Financing in Nicaragua?

Are you looking to buy a piece of property in Nicaragua and not sure if Financing is an option for you? Well, there are many ways to look into financing in Nicaragua. Among the multitude of options, the most common in Nicaragua are Bank Loans and Home Owner Held Short Term Finance Deals.

Bank Loans and Mortgages

In Nicaragua, bank loans have been a way of life. It was common practice to get bank loans for agricultural and commercial endeavors but these were normally paid off with the year. Mortgages on the other hand, are a fairly new practice. The banks began providing mortgages to the general public only in the mid 1990’s.  Only after the country created and implemented the first National ID known locally as “Cedula”.

In order for a Mortgage to come to fruition, two revisions must happen:

  1. The bank must review and pre approve a property for a mortgage. This process requires having number of legal documents drawn up and handed over to the bank within a certain number fo days. Once these documents are completed, the Banks Lawyers approve or deny the Properties ability to be mortgaged. This process takes about 2 months once all document are handed in.
  2. The bank must review and pre approve a person to hold debt to be paid long term. This is done by reviewing assets, credit scores and current debt, just like its done in the USA. This process take about 7 to 10 business days on average.

Can Foreigners Opt for a Nicaragua Based Mortgage?

Yes, anyone who is from the USA can opt for a Nicaraguan Bank based Mortgage. The review of your credit Score will be done via a US based Credit company that the bank will contact, much like banks do in the US for US Based Mortgages. This process takes on Average 4 to 5 business days.

What are Normal Mortgage Rates in Nicaragua?

Although it may sound incredible, just like many US states during the 1980’s and most countries in Central America, Nicaraguan banks provide mortgage rates in the 8.5% to 11% range, depending on the property and the mortgage holders credit score.

Can anyone opt for a Construction Loan?

If you own your lad and are only looking to get a loan for the construction of your home, you can opt for a construction loan. This loans usually require a different set of paper work, including but not limited to proper plans for the build and proper quotes from a recognized builder/contractor. These Loans are usually granted in the same range of 8.5% to 10% for the project. The loans are usually shorter term than mortgages.

Home Owner Held Short Term Finance Deals

Income cases, a Seller is willing to do Owner Held Short finance deals. Basically, this is where a Buyer wants to buy a property but needs some time to bring the money together to finalize the purchase. In these cases both Buyer and Seller must agree to terms of a contract. This contracts used in these deals can vary and depend on each parties own personal preferences.

  1. Promise of Sale Contract  “Promesa de Venta”
  2. Sales Contract with a Registered Mortgage “Compra Venta con Hipoteca Registrada”


Disclaimer* we are not lawyers. For professional advice from one of our trusted lawyers, please click here to receive a list of pre-approved Lawyers with year so experience in Real Estate.

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