borrowing money to build

[baja beauty]

Hi There,
Currently building in Cabo San Lucas. Halfway through build using own funds but now may need to borrow to complete. Does anyone know if this is an easy process. We are not from the USA as are most expats, but from New Zealand. Do the banks view it the same ie Loan to Value ratio and calculating equity

[soldadoswife]

hi...I'm wondering the same thing. we are building with our won funds too. we are building near Tecate.or Ensenada. I'm new and just moving to Mx. My husband is going to cabo this weak to check it out. There is not any work in our area. His bro. lives in Cabo and guranteed him work. would love to have some friends. Add me as a friend if you would like.

[RVGRINGO]

Mortgages are difficult and very expensive in Mexico. It is only easy to get one if you really don't need it. That's why you see construction projects that overlap several generations as the family home grows brick by brick over many years.

[BajaGringo]

RV is right - construction loans are very hard to come by in Mexico without a lot of local established credit and/or collateral. If your budget is tight I would suggest looking to areas where the land and cost of labor is cheaper. Size down your dream villa to a more reasonable casita, be your own general contractor, work alongside your workers and allow your budget to determine the construction progress. You can build a small, simple home in Mexico for very little money if you look outside the more expensive areas, are creative and willing to think outside of the box.

You can add on the maids chambers, upgrade to granite counter tops and marble floors later on in the future...

[baja beauty]

Hi
, Good luck with your move. I am not sure where Ensenada is or how far from Cabo. We are hoping to have the home complete by the end of the year and will live between Australia and Mexico.

Will keep in touch

Originally Posted by soldadoswife

hi...I'm wondering the same thing. we are building with our won funds too. we are building near Tecate.or Ensenada. I'm new and just moving to Mx. My husband is going to cabo this weak to check it out. There is not any work in our area. His bro. lives in Cabo and guranteed him work. would love to have some friends. Add me as a friend if you would like.

[baja beauty]

Hi BG

Thanks for your reply. We are already halfway through building so would have over 65% equity in the finished project[, just need to borrow 35%. We have bought with a fiedicimoso trust, so assume that banks will lend under this title.

Is one bank better than the other in Mexico?

Does anyone have an idea what interest rates are for lending at the moment?

Thanks

QUOTE=BajaGringo;155440]RV is right - construction loans are very hard to come by in Mexico without a lot of local established credit and/or collateral. If your budget is tight I would suggest looking to areas where the land and cost of labor is cheaper. Size down your dream villa to a more reasonable casita, be your own general contractor, work alongside your workers and allow your budget to determine the construction progress. You can build a small, simple home in Mexico for very little money if you look outside the more expensive areas, are creative and willing to think outside of the box.

You can add on the maids chambers, upgrade to granite counter tops and marble floors later on in the future...

[/QUOTE]

[RVGRINGO]

Especially in this financially troubled era, it is the bank itself which can respond to your questions regarding financing. The bank which holds your property in trust should be your first contact.