This week I am comparing a typical Bank Trust Home Purchase (Fideicomiso) to a Land Lease Home Purchase. When an American citizen purchases a home in Mexico, the title for the home and the land are held in the name of a Mexican bank. The buyer is solely the beneficiary of the trust.
Another method of purchasing a home in Mexico, is to arrange your own personal loan or use an existing home equity loan to pay cash for the home, and lease, not buy, the land. You receive a Bill of Sale for the home in your name. You can live in it, rent it, sell it, or make improvements. You are only renting the land. This is a popular option for beach property, since all beach land in Mexico is government land and therefor public.