Housing Finance Policy

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    A. Legal and Regulatory Framework

    A.1 Legal and Regulatory Framework
    VariableEnd of 2015End of 2014End of 2013SourcesVar ID
    Basis of the legal system: Civil, Common, Islamic, Other? (Describe)Civil LawCivil LawCivil LawA.1.1
    Registration/Transfer of titles:A.1.3
    Does the law clearly define different types of property rights?YesYesYesA.1.3.1
    Typical number of days needed for the transfer of title585858
    WDI
    		A.1.3.4
    Are there legal constraints on mortgage features?YesYesYesA.1.6
    Interest rate capsYesYesYesA.1.6.1
    Is there specialized legislation covering:A.1.9
    B. Housing Finance Subsidies
    B.1 Subsidies to Housing Finance Institutions
    VariableEnd of 2015End of 2014End of 2013SourcesVar ID
    Are there subsidized funding sources for mortgage lenders?YesYesYes
    IADB, 9986.html
    		B.1.1
    Is the lending side of the housing finance system subsidized?YesYes B.1.2
    OtherYesYes B.1.2.3
    B.2 Subsidies to Households
    VariableEnd of 2015End of 2014End of 2013SourcesVar ID
    Are there subsidies to households on housing finance?YesYesYesB.2.1
    Down-payment subsidies YesYesYes
    Urban and Rural Housing Institute (INVUR): http://www.invur.gob.ni/index.php/invur/objetivos
    		B.2.1.3
    OtherYesYesYes
    Urban and Rural Housing Institute (INVUR): http://www.invur.gob.ni/index.php/invur/objetivos
    		B.2.1.6
    Reach of subsidies in 2.1.1 to 2.1.4 ?B.2.2
    C. Taxation
    VariableEnd of 2015End of 2014End of 2013SourcesVar ID
    What taxes apply to Residential Real Estate?C.1
    Tax on property (home-owners) YesYes C.1.1
    Tax on capital gains on property YesYes C.1.5
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    Notes: BAC Nicaragua offers fixed interest loans at a rate of 9.5% up to 15 years.
    Notes: BAC Nicaragua offers fixed interest loans at a rate of 9.5% up to 15 years.
    Notes: Exemption of VAT on the purchase of building materials.
    Notes: Exemption of VAT on the purchase of building materials.
    Notes: Exemption of VAT on the purchase of building materials.
    Notes: Exemption of VAT on the purchase of building materials.
    Notes: Exemption of VAT on the purchase of building materials.
    Notes: FOSOVI (Fondo Social de Vivienda) provides subsidies to support housing loans to lower income families although the subsidies remain small accounting for only $4 million annually.
    Notes: IADB "approved a $10M loan to Banco de Finanzas S.A. (BDF), a leading commercial bank in Nicaragua, to finance a pilot housing project that will pave the way for low-income families working in the informal sector to get access to mortgage financing."
    Notes: IADB "approved a $10M loan to Banco de Finanzas S.A. (BDF), a leading commercial bank in Nicaragua, to finance a pilot housing project that will pave the way for low-income families working in the informal sector to get access to mortgage financing."
    Notes: IADB "approved a $10M loan to Banco de Finanzas S.A. (BDF), a leading commercial bank in Nicaragua, to finance a pilot housing project that will pave the way for low-income families working in the informal sector to get access to mortgage financing."
    Notes: IADB "approved a $10M loan to Banco de Finanzas S.A. (BDF), a leading commercial bank in Nicaragua, to finance a pilot housing project that will pave the way for low-income families working in the informal sector to get access to mortgage financing."
    Notes: Lenders who provide the preferential interest rate subsidy for mortgages will be granted a tax credit equivalent to subsidy.
    Notes: Lenders who provide the preferential interest rate subsidy for mortgages will be granted a tax credit equivalent to subsidy.
    Notes: National Percentage. This number includes only owners with deeds, if owners without deeds in the informal housing market are included the owner-occupied rate rises to 84.42%
    Notes: One-time grant of $1500 USD.
    Notes: One-time grant of $1500 USD.
    Notes: One-time grant of $1500 USD.
    Notes: Preferential interest rate subsidy of up to 3.5% on the interest rate for up to 10 years on a mortgage loan that does not exceed $32,000.
    Notes: Preferential interest rate subsidy of up to 3.5% on the interest rate for up to 10 years on a mortgage loan that does not exceed $32,000.
    Notes: Tabla VII-6