With Coldwell Banker Real Estate, discover what type of financing you can obtain to buy land, which institutions offer it, what the requirements are, and how to choose the best option for you.
Before starting your search and your next real estate investment, do you already know what a mortgage loan is? Start off on the right foot!
Loan to Buy Land in Mexico in 2025: Everything You Need to Know
What Is a Loan to Buy Land and How Is It Different from a Mortgage Loan?
A loan to buy land is a type of financing granted by banking or government institutions specifically for the acquisition of a lot or parcel of land, either for residential use or investment purposes. According to Coldwell Banker Mexico Real Estate, unlike a traditional mortgage loan—which is focused on purchasing an already built home—this type of financing allows the buyer to acquire vacant land, whether urban or semi-urban, with the intention of building in the future or holding it as an investment asset.
Are you buying land? This is what you need to know to take the next step.
What Requirements Must You Meet to Obtain One in 2025?
Although requirements vary by institution, the most common requirements to apply for a land loan in Mexico in 2025 are:
- Being of legal age (18 years old).
- Proof of stable income (pay stubs, tax returns, or bank statements).
- Good credit history with the Credit Bureau.
- Minimum employment seniority (usually 1 year).
- Down payment of 10% to 30% of the land’s value.
- Property appraisal and verification of land use zoning.
- Urban or semi-urban location of the land, with access to basic services.
Tip: Rural land or land located in irregular zones is generally not financed by banks or institutions such as Infonavit or Fovissste.
Main Institutions That Offer Land Loans in Mexico
Here are the most prominent institutions offering this type of financing in 2025:
1. BBVA Mexico
- Product: Land Mortgage Loan
- Amount: From $200,000 to $15 million MXN
- Term: Up to 15 years
- Down payment: Minimum 20%
- Interest rate: From 10.45% annually
2. Santander
- Product: Land Mortgage
- Benefit: Interest rate discount if construction is later financed with them
- Down payment: From 20%
- Term: Up to 15 years
3. Scotiabank
- Product: Loan for Urbanized Land
- Condition: The land must be located in a development with all services available
4. Infonavit
- Product: Infonavit Land Loan
- Conditions: Up to 90% of the land’s value if the worker has sufficient payment capacity
- Advantage: Payments can be made through payroll deductions
5. Fovissste
- Product: Own Land Program
- Only for government employees
- Must be actively employed and contributing
What Type of Land Can You Buy with These Loans?
The land must meet certain conditions:
- Have residential or mixed-use zoning.
- Be legally regularized.
- Have minimum infrastructure: paved streets, drainage, electricity, and potable water.
- Not be located in risk zones or environmentally protected areas.
Advantages and Disadvantages of a Land Loan
Advantages:
- Opportunity to buy before the land increases in value.
- You can build according to your needs.
- Some loans are compatible with subsidies or support programs.
Disadvantages:
- Higher down payment compared to a traditional mortgage.
- Shorter repayment terms (maximum 15 years).
- Not all land qualifies for financing.
Land Loan Simulator: How Do You Know How Much You Can Afford?
All banks offer online simulators where you can estimate your loan amount, down payment, and monthly payments. We recommend trying:
- BBVA Simulator
- Infonavit Simulator
- Santander Simulator
On the Coldwell Banker Mexico Advisors website, you can also find our digital calculator to simulate your mortgage loan.
Key Tips for Choosing the Best Land Loan
- Compare interest rates and the Total Annual Cost (CAT/APR).
- Check loan flexibility: prepayments and the option to build later.
- Ask about promotions: some banks offer preferential rates for a limited time.
- Seek real estate advice to ensure the land is located in a high-value growth area.
- Confirm that you can register the property title in your name without complications.
Coldwell Banker Real Estate: Is It Better to Pay Cash or Use a Loan?
It depends on your financial situation. If you have sufficient liquidity, paying cash can help you avoid interest. However, a loan allows you to keep your capital available for other investments and take advantage of opportunities without waiting to save the full amount.
How to Prepare Your File to Get Approved Faster
- Have your proof of income and bank statements ready.
- Check your credit history with the Credit Bureau.
- Request a land appraisal from an authorized appraiser.
- Keep property tax receipts, cadastral map, and land-use certificate on hand.
- Make sure the land is free of liens or encumbrances.
Conclusion
Buying land in Mexico in 2025 can be an excellent financial decision if you choose the right location and secure the appropriate financing. Land loans allow you to acquire properties in areas with high growth potential and build your wealth gradually. With the right guidance, by comparing options and meeting the requirements, you can take the next step toward your real estate investment.
Sources:
- BBVA Mexico
- Infonavit
- Santander Mexico
- Scotiabank Mexico
- Fovissste
