A mortgage loan in Peru

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Tarapotina
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A mortgage loan in Peru

Postby Tarapotina » Fri Feb 16, 2018 5:19 pm

I am a Peruavian citizen and my husband is an American citizen without carnet de Extranjeria.
We both are living in the USA and we are thinking about buying some land in Peru.
We want to pay a down payment and then take a monthly mortgage from a bank in Peru.
I called some banks asking about requirements and they said it won't work without having incomes from Peru and my husband is the only one who has an income from his job now in the USA.
Does anybody know a bank or another way to get a loan in Peru?


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Re: A mortgage loan in Peru

Postby mrsteak » Fri Feb 16, 2018 6:02 pm

Unlikely... the banks want you to have local income, so they can grab the money from your local bank account in case you fail to pay. You should also take into account that mortgage rates in Peru are 3-4x higher than in civilized world, in other words it is a rip off!

I would rather try to get a private loan in cash from US bank and then transfer that cash to Peru and buy whatever you want. Probably you will need to mortgage your home in US in order to be able to do that. A small loan (10-20.000) without mortgaging your home may work in US if you have a good score.

Btw: buying anything now in Peru is a very bad idea. I won't buy anything here.
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Re: A mortgage loan in Peru

Postby Tarapotina » Sat Feb 17, 2018 11:49 am

Why do you think buying is a bad idea in Peru?
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Re: A mortgage loan in Peru

Postby mrsteak » Sun Feb 18, 2018 4:43 pm

It is a very bad idea to buy property in Peru using a mortgage. You are buing on top of a real estate bubble, that means you are very likely to loose lot of value on your investment. I'm not sure how banks in Peru would handle a dropping property value if you hold a mortgage on it, but let me tell you that in most EU countries they would execute the mortgage and take your property unless you can provide additional security.

Example from Spain in 2009:

you had a property bought for 350.000 having 50.000 cash + 300.000 mortgage.

Now the market plummeted and your property lost the value and was worth only lets say 200.000. The bank re-evaluates your mortgage and tells you that you have a 280.000€ debt with them (lets assume you paid them back already 20.000) but on the other hand you have only a 200.000€ security (the property). They kindly ask you to provide 80.000€ in the next 48 hours OR they will take and auction your property to execute the mortgage. You do not have 80.000? ahh... what a pitty! Then they take your property and throw it at the market to be sold at any price. As the market collapsed already there was only one offer for your property and it is sold for 100.000€.... now what happens is: you lost your property, the bank got 100.000 however you still have a 180.000€ debt with them. Now guess what... all your remaining life you will be working to pay that debt back to the bank. You have no property but only debt for NOTHING!

I'm not sure how the banks will handle a collapse in Peru but as we have seen in Spain it was disastrous for the people. The debts in Spain are even inherited to the children LOL. There are hundred thousands of people in such a situation in Spain. Slaves of the banks for the next 3 generations. Now tell me you are absolutely sure it will not happen in Peru? Then go and get your mortgage.
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Re: A mortgage loan in Peru

Postby Tarapotina » Sun Feb 25, 2018 5:40 pm

Tarapotina wrote:I am a Peruavian citizen and my husband is an American citizen without carnet de Extranjeria.
We both are living in the USA and we are thinking about buying some land in Peru.
We want to pay a down payment and then take a monthly mortgage from a bank in Peru.
I called some banks asking about requirements and they said it won't work without having incomes from Peru and my husband is the only one who has an income from his job now in the USA.
Does anybody know a bank or another way to get a loan in Peru?

Thanks for the advice. Best to avoid banks altogether.
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Re: A mortgage loan in Peru

Postby Alan » Mon Feb 26, 2018 7:18 pm

I have never tried to do what you suggest, but banks might consider the same type of permanent income that the goverment dows in order to apply for a rentista visa (basically a visa for retirees who do not plan or working). http://www.expatperu.com/legalities/wha ... ista-visa/ , however, in previous posts memebers have stated that they have always been turned down. Banks are all about managing risks here.

As another poster mentioned, if you have the way to take a loan from the US in order to pay in cash here, you will 1) get a better intreres rate; 2) you will be able to negotiate a better purchase price with cash in hand; 3) you will save yourself a ton of anguish.

Good luck.
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Re: A mortgage loan in Peru

Postby DC_20833 » Thu Jan 17, 2019 8:44 am

I have never tried a Mortgage here rates are too high. As far as the market here the prices have dropped and sales are slow. During the real estate boom, I had several apartments but sold all of them except my residence. I do loan money on improved real estate here it must have an occupiable residence or be an apartment. I do a quickie analysis and look at your ratios and can quote you an interest rate.
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Re: A mortgage loan in Peru

Postby rudder » Thu Jan 31, 2019 3:04 pm

The op specifically talked about land. Would you say the real estate prices in Peru have slumped now across the board? When did this start?

I was viewing prices of properties in San Martin just a couple months ago, and thought prices there were still unrealistically high.
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Re: A mortgage loan in Peru

Postby rudder » Thu Jan 31, 2019 3:05 pm

DC_20833 wrote:I have never tried a Mortgage here rates are too high. As far as the market here the prices have dropped and sales are slow. During the real estate boom, I had several apartments but sold all of them except my residence. I do loan money on improved real estate here it must have an occupiable residence or be an apartment. I do a quickie analysis and look at your ratios and can quote you an interest rate.
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Re: A mortgage loan in Peru

Postby rudder » Mon Mar 18, 2019 1:43 pm

DC_20833 wrote:I have never tried a Mortgage here rates are too high. As far as the market here the prices have dropped and sales are slow. During the real estate boom, I had several apartments but sold all of them except my residence. I do loan money on improved real estate here it must have an occupiable residence or be an apartment. I do a quickie analysis and look at your ratios and can quote you an interest rate.


That’s great, but I’m just looking at land near San Martin. Are you in Lima? How different is your market from the rest of the country.
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