This study employs data from the 1993-94 Hispanic Established Population for Epidemiological Studies of the Elderly (H-EPESE) to assess the impact of nativity on preferences in living arrangements for a sample of 3,046 Mexican American individuals over the age of 65. Our results reveal great differences between the native and foreign-born in their desire to live with their children. A larger fraction of the foreign-born than native-born currently live with their children and state that they would care to continue living with their children in the event that they could no longer care for themselves. The data also reveal that the foreign-born face more serious economic constraints than the native-born and suggest that living with children may be motivated in part by economic need. We end by speculating on the implications of these findings for community-based care for elderly Mexican Americans.