Getting a Mortgage in Nicaragua as a Foreigner
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Interested in buying property in Nicaragua? As of 2018 Nicaraguan banks are extending financing, allowing qualified foreign buyers to get mortgages in Nicaragua. Now Americans, Canadians, Europeans and Australians with good credit in their home countries can apply. The minimum down payment is generally 20%, and term lengths of up to 25 years are available.
The current interest rates in Nicaragua as of February 2018 are between 8.5 and 9.5%. So if it's possible for you to get home country financing, doing so would likely save you money. If you need in- country credit, however, the two banks that are offering financing are Banpro and Banco Lafise Bancentro.
Both banks require a similar list of documents in order to apply for financing.
Personal documents required:
Passport photo copies
Copy of birth certificate
Three years of income tax / IRS reports
Credit report (Transunion or Equifax)
Three months of credit card statements
Three months of bank statements
Employment letter (if applicable)
The Process:
It is easiest to apply for a mortgage if the property is being built by one of the more reputable developers. An excellent example is the El Cielo development from renowned developer Roger Valerio. If buying from such a developer, they will help coordinate purchase documents and make the process much easier than if you are buying an existing home.
Documents for the property:
Copy of the property title
Registral history of the Property since 1977
Certificate of liens. (Libertad de Gravamen)
Evidence of property tax payment. (Solvencia Municipal)
The banks will arrange and initial meeting to discuss your needs and resources. Then they will request all the above documents. Additional documentation and meetings will be required as necessary based on your individual circumstances. Generally you will be approved within six weeks if applying at Banco Lafise Bancentro. The management at Banpro tends to take longer. If you are in San Juan Del Sur the best bank manager is Carlo Noguera at Banco Lafise Bancentro.
Want a call or message to discuss your options? Contact me any of the following ways and I will get back to you as soon as possible to chat about it. Happy house hunting!
The author is an agent with Century 21 / Nica Life Realty in San Juan Del Sur. Originally from Alberta, Canada he has been doing business in Nicaragua since 2014. A serial entrepreneur, surfer, and outdoor enthusiast he is an expert on both the real estate and investment markets in Nicaragua. Thanks to his lovely Nicaraguan wife, a medical doctor, he is also well informed on health care services in the country.
Contact Information:
Joel Stott-Jess
Century 21 / Nica Life Realty
San Juan Del Sur
(+505) 8176 8624
skype: joel.stott.jess
Instagram: jstottjess
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