Finance Nicaragua 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 Central American real estate market for vacation homes has been growing by leaps and bounds over the past decade. The landscape is exceptionally beautiful and the land values are almost too good to be true. Nicaragua boasts great hiking and bird watching. The sport fishing and surfing are unparalleled. It is the land of lakes, rivers, rain forests, volcanoes, artisan markets and coffee farms. Nicaraguan vacation homes have really become popular amongst those seeking a perfect getaway or for those retiring Americans looking for an inexpensive place to live and relax. Historically, the only drawback with Nicaragua real estate was that most deals were completed on a cash only basis.
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.
Multiple resort developments are offering developer financing. This type of financing can provide the savvy purchaser with a great deal. For example, a brand new beach condominium project within walking distance of the shops and bars and restaurants of San Juan del Sur is offering 15 year financing at 9% interest. This development is upscale and located right on the beach. Other nearby developments are offering 7 year financing on condos, ocean view lots and completed houses at 8% with a 30% down payment. Even if it is not advertised you should ask about developer financing.
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 means by which to finance your Nicaragua vacation home is a private vendor take back mortgage. Although less common, it can be worth asking about. These days there are an increasing number of real estate deals to be had using this method of financing. Vendors know that the North American credit market has become very tight and this might be the fastest way to sell their Nicaragua real estate.
The increased number of financing options on the market today have made Nicaragua real estate more attractive than ever. These options coupled with Nicaragua\’s already low property prices and low cost of living make investing in Nicaragua Real Estate more attractive than ever. Financing your Nicaragua vacation home has never been easier.
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