In Nicaragua two microfinancers will provide short-term loans for progressive housing construction.
The Microfinance companies which up until now have focused on short-term loans to individuals and microenterprises outside of the banking system, will begin to break into the housing market, offering loans for home improvement and construction.
Elnuevodiario.com.ni reports that "...The Nicaraguan Association of Microfinance Institutions, Asomif; the Central American and Caribbean Network for Microfinance, Redcamif, and the organization ADA from Luxembourg selected on Friday two microfinancers in the country that will provide housing loans. "
The recently approved amendment to the Housing Act provides a subsidy of 2.5% in the interest rate for mortgage loans that are not greater than $32,000.
Responding to industry demands and seeking to motivate the new housing market, the recently approved reform also provides, as well as the subsidy, that any bank can apply the exemption of 15% from Value Added Tax (VAT) for mortgage loans with this same ceiling rate.
Although during the first six months of 2013 building permits decreased by 18% compared to 2012, residential investment grew by 27%.
The town of Juan Diaz had the strongest growth with 24% of total investments in the district of Panama. Standing out the most in this area was the construction of houses, apartment buildings, businesses and other things.
In Panama, preferential interest has been extended to projects whose value is not greater than $80 000, where previously they could not exceed $65,000.
From a press release from the National Government of Panama:
With the aim of encouraging housing construction and maintaining the momentum of investment in infrastructure needed to alleviate the demand for housing and allowing more Panamanians to have access to these projects, President Ricardo Martinelli has passed Act 63 amending preferential interest rate loans.
Up to June banks had only provided financing for housing projects worth $14.36 million, while in the same period last year it had already reached $32 million.
"The new housing projects can be counted on the fingers of one hand," said the executive director of the Salvadoran Chamber of Construction Industry (Casalco), Ismael Nolasco, adding that the drop is a reflection of an industry that is not investing in large housing projects because it has seen any demand.
The Panamanian Congress is debating a bill which would raise the ceiling for home purchase loans with preferential interest rates of 4% to $80,000 .
From a press release issued by the Ministry of Economy and Finance in Panama:
The law, which amends the second tranche of preferential interest rates for home loans home valued at an amount of between $40,000 to $80,000, was approved in its first debate in the Committee of Economy and Finance of the National Assembly.
The new law eliminates the minimum legal reserve amount required by the Central Bank of Costa Rica (15%) for funds destined for home loans.
The application of the new law for middle class housing signed yesterday by the Costa Rican government is in the hands of financial institutions who provide loans for house purchases, which still must consider what returns they will obtain.
Rules for providing housing to the middle class are being approved without adequate studies on their feasibility and functionality within the financial system.
Within the current drive in the search for housing solutions for the middle class sector, three projects have entered the legislative process.
Of the three projects, two have already been made law and one is awaiting approval by Congress in the second debate.
The Costa Rican Congress is looking at a law for funding homes valued at less than $150 thousand, for families whose incomes are not above $4000.
This plan "... seeks to provide a housing solution through loans to be granted by public banking entities, mutuals and private banks to enable people to get credit and buy a plot of land, a house or to build on their own lot," noted an article in Elfinancierocr.com.
Costa Rica's Congress has approved a bill that seeks to exempt deposits used to finance long term housing loans from requiring a minimum legal reserved amount.
From a press release by the Legislative Assembly of Costa Rica:
The plenary legislature passed on its second and final debate with the support of 23 MPs bill number 17809, addition to Law No. 7558, the Law on the Central Bank of Costa Rica, to exempt from requiring minimum reserve amounts, deposits and revenues used to finance long term housing loans .
An amendment has been made to Act 3 of March 1985, which establishes a preferential interest rate system on mortgages, increasing the limit of the first band from $35,000 to $40,000.
From a press release issued by the Ministry of Economy and Finance (MEF) of Panama:
The Bill No. 567, amending an article of Act 3 of 1985, which establishes a preferential interest in certain mortgage loans and modifies the first band for preferential interest loans, from $35,000 to $ 40,000, was approved on its third reading by the plenary of the National Assembly, said the Minister of Economy and Finance, Frank De Lima.
The Social Housing Fund (Fondo Social para la Vivienda) in El Salvador will keep the interest rate for social housing construction at 6%.
Francisco Guevara, president of the Social Housing Fund (FSV by its initials in Spanish), explained that this was because the housing supply was less than expected due to red tape delays.
"Some housing projects suffered from lack of technical documents which were in the process of being drawn up, or awaiting inscription in the National Registry. This halted three projects", said Guevara.
The Social Housing Fund plans to provide $46 million in for housing construction, and another $44 million for purchasing a used house.
According to an article in Elmundo.com.sv this year, the Social Housing Fund (FSV) "expects to increase lending both for new and used housing. In addition, it will reinforce credit for Salvadorans abroad and other lines of financing they offer. "
The number of active loans for house purchase up to September has increased by 3.4% compared to the same period in 2011.
During the same period, according to the Panamanian Credit Association (APC) the balance of the mortgage portfolio also reported a growth of 15.4% compared with 2011.
An article in Panamaamerica.com.pa quotes Luz Maria Salamis, CEO of the APC who said, "...
In order to address issues related to urban development and housing finance, a meeting will take place of bankers, developers and city officials, from 3 to 5 December, in Lima, Peru.
A statement of the Guatemalan Chamber of Construction reads:
The Inter-American Housing Union (UNIAPRAVI) in conjunction with the Ministry of Housing, Construction and Sanitation of Peru the fund MIVIVIENDA SA and the Peruvian Chamber of Construction will hold in the city of Lima, Peru, from 3 to 5 December 2012 the III Inter-City Forum on Housing Finance.