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Far Homes, focused on streamlining how people buy property in Mexico, unveiled Financing Finder today, according to a July 25 announcement sent to Inman.
The marketplace for properties south of the border will now offer the value of linking aspiring owners with the people and processes involved with financing homes in the very popular U.S. second-home destination.
The solution will allow users to search within a network of reputable, verified lending sources that can customize mortgage needs accordingly. Understanding how funds are transferred when buying abroad is often an intimidating step for first-time Mexico buyers.
A lot of factors, many unseen by American buyers, come into play when buying in Mexico, such as location, property type and even age, Far Homes CEO Chet Kittleson said in a statement. The new Far Homes feature aims to resolve that.
“Unlike what buyers may be used to in the U.S., loan products for international buyers in Mexico are fragmented, and there haven’t been resources for buyers to get clarity on what does or doesn’t work for them,” Kittleson said. “So buyers really need a customized report.”
The company conducted extensive research to determine the most number of bonafide resources for second-home buyers and those looking to relocate to many regions of Mexico. It also looks to offer less common options, such as home equity loans, reverse mortgages and builder financing.
While many buyers use cash to purchase what are often more affordable homes in Mexico, a better understanding of financing can open the door to a larger market.
This launch coincides with the escalating demand for Mexican properties, the company said.
The Cabo Sun reported in late 2022 that “more Americans than ever are buying homes in Mexico.” Reasons cited for the recent boom aren’t hard to figure out.
“A SoCal resident that wants to purchase a home in Newport Beach or Laguna Beach in California would have to pay north of 3 million dollars on average. Those same folks could get a Cabo home for around 1 million to 2.5 million dollars,“ according to the newspaper.
While Mexico’s proximity makes it an ideal foreign destination in which to own a home, it’s not the only country attracting American real estate investment interest.
TheStreet.com reported last month that Spain, Italy and Costa Rica are emerging locales for vacation property, as are Portugal and Jamaica. The list ranked Mexico as the third most popular option.
Canadians, too, are finding Mexico a good option.
“While retirees have driven this trend for decades, it’s been increasing since 2020 when the rise of remote work, and the ‘live and work’ anywhere model became more commonplace, giving even more people the opportunity to make the move, Far Homes said.
The company serves homebuyers searching in coastal Quintana Roo, primarily in the cities of Cancun, Playa del Carmen and Tulum. It has plans to expand to Puerto Vallarta by the end of this summer.
Far Homes raised a $2.25M pre-seed investment in September 2022, Inman reported.