How to Send Money from Latin America to Buy Property in the USA

Introduction: The Money Has to Arrive — And It Has to Be Documented

One of the most underestimated steps when buying property in the United States from Latin America is the logistics of the money itself. Having the funds is not enough. US lenders need to know where they came from, how long they have been in your account, and how they arrived in the United States. A mistake in any of these steps can delay your closing or cancel your loan entirely.

At Home Financial Group LLC we have helped buyers from Colombia, Brazil, Argentina, Mexico, Venezuela and dozens of other countries navigate this process. In this guide we explain exactly what you need to do — and what you must avoid — so that your funds arrive ready for closing.

What Is Fund "Seasoning" and Why Does It Matter?

The term seasoning refers to how long money has been on deposit in a verifiable bank account before being used for the down payment or closing costs. Foreign national mortgage lenders in the United States typically require funds to have been on deposit for 60 to 90 days before the closing date.

Why does this requirement exist? Because federal regulators require lenders to verify the origin of all funds used in a real estate transaction. Seasoning demonstrates that the money was not recently borrowed, received as undeclared payment, or from an illicit source. It is the system's first line of defense against real estate money laundering.

What This Means in Practice

• If you plan to close in August, your funds must be in a verifiable account from late May or early June at the latest.
• Funds can be in a bank account in your home country or in a US account, as long as the bank can provide statements for the last 2 to 3 months.
• Large recent deposits within the 60- to 90-day window will raise questions and require additional documentation explaining their origin.
• Cash stored at home or in physical assets that is converted to bank money just before closing is a red flag for mortgage underwriters.

Key recommendation: Consolidate and verify your down payment funds at least 90 days before your target closing date. If you have funds spread across multiple accounts or countries, start the consolidation process well in advance.

Methods for Transferring Money to the United States

Not all transfer methods are equal from a mortgage documentation standpoint. Here are the main methods and their implications:

1. International Bank Wire Transfer (SWIFT)

This is the preferred method for mortgage lenders because it generates a complete, traceable documentary trail. The SWIFT system (Society for Worldwide Interbank Financial Telecommunication) connects most of the world's banks and allows direct transfers between institutional accounts.

• Advantages: Fully traceable, accepted without objection by mortgage underwriters, the receiving bank issues official confirmation.
• Disadvantages: Can take 3 to 5 business days to process; banks charge fees on both the sending and receiving ends (typically $25–$50 USD plus correspondent bank costs); exchange rates applied by banks may be unfavorable.
• Documentation generated: Wire confirmation from the sending bank, SWIFT receipt, account statement showing the debit — all of these are acceptable to the lender.

2. Specialized Money Transfer Services (Wise, Remitly, Western Union Business)

Platforms like Wise (formerly TransferWise) offer more competitive exchange rates than banks and generate detailed transfer documentation. However, their acceptability for mortgages depends on the underwriter.

• Advantages: Better exchange rates, lower fees, variable speed (some transfers credit in 1 to 2 business days).
• Disadvantages: Not all foreign national mortgage lenders accept these platforms as a source of funds without additional documentation. Verify with your loan originator before using this method.
• Required documentation: Platform confirmation, proof that the source was your personal bank account (not third-party funds), bank statement of the receiving account showing the credit.

3. Physical Cash

It is legal to bring up to $10,000 USD in cash into or out of the United States without declaring it. Amounts above that must be declared to customs (FinCEN Form 105). However, physical cash is unacceptable as a source of funds for mortgages because it has no documentary trail of origin. Cash must be deposited into a bank account and remain there long enough to satisfy seasoning requirements before it can be used.

4. Pre-Existing US Accounts

If you already have a US bank account (many Latin American buyers have accounts at banks like Bank of America, Wells Fargo, or international banks like HSBC or Citibank), funds that have been on deposit there for 60 to 90 days automatically qualify as seasoned funds for the mortgage. This is the simplest option when available.

Currency Exchange Considerations

Buying in dollars from a country with a local currency means you must actively manage currency risk. Exchange rate fluctuations can significantly affect the real cost of your property.

