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 Mortgage Company Changing the way the Riviera Maya Real Estate Market does Business.
Platinum Capital International has entered the Cancun / Riviera Maya mortgage market. Mr. Robert Sapia, the local representative, is now leading the way to increase the company's exposure and expand it's services in the marketplace. Mr. Sapia comes from the Florida USA market where he worked in the real estate industry. "We have come to the Riviera Maya because we believe that the prospects for adding value to the market are enormous" says Mr. Sapia.
Platinum is the leading mortgage provider for Americans who wish to purchase in Mexico. They have innovative products, the latest technologies, and personalized service as the cornerstones of their entry in the market
For U.S. Dollar loans, they offer 20% down, 80% loan to value financing. This product is for U.S. citizens who are purchasing their second home in Mexico.
They require a credit Score of 660-680 (650 or higher will be considered on a case by case basis.)
The income documentation requires 1 month paystubs, 2 years W-2's 2 and 2 years of tax returns. If one is self-employed, then a 24 month copy of bank statements for both personal and business will suffice.
They also have announced that Stated Documentation Loans will be coming soon. Stated documents loans mean that the buyer will be asked to "state" his or her income and the loan underwriters will simply match that to their credit reports. In other words, the documents presented to the lender will be very minimal.
Currently the loans on offer are 20 year amortizations with 30 year loans coming soon. "The market is challenging because it's so new and adjustments are being made quickly to meet the market demands" say Sapia.
In general, Sapia says that that they offer fixed or adjustable loans for 3, 5, 10, or 20 year periods. Closing costs generally run between 6 to 8% of the loan amount. They do offer cash out refinance loans up to 75% of purchase price or appraised value which ever is lower with rates starting at 8%
With a Mexican Peso Loan, Sapia says that they do offer 20% down with 80% loan to value. Financing for Mexican Nationals, US citizens and Canadians is availble whereby foreigners must have a FM3 or FM2 migatory status prior to closing. Obviously Mexican Nationals do not require any such documentation.
The term of the peso loan is a 20 year amortization with an adjustable rate of 9.9% that is fixed for 5 years
The credit score is NOT required however, their can be no derogatory credit on the report. There are NO loan origination fees.
HOME ACQUISITION PROCESS
The Fideicomiso - In spite of what you may have heard, foreignors can own property in Mexico. However, in accordance with Mexican law, foreigners can not acquire direct ownership of residential property 60 miles from the border and 30 miles from the coastline. This area is known as the restricted zone.
In the restricted zone, however, banks can act as trustees for foreignors interested in purchasing real estate. The trust is known as the Fedeicomiso. It works essentially like a trust in the US. The trust has legal ownership of the property and you own the trust. There is an initial fee to set up your trust and an annual maintainence fee. Generally, the fee to set up this trust is about $550 and annual maintainence fees are about the same.
The seller must cancel the existing trust. Your loan will move quickly, the transfer of title may not. Don't wait until the last minute! To ensure that your transaction is not held up, make sure that the seller has applied to cancel their existing trust.
Title insurance is not required in Mexico, but it is highly recommended, especially for properties not located in larger developments. We work with and recommend Stewart Title. We work very closely with developers and can help you get a discount on title services as well.
"Always record the real purchase price of your home. Don't let anyone try to talk you into recording the sale for less than the amount you agree to pay. This has been a common practice in Mexico but will cost you thousands of dollars in capital gains taxes when you decide to sell. We are happy to explain how the process works...please ask" says Sapia
"If you're buying in Mexico and want to finance it...TALK TO US FIRST! It is extremely important to coordinate your financing at the beginning of the transaction in order to protect your deposit! In addition to important verbiage in the contract, you will also want to set up a loan contingency. This gives you time, usually 21 days, to make sure that your finances are in order and to make sure that you qualify for the loan you want. Of course, contacting us first to get pre-approved for your loan is even better because it gives you the same negotiating power as a cash buyer!" says Sapia
Sapia says you can simply apply online on their web site at www.wefundmexico.com
Oh, they do also offer commercial financing from 2 million to 200 million U.S. Dollars so if you are a developer or big project manager, you might also want to contact them.
Mr. Robert Sapia can be reached at
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