Affordable Homes and Mortgages for Nicaraguans
Low-income and self-employed Nicaraguans face two serious obstacles when looking to buy a home: a shortage of affordable housing, and difficulty in obtaining a mortgage.An innovative model is bringing both homeownership and financing within reach of Nicaraguans at the base of the pyramid. The Rent-to-Own Housing Program allows prospective buyers to rent the newly built housing unit they'd like to buy, and to use their track record of monthly rent payments to build a formal credit history and qualify for a mortgage. The Inter-American Development Bank's Opportunities for the Majority Initiative (OMJ) is offering a senior secured loan for up to $5 million to Banco de Finanzas S.A (BDF) Nicaragua to support the pilot rental and mortgage loan program. If successful, IDB will lend another $5 million to scale up the model.
| Main Author: | |
|---|---|
| Other Authors: | |
| Format: | Catalogs & Brochures biblioteca |
| Language: | English |
| Published: |
Inter-American Development Bank
|
| Subjects: | Housing Finance, OMJ, |
| Online Access: | http://dx.doi.org/10.18235/0006000 https://publications.iadb.org/en/affordable-homes-and-mortgages-nicaraguans |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | Low-income and self-employed Nicaraguans face two serious obstacles when looking to buy a home: a shortage of affordable housing, and difficulty in obtaining a mortgage.An innovative model is bringing both homeownership and financing within reach of Nicaraguans at the base of the pyramid. The Rent-to-Own Housing Program allows prospective buyers to rent the newly built housing unit they'd like to buy, and to use their track record of monthly rent payments to build a formal credit history and qualify for a mortgage. The Inter-American Development Bank's Opportunities for the Majority Initiative (OMJ) is offering a senior secured loan for up to $5 million to Banco de Finanzas S.A (BDF) Nicaragua to support the pilot rental and mortgage loan program. If successful, IDB will lend another $5 million to scale up the model. |
|---|