Dallas Auditor .com

Nicaragua vacation homes are more affordable than you would think. Each day brings more exciting financing opportunities to the market place.

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 to secure financing from some of the more prominent and reputable Nicaraguan banks such as BDF, Bancentro and BAC. Qualified buyers with the right documentation can access loans of up to 80-95 % of the total purchase price. Although interest rates are becoming more competitive they still float in the range of 9-12% per annum amortized over 10 years. Most mortgages contain an option to extend the amortization by another five 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 even offer another very familiar option. These developers have relationships with American style mortgage brokers. This type of American- style financing offers a longer term. The terms of interest related to these loans tend to be similar to those in the States which are very low right now.

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.

People who never thought it would be possible are buying Nicaraguan vacation homes. Financial assistance in achieving your dream is now available. New financing options have opened the door to real estate in Nicaragua.