Most foreign buyers in Puerto Vallarta pay cash.
That is not because financing is impossible. It is because once buyers see the actual terms, cash — or borrowing against something they already own at home — usually wins. Understanding why tells you a lot about whether financing makes sense for you.
Here are the real routes, with real numbers as of 2026.
A note before the numbers: every rate, LTV and minimum below is a September 2026 figure and they move. I am a real estate agent, not a mortgage broker or a financial advisor — treat these as approximations to orient you, confirm current terms directly with lenders, and talk to a financial advisor about which route fits your whole picture.
Route 1: Mexican bank mortgage in pesos
Mexican banks do lend to foreigners. The terms are the issue.
Interest rates: roughly 9% to 14% for peso-denominated loans to foreign borrowers. Quotes specific to Puerto Vallarta in 2026 tend to land in the upper half of that band, and the all-in annual cost once fees are folded in — the CAT — often reads higher still. Ask for the CAT, not just the rate.
LTV: typically 50–70% for foreign nationals, meaning a 30–50% down payment. Permanent residents fare considerably better — up to 90% in some cases — which is one of several ways residency changes your financial life here. I covered the paths in temporary vs permanent residency.
The currency risk nobody prices correctly. This is the part that deserves your attention.
If you earn in dollars and borrow in pesos, you are taking a currency position on top of a real estate position. When the peso strengthens against the dollar, your monthly payment in dollar terms goes up — and you have no control over it. A five-million-peso loan is a very different obligation at 18.5 pesos to the dollar than at the roughly 16.9 where Banxico fixed it in early September 2026. That is not a hypothetical swing. That is the last two years.
I wrote about how much this matters in what the peso-dollar exchange rate means for your purchase. On a purchase it is a one-time effect. On a 15-year mortgage it is a recurring one, every month, for the life of the loan.
Who this route suits: buyers who earn in pesos, or permanent residents with Mexican income and a Mexican credit history.
Route 2: Cross-border USD mortgages
A specialized niche that has matured considerably.
Interest rates: roughly 8.99% to 9.99% for qualified buyers, as quoted in September 2026. Notice how close that sits to the bottom of the peso range — the gap between cross-border and peso lending is narrower than the headline numbers suggest, and it is not the main reason to choose this route.
LTV: capped at 65% of the purchase price. Of the purchase price, not the appraised value — a distinction that matters whenever the two differ. In practice that means 35% down.
How they work: loans are denominated in USD, they underwrite against your U.S. or Canadian credit profile, and they accept non-resident applicants. Specialist lenders and brokers serve this market specifically.
The lender I have actually closed transactions with is MoXi. My contact there is Troy Houck, and they keep a satellite office in Puerto Vallarta rather than running everything by email from somewhere else. Message me and I will introduce you — a warm introduction gets you further than a cold call, and it costs you nothing. They write fixed-rate loans with no prepayment penalty and no balloon payment, with terms running up to 25 years. The loan is originated in Mexico but serviced in the United States, and they issue a 1098 at year end — the form a U.S. taxpayer needs in order to claim mortgage interest. Whether you can actually deduct it depends on your own return, so ask your tax preparer rather than assuming.
One limitation to know before you get your hopes up: MoXi lends to U.S. citizens only. If you are Canadian — and a large share of this market is — that door is closed and you will be shopping other specialist lenders. Confirm current minimums, rates and terms directly with whoever you approach; those move faster than any blog post.
The advantages are real: no currency mismatch if you earn in dollars, a rate that still beats peso lending, and underwriting that resembles what you know from home.
The tradeoffs:
- Loan minimums exclude smaller purchases — many start around $350,000 USD, which rules out a lot of Puerto Vallarta condo inventory
- Lower LTV means a larger down payment than a U.S. purchase would require
- Fees and closing costs run higher than a domestic mortgage — MoXi’s own fees come to about 3.5% of the purchase price
- The process adds time to a transaction that is already 45–90 days, and financing contingencies make your offer weaker against a cash buyer
Who this route suits: buyers purchasing above roughly $350,000 who want to preserve capital at home and can accept 35% down.
Route 3: Developer financing
Common in pre-construction and new developments, and frequently the most flexible option available.
Terms vary enormously because they are set by the developer, not a regulated lender. Typically: substantial down payment, payments during construction, and a balance due at delivery. Some developers carry paper after delivery; most do not.