• Plan ahead: If your purchase contract is in dollars and your savings are in local currency, a devaluation of your currency between signing the contract and closing can significantly increase the effective cost of your property.
• Convert to dollars early: Once you have clarity on the amount you need, consider converting to dollars ahead of schedule to eliminate currency risk. Funds in dollars in a bank account also simplify lender documentation.
• Compare exchange rates: Commercial banks typically offer less favorable exchange rates than specialized platforms. For large amounts (down payment plus closing costs often exceed $100,000 USD), even a 0.5% difference in the exchange rate represents $500 per $100,000.
• Consider a forward contract: For future purchases, some currency brokers offer the ability to lock in an exchange rate today for a future transaction, eliminating currency uncertainty.

Country-Specific Restrictions

Some Latin American countries have currency controls or legal restrictions on capital outflows that significantly complicate sending money abroad. Understanding your country's rules before planning your transaction is essential.

Argentina: The "Cepo Cambiario"

Argentina has one of the most complex currency control regimes in the region, known as the "cepo cambiario." Argentine residents face severe restrictions accessing official dollars and transferring foreign exchange abroad. Buyers from Argentina typically need to:

• Use funds already held outside the country in international accounts.
• Demonstrate the legal origin of those offshore funds.
• In some cases, funds come from the sale of a previous property in the United States or another country with free capital movement.

Argentina's currency situation changes frequently. Always consult with a legal and financial advisor in Argentina before planning your fund logistics.

Venezuela: Strict Capital Controls

Buyers from Venezuela face the strictest capital controls in the region. Most Venezuelan buyers acquiring properties in Florida have funds already established in accounts outside Venezuela, frequently in the United States, Panama, Spain, or Colombia. Documentation of the origin of those funds is especially important given the additional scrutiny that Venezuelan transactions may receive from mortgage underwriters in the United States.

Brazil: The IOF Tax

Brazil applies the Imposto sobre Operações Financeiras (IOF) — a financial operations tax — to foreign currency remittances. The rate can vary depending on the declared purpose of the transfer. For transfers intended for property purchases abroad, the IOF rate may differ from personal remittances. Buyers from Brazil should:

• Consult with their bank in Brazil about the applicable IOF rate for their specific transfer.
• Correctly declare the purpose of the transfer (purchase of real property abroad).
• Retain all documentation from the Banco Central do Brasil related to the currency operation, as it may be requested by both the US lender and Brazilian tax authorities.
• Ensure the transfer is correctly declared to the Receita Federal to avoid future tax issues.

Colombia: Relatively Accessible Process

Buyers from Colombia generally have more fluid access to the currency market. However, foreign currency transfers must be channeled through the official exchange market and declared to the Banco de la República. Documentation of these declarations (foreign exchange forms) may be requested by the US lender as part of the source-of-funds verification.

Mexico: SPEI and International Transfers

Buyers from Mexico can make international transfers through major Mexican banks. The SAT (Tax Administration Service) may require declaration of foreign assets if they exceed certain thresholds. Mexican tax documentation, including annual SAT declarations, frequently forms part of the mortgage documentation package.

Anti-Money Laundering (AML) Compliance in Mortgages

US mortgages are regulated under very strict federal anti-money laundering laws, including the Bank Secrecy Act (BSA) and the USA PATRIOT Act. Mortgage lenders are required to verify the origin of all funds and report suspicious activities.

What this means for you as an international buyer:

• Every dollar must have a history: The mortgage underwriter will review bank statements for the last 2 to 3 months of all accounts you will use for closing. Any deposit that is not payroll or a known recurring transfer will require a documented explanation.
• Large deposits need a letter of explanation: An unusually large deposit (typically more than 25% of the account's average balance) within the seasoning window will require a Letter of Explanation and documentation of the money's origin (asset sale, inheritance, work bonus, etc.).
• Third-party funds require a gift letter: If part of your down payment comes from a family member, it may qualify as gift funds but requires a formal gift letter declaring the money will not be repaid, the donor's identification, and documentation of their financial ability to make the gift.
• Funds from anonymous sources are not accepted: Cryptocurrencies, transfers from unidentified entities, or funds of unverifiable origin are not accepted by mortgage lenders under any circumstances.

