Foreigners may obtain ownership of property in Mexico. However, in accordance with Mexican law, foreigners can not acquire direct ownership of residential property 60 miles from the border and 30 miles from the coastline. This area is know as the restricted zone.

In the restricted zone, however, banks can act as trustees for foreigners interested in purchasing real estate. The trust is know as the Fedeicomiso. There is an initial fee to set up your trust and an annual maintenance fee as long as you have the trust. Generally, the fee to set up this trust is about US$500 and annually maintenance fees are about the same.

Other useful information:

Your loan will move quickly, the transfer of title may not. To ensure that your transaction is not held up, make sure that your seller has applied to cancel their existing trust. Your dream home is in Mexico, but your loan is in the United States. That means it's tax deductible! Mexican law does not allow foreigners to own land near the coast, so title is held in a bank trust called a "Fedeicomiso". Title insurance is not required in Mexico, but it is highly recommended.