Guatemala: How to get mortgage financing for foreigners

Buying Guatemala real estate has generally always been a cash proposition, as most banks were concerned that they would have no legal recourse available should a foreigner default on their mortgage and leave the country. As more and more foreigners seek financing, brokers have managed to make arrangements with several of Guatemala’s larger banks to provide funding.

Thursday, April 17, 2008

required to receive financing

To counter concerns of default, the banks ask for a minimum down payment of 35% to 40% of the purchase value backed by an appraisal. In addition, there are several requirements that the home buyer must provide:

More on this topic

Real Estate Sector Takes Advantage of Preferential Interest Rates

November 2013

In Panama the scheme which provides financing with preferential interest rates is a major factor in the growth of mortgage loans.

With the enactment of Act 3 of 1985, which established a system of interest rates in certain mortgage loans, residential mortgage financing has shown good performance. It has also supported the construction sector as a way to reduce the housing deficit in the country.

El Salvador Ratifies Regional Mortgages

April 2012

The Legislative has ratified a Treaty for the Establishment and Implementation of Central American Mortgages signed between Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Panama and the Dominican Republic.

From a press release from the Legislative Assembly of El Salvador:

Home Loan Conditions More Flexible

June 2009

In El Salvador, clients of the Social Home Fund (FSV) have more buying power as they become exempt from some requirements.

One the requirements that changed was the elimination of the credit authorization agreement for those who can provide a minimum of 30% as a down payment.

Business increases in Guanacaste, Costa Rica

April 2008

Although construction of residences and hotels has been the leader in real estate growth in Guanacaste, commercial buildings that spring up as a complement to the residential development are not far behind.

In 2007 building permits for 347,184 square meters were solicited, almost 80 per cent more than in 2006.

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