The Documentary Trail You Need

For your funds to be accepted without objection by the lender, you need to be able to document every step of the money's path from its origin to the account you will use at closing. This is called the "paper trail."

Typically Required Documents

1. Bank statements (last 2–3 months): From all accounts that will participate in the closing, both in your home country and in the US. They must show the account holder's name, account number, balance, and complete transaction history.
2. Wire transfer confirmation: The official receipt issued by the sending bank when the money was sent, including the SWIFT reference number.
3. Receiving bank statement: Showing the credit of the international transfer with the same date and amount as shown in the sending bank's confirmation.
4. Source-of-funds documentation: Depending on how you accumulated the money: historical account statements showing gradual accumulation, a sale letter for a previous property, documentation of investment liquidation, inheritance letter with will, etc.
5. Affidavit of source of funds: Some lenders request a notarized letter declaring that the funds are of lawful origin and briefly describing their provenance.
6. Currency exchange documentation: Proof of the currency exchange transaction (conversion of local currency to dollars) issued by the bank or exchange house.

Common Mistakes That Cause Delays

After closing dozens of mortgages for Latin American buyers, we have identified the most frequent mistakes that delay closing or put approval at risk:

• Moving money right before closing: Wiring the down payment from your home country the week before closing is the most costly mistake. The receiving bank needs time to credit the funds, and the lender needs time to verify them. Plan for funds to be in the closing account at least 10 business days before the scheduled date.
• Incomplete bank statements: Statements downloaded from online banking that do not show the bank name, full account number, or the time period covered are frequently rejected by underwriters. Request certified bank statements directly from your bank whenever possible.
• Cash deposits without documentation: Any cash deposit in your bank account within the last 90 days will require documentation of origin. If you deposited cash from selling a car, you need the purchase contract. If it was rental income, you need the lease agreement and receipts.
• Funds in joint or business accounts: If part of your funds are in accounts shared with a spouse, business partners, or companies, the lender will want documentation of each person's right to those funds and the origin of all deposits.
• Not notifying your bank about the transfer: Many banks — both in Latin America and the US — block large international transfers if they have not been pre-authorized. Notify both banks in advance and obtain the correct routing information for the destination account.
• Underestimating transfer fees: Correspondent banks in the SWIFT process may deduct fees from the transfer, resulting in a slightly lower amount received than sent. To avoid problems, always send a bit more than needed or pay the fees separately.

Recommended Steps: A Practical Timeline

1. 90 days before closing: Consolidate all your funds in the accounts you will use. If funds are spread across multiple countries or accounts, start consolidating now to maximize the seasoning period.
2. 75 days before closing: Obtain updated bank statements and verify that the history is clear and traceable. Identify any deposits that may require explanation and start gathering that documentation.
3. 60 days before closing: If you need to convert local currency to dollars, do it now to take full advantage of the seasoning window in the destination account. Compare exchange rates between your bank and specialized platforms.
4. 30 days before closing: Confirm with your mortgage agent the exact amount you need to transfer (down payment + closing costs + reserves). Notify both banks about the pending transfer.
5. 15 days before closing: Execute the main transfer. Confirm receipt with the destination bank. Gather all transfer documentation.
6. 10 days before closing: Submit all funds documentation to your loan originator for final review before closing.

Conclusion: Preparation Is Your Best Tool

Sending money from Latin America to buy property in the United States is entirely possible and we do it successfully for our clients regularly. The key is early preparation and meticulous documentation. Lenders are not trying to make your life difficult — they are complying with mandatory federal regulations. When you arrive prepared with the correct documentary trail, the process flows smoothly.

If you have specific questions about your situation — whether you are coming from Colombia, Argentina, Venezuela, Brazil, Mexico, or any other country — our team is available to guide you. We have navigated this process with buyers from dozens of countries and understand the particularities of each.

Contact us today: (954) 663-3619 or visit us at global.homefg.com.

Medardo F. Cevallos, NMLS# 305965 — Home Financial Group LLC, NMLS# 305389 — Oakland Park, FL