If you’ve been searching for San Felipe lots for sale with financing, you’ve probably noticed something: unlike the U.S., you don’t see many traditional mortgages from Mexican banks for foreign buyers.
Instead, one phrase keeps popping up on listings and developer websites: seller financing or developer financing.
For U.S. retirees, snowbirds, and investors, this can actually be a huge advantage—if you understand how it works and how to protect yourself. In this guide, we’ll walk through the full picture so you can decide with confidence.
Why So Many San Felipe Lots Come With Seller Financing
In the U.S., your first instinct is “Talk to the bank.” In Mexico, especially for land, the reality is different:
- Mexican banks rarely finance raw land for foreigners.
- Cross-border lending is complex and expensive.
- Even when loans exist, requirements can be strict and paperwork heavy.
So coastal developers in Baja California—especially in growth areas like San Felipe—often become the “bank” themselves. They offer direct, in-house financing so you can:
- Reserve a lot with a down payment
- Pay the balance in fixed monthly installments over several years
- Secure a specific lot today, even if you’re not ready to build yet
For the right buyer, it’s a simple way to lock in a piece of coastline without wiring the full amount upfront.
How Seller Financing Works Step by Step
Every project is a little different, but most San Felipe lots for sale with financing follow a similar structure. Think of it in clear phases:
1. Choose Your Lot and Confirm the Basics
You start by choosing a specific lot in the development. Before talking money, verify:
- Exact location, size, view, and access
- What services are planned or already included (power, water, road, security)
- Whether you’ll have beachfront, beach access, or hillside with views
This is where you compare notes between projects: not all “ocean view” is created equal.
2. Review Legal Status and Developer Credentials
Before you look at payment plans, make sure you’re actually buying something legally solid:
- Land is not ejido (communal land)
- Lots are properly subdivided and registered in the Public Registry
- The developer has a clear title and the right to sell
- You can hold the property via fideicomiso (bank trust) or a Mexican entity when the time comes
Ask to review documentation with a Mexican notario and/or cross-border attorney who can explain it in plain English.
3. Reserve the Lot and Sign a Promissory Agreement
Once you’re comfortable with the project, you’ll usually:
- Pay a reservation deposit (often applied to your down payment).
- Sign a promissory contract that outlines:
- Final price in USD
- Down payment amount and due date
- Monthly payment amount and schedule
- Interest rate (if any)
- What happens if you’re late or decide to pay off early
Think of this as the “roadmap” of the whole deal.
4. Make the Down Payment
Down payments for seller-financed San Felipe lots typically range from 20% to 35% of the lot price, depending on:
- How long the term is (shorter term, sometimes lower interest)
- Whether the plan is 0% interest or includes a fixed annual rate
- How early in the project you’re getting in (early buyers sometimes get more flexible terms)
After the down payment, you start making your monthly payments, usually in USD.
5. Monthly Payments Over 3–7 Years
Most plans fall in the 36 to 84-month range. Your contract should clearly state:
- Exact monthly amount
- Due date each month
- Currency (usually USD)
- Whether there’s interest (0% vs 4–8% annual, for example)
- Whether there’s a balloon payment at the end (many retirees prefer no balloon)
It should also explain:
- Grace periods for late payments
- Late fees (flat fee or percentage)
- At what point non-payment could lead to cancellation of the contract
You want to understand this before you fall in love with a specific lot.
6. Title Transfer Once You’ve Paid in Full
In most seller-financed arrangements:
- You gain possession rights early (you can visit, enjoy, and in many cases start planning or even building once the developer allows it).
- Full title (via deed or bank trust, depending on structure) is usually transferred once the balance is fully paid.
Make sure your contract explains:
- When, where, and how final title will be transferred
- Who pays closing costs, notario fees, and the bank trust setup (if needed)
- Which documents you or your U.S. advisors will receive
Example: What Seller Financing Might Look Like
Let’s use a simple, hypothetical example just to visualize the math. Numbers will vary by project, but this gives you a feel:
- Lot price: $40,000 USD
- Down payment: 30% = $12,000 USD
- Financed balance: $28,000 USD
Scenario A: 0% interest, 7-year term (84 months)
- $28,000 ÷ 84 ≈ $333/month
Scenario B: 6% interest, 7-year term
- Approximate payment: around $410–$430/month (depending on amortization schedule)
When you evaluate San Felipe lots for sale with financing, ask the salesperson to show you both the:
- Total paid over the life of the contract, and
- Monthly impact on your budget
That way you can compare apples-to-apples between developers and against a full cash purchase.
