Loans For Nicaraguan Vacation Houses

You don't need to be wealthy to buy your Nicaragua vacation house. More and more exciting financing opportunities are coming on the market.

The real estate in Nicaragua has exploded over the past decade. Retiring baby boomer have realized that Nicaragua real estate offers the same as can be found in Costa Rica but for half of the cost. Nicaraguan vacation homes have become a hot ticket. Up until recently, most real estate sales in this country have been completed as cash only transactions. However, this scenario has changed as the investment market matures and various financing options have emerged.

It is now possible for foreigners to secure bank financing in Nicaragua. This type of financing is offered by from some of the more reputable and prominent Nicaraguan banks such as BDF, Bancentro and BAC. With the proper documentation qualified buyers can access loans of up to 80-95 % of the total purchase price including closing costs. This type of financing is becoming harder and harder to get in North America. Interest rates are becoming more competitive but they are higher than most rates in North America. These rates float in the range of 9-12% per annum amortized over 10 to 15 years. Most mortgages contain an option to extend the life of the mortgage by another 5 years.

An increasing number of developments are also offering developer financing. This type of financing often provides the best deals. A handful of developers offer short term (generally 5-6 years) financing at extremely rates with no pre-payment penalties. For example, a fantastic resort on the Pacific with a golf course is currently offering a 2 year financing option at 2.9% with a 50% down payment. Other nearby developments are offering 7 year financing on condos, completed home and ocean view lots at 8% with a 30% down payment. Another brand new beach condominium project within walking distance of the village of San Juan del Sur is offering 15 year financing at 9%. The terms of developer financing vary from development to development and are open to negotiation.

Some of the bigger developments have specific arrangements with American style mortgage brokers. You actually apply for financial assistance from an American bank. This type of financing option offers longer term financing deals on very competitive terms and at very generous interest rates. With this type of financing you feel as though you are buying in the US or Canada.

The least common but still available means by which to finance your Nicaragua vacation home is akin to private vendor take back mortgages. These days there are an increasing number of opportunities using this method of financing. Vendors know that the credit market has dried up and this might be the only way they can sell their home.

Financial assistance in buying your Nicaragua vacation home is now available. These financing options have made Nicaragua real estate more attractive than ever. These options coupled with Nicaragua's low cost of living make investing in Nicaragua Real Estate more interesting than ever before. Financing your Nicaragua vacation is now a real possibility.

Learn more information on retiring in nicaragua and learn how to buy real estate in Nicaragua.