It is not impossible for expats to receive a mortgage but it will almost definitely be more tedious and require more paperwork than it would for Nicaraguans.
You may be asked (especially from US citizens) to present your tax filings for the past two years. You can usually only receive financing for titled properties where improvements have been made, with existing infrastructure and which are located in a developing area. Banks will ask for a down payment, which is usually 20% of the assessed value of the house. The bank will loan you the other 80% and will give you around 15 to 25 years to pay this off.
You may also need a local consigner, as someone who would step up in case you don’t follow through with payments. Furthermore, interest rates are pretty high in Nicaragua, ranging from 9% to 11.5% depending on the type of property.
It is advised to use international banks such as Remax, Coldwell Banker and Century 21, which can be found in most of the main towns such as San Juan del Sur.
Nicaraguan banks will request quite a great deal of documentation to prove your income and the value of the property you want to buy:
- Copy of your passport, including all pages with stamps
- Copy of an additional photo ID
- Utility bill with name and address
- Two bank reference letters
- Two commercial reference letters
- Tax returns from the last two years
- Letter explaining your income sources & reason for the purchase
- Appraisal of the property
- Purchase contract
- Title deed of the property
- Mortgage application