Advantages of Seller Financing for U.S. Buyers
For many U.S. retirees and investors, seller financing is what makes buying in San Felipe actually doable.
1. Easy qualification
No FICO score, W-2s, or U.S. bank paperwork. The developer mainly cares about:
- Your identity
- Your ability to make the agreed payments
2. Faster decisions
You can often:
- Reserve a lot after one visit (or even virtually)
- Lock in a price while you’re still planning the rest of your retirement or investment strategy
3. Fixed payments in USD
Most serious developments keep everything denominated in USD, which gives you:
- Protection from peso exchange swings
- Clear, predictable monthly budgeting
4. Flexibility to “build when ready”
Seller financing is ideal if you:
- Want to secure land now
- Plan to build your beach house in 2–5 years
- Prefer to stage your cash flow instead of funding everything at once
Risks and Red Flags to Watch For
Every great opportunity still requires due diligence. With seller financing, these are the big things to watch:
1. Weak or vague contracts
If the agreement doesn’t clearly explain:
- Default scenarios
- Title transfer
- What happens if the developer fails to complete promised infrastructure
…pause and get legal review before signing anything.
2. No evidence of legal subdivision or registration
Never rely only on a brochure or verbal explanation. Ask for documentation that proves:
- The development is properly subdivided
- The land is free of liens and not ejido
- Your future lot will be registered in your favor (via deed or bank trust)
3. Over-promising on amenities
Financing is great—but ask:
- Which amenities are guaranteed in written plans?
- What is already built vs “coming soon”?
- Are there realistic timelines for roads, utilities, and future pools or clubhouses?
4. Poor communication and transparency
If the team handling a complex, multi-year financial relationship with you doesn’t answer questions clearly now, that’s a warning sign.
Checklist Before You Sign a Seller Financing Contract
Use this quick checklist to protect yourself before committing to any San Felipe lot with seller financing:
- ✅ Independent legal review by a Mexican notario and/or cross-border real estate attorney
- ✅ Written confirmation that the land is not ejido and has clean title
- ✅ Clear payment schedule, interest rate, and total amount to be paid
- ✅ Explanation of what happens on default, early payoff, or resale
- ✅ Contract available in English (or bilingual) so you truly understand it
- ✅ Clear roadmap for title transfer at the end of the term
- ✅ Evidence that the developer has an actual history or serious long-term plan
If a developer is used to working with U.S. buyers, they should be comfortable providing all of this.
How to Compare Different San Felipe Financing Offers
When you’re evaluating multiple San Felipe lots for sale with financing, don’t just compare the monthly payment. Also look at:
- Location & views: Beachfront vs. beach access vs. hillside
- Legal certainty: Title, registration, and clarity around ownership structure
- Length of term: 3, 5, or 7 years—and how that fits your timeline
- Interest: 0% vs fixed rates vs balloons at the end
- Developer support: Help with bank trust, building, and long-term service
The “cheapest monthly payment” isn’t always the best choice if it comes with legal risk or an unreliable developer.
Next Step: See Real Numbers for Your Situation
If you’re serious about exploring San Felipe lots for sale with financing, the smartest next move is to see real numbers based on:
- Your target budget
- Your timeline to build or retire
- Whether you’re paying cash, using seller financing, or a mix
At Rafael by the Sea, the team is used to working with U.S. retirees and investors who are buying in Mexico for the first time. They can walk you through:
- Current lot availability
- Financing options available to U.S. buyers
- A side-by-side breakdown of monthly payments and total cost
Schedule a free, no-pressure consultation to review real financing scenarios for San Felipe lots and see if owning a piece of the Baja coast fits your retirement or investment plan.
