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Financing The Purchase Of Real Estate Overseas

“Kathleen, thanks for all of your wonderful info! My question is about buying homes in other countries. Is it always necessary to have cash to buy a home in other countries or is there financing available in any? If so, is there a list anywhere of which countries where this is possible?

“Thanks again!”

–Ronnie S., United States

Formal financing options are limited outside North America. It’s possible for a foreigner to borrow in Europe and in some places in Central America (including Panama, Mexico, and Belize); however, the terms aren’t going to be what you’re used to in the States. You won’t be able to borrow 100% LTV; you won’t get a fixed rate of interest; and the term of the loan might be 15 or 20 years, not 25 or 30. Also, in Central America, the rate of interest will be much higher than you’ll expect, perhaps in the double digits.

I include a list of financing options overseas, including formal bank lending options and also informal developer and seller financing, in my new book, “How To Buy Real Estate Overseas.” The appendix details financing particulars for the 25 markets featured.

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