Dear Friends,

First, we would like to take this opportunity to thank all of our associates, real estate agents, brokers, and developers that we have been working with since we first pioneered Mexico real estate financing to US citizens with GE Money. Your continued support of Finance North America in 2006 has once again allowed us to be rewarded with a leadership award from GE Money, most recently for the most loans funded in the First Quarter 2006. This award, along with the our prior awards received, GE Pioneer Award and the 2005 Leadership Award for most loans funded through GE last year, has allowed us to secure multiple additional lending products to offer our clients.

We are pleased to announce that our proven success has given us the opportunity to now fund loans in all geographic areas of Mexico, as well as the ability to perform cash out refinance loans and construction loans.

We are committed to providing the best lending options available to foreigners purchasing real estate in Mexico, and we look forward to continuing doing business with you throughout 2006 and into 2007.

Below you will find our May 2006 newsletter. This issue contains a variety of information on lending in Mexico, as well as answers to a few of the most frequently asked questions (FAQ) on buying and lending in Mexico. We hope you will find the information valuable.
Best Regards,

Russ Schreier,
President

Christian Alvarez,
Vice President

Finance North America
Toll free from the US: 1.866.Yes 4 Mex (1.866.937.4639)
Direct: 1.858.481.4871
From Mexico: 001.858.481.4871

www.FinanceNorthAmerica.com

The FNA Story

by Lilly Rao

Amidst the skyrocketing prices and overpopulation in the beach communities in Southern California, in 2003 San Diego resident and real estate financing expert Russ Schreier looked south of the border to find a home in Mexico for his family getaways. With over five thousand miles of spectacular Mexico coastline, he found an abundance of desirable destinations, all conveniently located just a few hours by car or plane from the US.

What We Do

As specialists in the field, we offer the following three types of lending:

Purchase: Finance North America offers financing in most resort locations throughout Mexico. Loan amounts are available up to $5 million with as little as 25 percent down, and 20 and 30 year terms .

Refinance: Cash out refinance loans will be available in April 2006 at fixed rates for 20 year periods. Loan amounts are available up to $5 million with 25 to 30 percent equity.

Construction: Finance North America‘s construction financing has the same easy guidelines as our pur-chase and refinance loans, and then converts effortlessly into our permanent financing upon construction completion.

Owning Real Estate in Mexico

Below are the basic principles of owning in Mexico.

• A foreigner may acquire rights over real estate in Mexican coastal and border zones through a trust, called Fideicomiso, which is a legal instrument similar to those in the US.

• Through this trust, real estate is administered by a qualified and licensed bank on behalf of the beneficiary of the trust (the owner).

Frequently asked Questions

Is the interest paid on the loan tax-deductible?
Per IRS regulation Section 163 (C), as well as Publication 936, interest paid on primary and secondary residences up to an aggregate one million dollars in loan amount is tax deductible. The IRS regulation does not specify that the home must be located in the United States, and thus it is the opinion of the reputable tax consultants that interest paid on a home loan on property in Mexico is in fact deductible (please consult your tax advisor for applicability to your specific tax situation).