Press Release
November 1, 1999
LOS ANGELES, CA -- U.S. residents looking to avoid the high cost of buying vacation and retirement property in
Mexico can now take advantage of significantly lower-cost U.S. financing through a special program being offered
by Metrociti Mortgage Corp.
"Mexico's principal resorts are becoming hot areas for primary and secondary homes. However, most U.S. residents
are turned off by the high cost and uncertainty of Mexican financing, where interest rates can run as high as 30
percent," said Tim Kruger, Director of Metrociti's International Division. "There's been growing demand
for a mortgage loan product comparable in pricing to what's offered for first trust deeds in the U.S. We believe
our cross-border loan product will meet that need."
In Mexico, buyers typically chose between Mexico bank financing and seller financing. Mexico's banks currently
offer loans with interest rates at 27 percent and require a minimum down payment of 50 percent of the value of
the property. Sellers also require 50 percent down and most will only carry a loan for an average of three to five
years, at which point buyers must incur refinancing costs. Seller interest rates range between 13 percent and 14
percent.
Metrociti's loans are targeted toward retirees and vacationers seeking affordable homes in beautiful surroundings.
The company offers a 30-year, fixed-rate loan requiring a down payment as low as 20 percent by the buyer. There
are no loan application fees and loan pre-qualification is free. Borrowers must be U.S. citizens or resident aliens
with verifiable income and assets in the U.S. The current mortgage rate for Metrociti's special loan is 9.5 percent.
Loans can be for up to $500,000 to purchase an existing home, condo or townhouse, or refinance an existing loan.
Cash-out refinancing is also available. Metrociti requires a title insurance policy and offers expert guidance
on Mexico's mortgage closing process.
Kruger noted that Metrociti provides a safe means to purchase Mexican property. "Recently published stories
have highlighted the problems that a very small number of buyers have faced in Mexico," he said. "Our
loan product was designed to eliminate those risks. With title insurance, comprehensive title searches and a full
knowledge of how real estate transactions are conducted in Mexico, we've replaced the inherent uncertainty in buying
property with a process that is safe and fully protects the buyer's funds."
There are a number of hot areas in and around Mexico resort towns where U.S. residents are buying property. They
include Cabo San Lucas, Puerto Vallarta, Cancun and Puerto Penasco, and Rosarita Beach and Ensenada on the Baja
peninsula. These areas are within a four to eight hour drive of most Southwestern states, including Texas, New
Mexico and Arizona and Southern California. They are close to airport facilities and flights in and out of these
areas average one to three hours.
The area in and around Puerto Penasco has been the hottest for property sales to U.S. residents looking for condos,
town homes and villas. Property there is highly affordable. Along the Sea of Cortez, between 40,000 and 50,000
units are planned for construction in the near future. Total aggregate property sales in the area are expected
to double annually over the next several years.
Those interested in Mexico property loans can call Metrociti at (310) 575-3055.
Established in 1989, Metrociti Mortgage Corp. is one of the nation's leading retail mortgage banker/brokers. Metrociti
Mortgage Corp. and its affiliates have originated billions in residential loans since it was established.