Cross Border Investment (CBI)

Understanding Mexican Mortgages for American and Canadian Citizens

As a real estate agent in Tulum, I often receive inquiries about financing options for purchasing property in Mexico. One of the companies recently mentioned in this context is Cross Border Investment (CBI). This blog provides an overview of CBI and its mortgage services for those interested in investing in Mexican real estate.

About Cross Border Investment (CBI)

CBI was established in 2011 and has since become a prominent provider in the Mexican mortgage and real estate market. The company is based in Puerto Vallarta and operates across Mexico, including areas like Los Cabos, Playa del Carmen, Cancun, San Miguel de Allende, and Mexico City. CBI handles mortgage transactions nationwide, offering a wide range of services to facilitate property purchases.

Services Provided by CBI

CBI offers a comprehensive suite of services designed to streamline the mortgage process for foreign investors. Here are the key aspects of their service:

1. Mortgage Approval Process

   • Prequalification: Prospective borrowers complete an online prequalification form.
   • Documentation Submission: Required documents include identification, income documentation, and a credit report. CBI provides a checklist and a secure link for uploading these documents.
   • Underwriting and Approval: The loan package is underwritten by CBI, which also collects an application fee. The package is then submitted for lender approval, typically taking about two weeks.

2. Closing Process

   • Coordination: CBI coordinates all aspects of the closing process, including Escrow, appraisal, trust, due diligence, and legal and bank procedures.
   • Deed Signing: Both the buyer and seller sign the deed.
   • Funds Disbursement: After the deed is signed, the lender deposits funds into the Escrow account. The closing process generally takes around two months from the time the appraisal is received.

Mortgage Conditions for USA and Canada Citizens

CBI's mortgage options are available to citizens of the USA and Canada, with no requirement for Mexican residency. The primary conditions for these mortgages are as follows:

• Loan-to-Value (LTV): Up to 85% of the property's value
• Term: Up to 30 years
• Interest Rate: Starting at 7.5%
• Insurance: Property insurance is mandatory, with premiums included in the monthly mortgage payment. Some loans may also require title and life insurance.
• Income Documentation: Acceptable documents include tax returns, paystubs, bank statements, and asset statements from the US or Canada.
• Minimum Credit Score: 680
• Minimum Loan Amount: $100,000 USD
• Approval Time: The mortgage approval process adds about two weeks to the typical time frame for a cash purchase.

How to Get Started with CBI

The process to obtain a mortgage through CBI involves two main phases: loan approval and closing. Here are the steps:

1. Loan Approval Process

   • Complete the online prequalification form.
   • Submit identification, income documentation, and a credit report.
   • CBI underwrites the loan package and collects the application fee.
   • The loan package is submitted for lender approval, which takes approximately two weeks.

2. Closing Process

   • CBI coordinates all aspects of closing.
   • Both parties sign the deed.
   • The lender deposits funds into the Escrow account after the deed is signed. The closing process takes about two months after the appraisal is received.

To begin the prequalification process, visit CBI's prequalification page.

Conclusion

For Canadian citizens interested in purchasing property in Mexico, CBI provides a range of mortgage services to facilitate the process. Understanding the conditions and procedures involved can help streamline your real estate investment journey.

If you have further questions or need assistance, feel free to reach out. This overview aims to provide clarity on how CBI can assist with Mexican home loans.