If you’ve been looking at the cash markets of San Juan del Sur & Tola to buy property, you’ve probably wondered how to buy real estate with financing in Nicaragua. Unfortunately, traditional bank financing is not currently available in these markets. However, some sellers will entertain offers with an owner financing structure on a case-by-case basis.
Owner financing is when a buyer pays a portion of the purchase price as a down payment to the seller, takes possession of the property, and then pays the remaining balance to the seller over a mutually agreed-upon time. In this case, the seller acts as the bank and will typically keep the title in their name until the total balance is paid, although the buyer has physical possession of the property.
So if you have been wondering how to buy real estate with financing in Nicaragua, we’ve created an excellent tool for you: our Owner Financing Calculator.
You can use this calculator to gauge your spending power by entering your initial downpayment amount, what you can pay monthly toward the remaining balance and the term length. Offers with a term length of 12 months or less have the highest probability of being accepted. A formal offer with an earnest funds deposit will need to be presented to see if a seller is willing to provide owner financing. Learn more about the buying process in our First Time Buyer’s Guide.
As mentioned in our latest market update, the last two years have seen high sales, and inventory is very low. Due to that, owner financing is not as widely accepted as in previous years when properties spent more time on the market. Owner financing offers with a minimum downpayment of 50% with 12 months to pay the balance have the highest probability of success. As the downpayment amount decreases below 50% and the term length to pay increases over 12 months, the likelihood of an owner entertaining the offer dramatically reduces.