What to watch:
- Interest may be embedded in the price rather than stated as a rate. Compare the financed price against the cash price to find the real cost of the money.
- You are taking developer risk, not just property risk. In pre-construction you are buying a contractual right to a thing that does not exist yet. Research the developer’s completed projects — not their renderings.
- Understand precisely what happens if you miss a payment. Some contracts are considerably less forgiving than a bank would be.
Who this route suits: buyers comfortable with pre-construction who have done real diligence on the developer.
Route 4: What most buyers actually do
Borrowing at home against an asset they already own — a HELOC, a cash-out refinance, a securities-backed line of credit, or a retirement distribution.
The reason this dominates is simple arithmetic: a HELOC in the U.S. or Canada is generally cheaper than any mortgage available in Mexico, the underwriting is faster and familiar, and it makes you a cash buyer here — which is worth real negotiating power in a market where sellers discount for certainty and speed.
The tradeoffs: you are putting your primary residence at risk for a second property, and you lose the natural hedge of having the debt in the same currency as the asset.
Who this route suits: most foreign buyers in Puerto Vallarta, honestly. It is worth pricing before you assume Mexican financing is the answer.
The comparison
| Mexican peso | Cross-border USD | Developer | Borrow at home | |
|---|---|---|---|---|
| Rate | 9–14% | 8.99–9.99% | Often embedded in price | Your home-market rate |
| LTV | 50–70% (90% permanent residents) | 65% of purchase price | Varies | N/A |
| Currency risk | High if you earn USD | None | Usually USD | None |
| Speed | Slow | Moderate | Fast | Fastest |
| Minimum | Varies | Often ~$350k USD | Project-specific | N/A |
| Makes you a cash buyer here | No | No | No | Yes |
Three things that surprise people
One: financing weakens your offer. In Puerto Vallarta, a financing contingency is a meaningful negative in a seller’s evaluation, and a cash offer can win against a higher financed one. In a market with expanded inventory, that matters less than it did in 2022 — but it still matters.
Two: closing costs are separate and they are real. Buyer closing costs run roughly 4–6% of the purchase price for transfer tax, notary fees, and the fideicomiso setup, entirely apart from your down payment. Full breakdown in what it really costs to buy. Financing adds its own fees on top.
Three: you will still need Mexican banking. Predial, HOA, utilities, and eventually your rental income all run through the Mexican system. Getting an account as a foreigner has its own requirements and its own timeline — see opening a bank account in Mexico as a foreigner.
How I would actually approach it
Price your home-country options first. A HELOC or cash-out refi at your domestic rate is very often the cheapest money available to you, and it makes you a cash buyer here. Get that number before you look at anything else.
If that is not available or not appropriate, cross-border USD lending is still the better of the Mexico-side options for someone earning in dollars — but be clear about why. At 8.99–9.99% against 9–14% in pesos, the rate advantage is real but modest. The thing genuinely worth paying for is the absence of currency risk.
Take a peso mortgage only if you earn pesos, or you are a permanent resident with Mexican income. Otherwise you are stacking a currency bet on top of a property purchase, and that is a genuinely different risk than the one you set out to take.
And in every case, get your financing sorted before you make an offer. Sellers here take pre-arranged buyers seriously and treat “I’m still figuring out financing” as a reason to keep showing the property. Once you do have an accepted offer, the timeline from there to keys runs 45 to 90 days — financing does not shorten it.
What I will tell you that costs me a commission
Sometimes the honest answer is that you should buy less house. If the only way the purchase works is a peso mortgage at 13% while you earn dollars, the deal is not being financed — it is being stretched. A smaller unit you can pay for outright will make you happier in this town than a bigger one that owns a piece of your income for fifteen years, and I would rather write the smaller ticket.
Message me on WhatsApp and I will walk you through which route fits your situation — including when the honest answer is that financing does not make sense for your purchase.
— Neft Román, Legacy Vallarta Realty
Member of AMPI Puerto Vallarta y Compostela
Rates, LTV ratios, and lender terms described are 2026 figures and change frequently. I am a real estate agent, not a mortgage broker or financial advisor — confirm current terms directly with lenders and consider speaking with a financial advisor about which route fits your overall picture.
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