend to contact brokers before applying for a loan. Why is that? Mortgage brokers are specialized in finding loan deals for their clients. Their only job is to connect you, the client, with the right lender and make sure you get the best possible deal.

And, in your situation, as someone looking for a US mortgage for Mexican citizens, your best option would be to contact a mortgage brokerage company specializing in dealing with international clients. There are many things to know about buying and financing US property as a non-citizen. A broker with international experience can save you a lot of time and money.

Are you looking for US mortgage for Mexican nationals? Schedule a free 30-minute consultation with NRI’s mortgage expert to learn how we can help you.

Most Popular US Mortgages for Mexican Citizens

As we’ve talked about above, there are a lot of US mortgages for Mexicans. Here’s a list of some of the most popular ones:

US Mortgage for Mexicans: Foreign National Mortgage Loans

Foreign national mortgage loans help Mexican citizens (and other foreigners) buy property in the US. What makes these types of loans special is that you don’t need to have a US credit score or Green card to obtain one, which is precisely why they are so popular with foreign nationals. 

The usual down payment for this type of US mortgage for Mexicans is around 25% to 30%. They are very versatile, and you can use them to finance various properties, such as:

• Main residences or second homes
• Commercial or residential rentals 
• Vacation houses 

Mexicans Getting Mortgage in USA: DSCR Loans for Foreigners

The main reason behind the huge popularity of DSCR loans for foreigners is that they allow you to qualify based on the rental income of a property, unlike other loans that focus more on the borrower’s personal finances. 

To determine whether a property can qualify or not, DSCR loan lenders first calculate the DSCR score. If the DSCR score is higher than 1, a property can generate enough cash to cover the loan payments. The higher the score is, the better rates and overall deal terms you can expect to get.

DSCR loans for foreigners are investor-only loans, meaning they can only be used for purchasing rental properties (either residential or commercial). The down payment for DSCR loans is usually between 25% and 30%, and the loan has a limit of 2 million dollars that can be used to purchase multiple properties. And, You don’t need a US credit score or Green Card to apply for a DSCR loan.

The interest rates for DSCR loans are between 7% and 9% (October 2024) and are influenced by different factors, such as:

• Exact lender
• Property value
• Loan amount 
• DSCR score
• Loan term length
• US credit score

US Mortgage for Mexicans: ITIN Loans

ITIN mortgage loans are mainly for Mexicans who live in the US and want to buy a main residence but can not get a Green Card or a Social Security Number for one reason or another. To apply for an ITIN mortgage, you must have an individual taxpayer identification number and have at least two years of tax returns (not always necessary). The usual down payment for ITIN mortgage loans is between 15% and 25%. 

Mexicans Getting Mortgage in USA: Fix and Flip Loans 

Fix-and-flip loans are investor-only mortgages. You can use them to finance properties that need renovation, fix them up, and flip them for profit. These are short-term loans with loan lengths usually between 6 months and 2 years. They have higher interest rates than regular loans, at around 10% or higher. 

Fix-and-flip loans are usually interest-only loans, meaning that for your monthly loan payments, you’ll only be paying interest and will not build equity in the property. You can pay off the principal only when the property is sold or refinanced. The down payment is generally between 25% and 30%.