You don't need to be flush with cash to buy your retirement dream home in Nicaragua.
More and more financing opportunities are becoming available.
Historically,real estate sales in Nicaragua have been completed as cash only transactions.
However, as the investment market matures various financing options have been developed.
It is possible to secure financing from some of the more prominent Nicaraguan banks such as BAC, BDF and Bancentro.
Qualified buyers can access loans of generally up to 80-95 % of the total purchase price.
Although interest rates have become more competitive they are still in the range of 9-12% amortized over 10 years with an option to extend amortization by 5 years in certain cases.
A gradually increasing number of developments are also offering developer financing.
Some developers will offer short term (generally 5-7 years)financing at very attractive rates with no pre-payment penalties.
For example, one Golf and Surf Development on the Southern Pacific Coastis currently offering a 2 year financing option at 2.
9% with a 50% down payment.
Other nearby developments are offering 7 year financing at 8% with a 30% down payment.
Another beach condominium project is offering 15 year financing at 9%.
The terms of developer financing vary from development to development and can be negotiated.
Further still, some developments have arrangements with specific American style mortgage brokers to arrange longer term financing.
This type of financing option offers longer termfinancing on competitive terms.
The terms of this type of financing are similar to the terms historically offered by American or Canadian banks.
Lastly and least common financing arrangements are akin to private vendor take back mortgages.
Although these types of arrangements do exist they are relatively uncommon.
The financing options coupled with Nicaragua's already attractive property prices and low cost of living make investing in Nicaragua Real Estate more attractive than ever.
For more information on financing your Nicaragua real estate retirement dream home please click financing Nicaragua real estate.