Foreigners and Mortgages: Buying Property in Mexico
Karla & Erick | Cabo Realty | Century 21 Paradise Properties
Can Americans get a mortgage to buy in Los Cabos? Yes, but it works differently than in the U.S. In 2026, U.S. buyers have three real options: a cross-border U.S.-dollar mortgage (about 30–35% down, roughly 8.5–11.5% fixed), a Mexican bank mortgage in pesos (usually requires Mexican residency and 40–50% down), or a HELOC or cash-out refinance on your U.S. home to buy in cash. That’s why most buyers close in cash: in our review of 679 Los Cabos MLS sales, 71% closed in cash, and above $1 million it was nearly 4 out of 5. This guide compares each option for buyers from California, Texas and Arizona, with the real numbers.
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| 30–35% Down payment, cross-border USD loan |
8.5–11.5% Typical fixed rate, cross-border USD loan |
| 60–90 days Typical time to close with a loan |
71% Los Cabos MLS sales closed in cash |
| Option | Down Payment | Rate | Key Requirement |
|---|---|---|---|
| Cross-border USD mortgage | 30–35% | ~8.5–11.5% fixed, up to 30 years | U.S. income and credit (650+ minimum, 700+ for best rates) |
| Mexican bank mortgage (pesos) | 40–50% for most foreigners | ~11.5–14% fixed, up to 20 years | Mexican residency (temporary or permanent) |
| HELOC or cash-out refi on your U.S. home | You buy in cash | ~7.75–8.5% (HELOC) | Enough equity in your U.S. home |
Rates are 2026 ranges published by lenders and cross-border guides; your rate depends on credit, loan-to-value and the market at closing.
Lender guides tell you what’s possible. The MLS tells you what buyers actually did. We reviewed every Los Cabos residential sale closed between July 2025 and October 2026 where the MLS recorded how the buyer paid: 679 sales.
| 71% Paid cash |
16% Bank or mortgage loan |
13% Seller or developer financing |
The higher the price, the more buyers pay cash. Between $1 and $2 million, only 4 of 82 sales used a bank loan.
In the golf communities we focus on (Palmilla, Querencia, Cabo del Sol, Cabo Real, Club Campestre, Puerto Los Cabos, Pedregal, Quivira and Diamante), 99 sales were $1 million or more, and 76 of them were cash.
| Type | Cash | Bank Loan | Seller / Developer |
|---|---|---|---|
| Houses (431) | 78% | 14% | 8% |
| Condos (245) | 59% | 19% | 22% |
| Finished homes (535) | 77% | 13% | 10% |
| Pre-construction (139) | 47% | 25% | 27% |
Financing is far more common in condos and pre-construction, where developers offer payment plans. For a finished home in a golf community, cash is the norm.
In this data, yes. The median cash buyer closed at 92.0% of the original list price, compared with 95.3% for buyers with a bank loan. On a $1 million home, that 3-point gap is about $30,000. A cash offer closes faster and with fewer conditions, and sellers price that in. Other factors also affect each deal, so treat this as a trend, not a guarantee.
💡 Erick’s tip: If you plan to use a HELOC on your home in California, Texas or Arizona, open it before you fly down. When you find the right home, you can make a cash offer the same week, and that’s when you negotiate best.
Out of 983 Los Cabos sales in the period, 169 listings offered seller financing. When it was offered, it was usually used: 82 of the 137 sales that reported payment closed with seller financing, about 60%. It shows up most in pre-construction and in condos. In Quivira, for example, 16 of 35 sales used seller or developer financing, mostly in pre-construction.
For a full view of the market, see our Los Cabos Real Estate Market Report Q3 2026, and for what each budget buys, What Does $1 Million Buy in Los Cabos?
Specialized lenders such as Global Mortgage (MoXi) and Mexlend underwrite you with your U.S. income and credit and lend in dollars against the Mexican property.
Best for: buyers who want to keep their cash invested and are buying a finished home in an established community.
Banks like BBVA, Santander, Banorte, Scotiabank and HSBC offer mortgages, but most require Mexican residency and lend in pesos. With U.S. income, you take on exchange-rate risk, and down payments for foreigners are usually 40–50%. Most banks also cap the age at payoff at 70 to 75.
Best for: buyers who already live in Mexico, have residency and earn in pesos.
Many U.S. buyers borrow against their home in California, Texas or Arizona and then buy in Los Cabos in cash. The collateral is your U.S. home, not the Cabo property, rates are usually lower than cross-border loans, and a cash offer is stronger with sellers.
Best for: buyers with strong equity in their U.S. home.
In pre-construction, many developers let you pay in stages during construction instead of all at once. Terms vary by project, so ask for them in writing and check that your payments are protected before you sign. This is a payment plan, not a long-term mortgage: you usually need to finish paying at delivery. In the MLS data, 27% of pre-construction sales used seller or developer financing. See Developer Financing Opportunities in San José del Cabo.
Yes. The most common route is a cross-border U.S.-dollar mortgage, with about 30–35% down. Mexican banks also lend, but most require Mexican residency.
Cross-border USD loans run roughly 8.5% to 11.5% fixed. Peso loans from Mexican banks run roughly 11.5% to 14%.
About 30–35% with a cross-border lender, and usually 40–50% with a Mexican bank.
Yes. Many buyers use a HELOC or cash-out refinance on their U.S. home and buy in Los Cabos in cash.
In cash. In 679 Los Cabos MLS sales from July 2025 to October 2026, 71% closed in cash, 16% with a bank or mortgage loan and 13% with seller or developer financing. Above $1 million, 79% paid cash.
Usually. The median cash buyer closed at 92.0% of the original list price, compared with 95.3% for buyers using a bank loan.
It is offered on about 1 in 6 listings, mostly condos and pre-construction. When offered, about 60% of reported sales used it.
Rarely. Cross-border lenders generally don’t lend on raw land; lots are usually bought in cash.
We help buyers from California, Texas and Arizona plan the purchase and connect with cross-border lenders before they make an offer.
How we calculated: We used Los Cabos residential sales closed in the MLS between July 1, 2025 and October 28, 2026 (Cabo San Lucas, Tourist Corridor, San José del Cabo, San José Corridor, Pacific and East Cape; La Paz and Loreto excluded). Of 983 sales, 679 recorded how the buyer paid. “Seller or developer financing” includes owner and developer payment plans. Sold-to-list figures compare the sold price to the original list price (median).
Sources: Los Cabos MLS (Flexmls), closed sales July 2025–October 2026; Global Mortgage (MoXi), “Mexico Mortgage Rates: What U.S. Buyers Actually Pay” (2026); Escape From USA, “Mortgages in Mexico for Foreigners: The 2026 Playbook”; Tanda Casa, “Mortgage in Mexico for Foreigners” (2026). Information verified October 2026.
Disclaimer: This is general information, not financial advice. Rates and lender requirements change often; get current terms directly from each lender. Karla & Erick are MLS members with Century 21 Paradise Properties and are not lenders.
Karla & Erick | Cabo Realty | Century 21 Paradise Properties
Your home in Los Cabos, with people who live here.
Karla Andreu and Erick Flores are MLS members with Century 21 Paradise Properties, focused on luxury golf and oceanfront communities: Querencia, Palmilla, Pedregal, Quivira, Diamante, Cabo del Sol, Cabo Real, Club Campestre and Puerto Los Cabos.
Most of our clients come from California, Texas and Arizona. We help them buy, sell and relocate with real market data, honest advice and one clear plan from the first video call to closing day.
No pressure. No surprises. Just the right home for the way you want to live.
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