Wish you could buy a beachfront home on the shores of Mexico, without paying all cash? Your choices just got easier. The old belief that Americans must use cash or high interest Mexican loans to buy property in Mexico is simply no longer true. Savvy baby boomers are entering the thriving real estate market, thanks to new financing avenues.

A variety of companies are breaking into this under-valued real estate market and providing US-based financing in Mexico. “We’ve worked hard to remove cross-border barriers for Americans interested in buying in Mexico… for too long, Americans interested in investing there have felt stymied by rules guiding investments to Mexican lenders. Working closely with GE Money, we’ve eliminated the problem,” says Russ Schreier, CEO of Finance North America (FNA), a leader in this new lending market in Mexico.

The breakthrough in financing options through American based companies has greater appeal than those previously available, which were either cash-based or utilized Mexican Peso-based loans and tended toward higher interest rates. Because they tied to inflation indexes, they often caused negative amortization. Potential investors dislike negative growth. And since Americans don’t mind carrying debt to finance just about every large purchase, the emergence of the new American style financing has investors raising their wine glasses (Mexican wine, of course!) in celebration.

Investors needn’t be wary of trying something new. The track record for performance looks very positive and reliable. Loans have closed in Cancún, Los Cabos, San Miguel, Loreto, Puerto Penasco, Puerto Vallarta, and Northern Baja. “Because of all of their available financing options, I was able to sell a house in Playa de Tijuana, Baja California Mexico – and everything turned out great,” acknowledges M. de Carmenifiaz, a realtor in Northern Baja.

The product range is broad with both fixed and adjustable rate loans of 20, 25 and 30 year terms having a big advantage over Mexican-peso based loans which are limited to 20 year terms. With the additional 10 years to finance, monthly payments are lower, or staying with the 20 year term simply means an earlier payoff. $100,000 to $5,000,000 financing and down payments as low as 20% gives Carmenifiaz and other realtors optimism about a broader and expanding range of American and Canadian clients finding their dream home in Mexico. Clients have also been very pleased with easy qualifying – full, alternate, and stated income documentation, just like in the U.S. For those current North American owners, refinancing allowing for cash out equity withdraws also got easier and more cost effective, with rates as low as 8% and no pre-payment penalties.

All of this means that aspiring home owners now find their dollars stretch further, so they can buy a larger, more luxurious home, save or purchase additional in-home needs in this highly undervalued market. This once fading dream of ownership in the mild climate, with surf and oceanfront lifestyle so desired in popular vacation and resort areas of the US is still available just south of the border.

Leading lender, can be found at FNA or reached by calling toll-free from the US and Canada at 866-937-4639.

For information on Baja Real Estate Guide:

Avenida Sonora 3805-10:

Fraccionamiento Chapultepec:

Tijuana, Baja California:

Lada sin costo: 1-888-592-7884

Tel (664) 971-0990:

Fax (664) 971-0991:

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