Almost no Mexican bank lends on raw land, least of all to someone earning dollars across the border. That is why direct (owner) financing became the most common way to buy a lot on the coast.
The three ways to pay
- Cash. You pay in full at signing. Sometimes there is a discount—always ask.
- Bank loan. Rare for land, with an interest rate, appraisal, fees and a credit check.
- Direct financing. The developer gives you the term: a down payment and fixed monthly payments. At Grupo Terravista’s developments, interest-free.
How to compare two plans
Don’t compare monthly payments: compare the total paid. Multiply the payment by the number of months and add the down payment. If the result is higher than the list price, the difference is interest, whatever the ad says.
A real example: Colinas del Mar costs USD $24,000. $1,440 down plus 120 payments of $188 comes to $24,000. The difference is zero.
What “no credit check” means
That your credit history is not pulled. It does not mean no contract: price, term, due dates and late-payment consequences must be in writing.
When each one makes sense
If you have the money, cash gives you bargaining power. If you would rather stay liquid, an interest-free plan lets you pay the same price over ten years.
This page explains general rules and is not legal or tax advice. Before you sign, consult a Mexican notary public or attorney.
