Can You Get Financing in Roatan? Cash vs. Owner Financing vs. Bank Loans

One of the most common questions foreign buyers ask when considering property in Roatan is: “Do I need to pay cash, or can I get a mortgage?” The answer: most real estate transactions are cash-based, but some bank financing and owner financing options do exist. This guide reflects what is known as of mid-2025, with verified bank info and practical advice.

Expectation for North American buyers: Local bank mortgages are rare for non‑Hondurans. Most go with cash, seller take‑back terms, or equity leveraged at home. If a bank route is attempted, plan for extra time and potential HNL→USD payout logistics.

Broker’s note — Margot Halliday

• North American buyers rarely obtain local bank mortgages; most use cash, seller take‑back terms, or equity leveraged at home.

• Private financing is available but typically expensive, so clients seldom choose it.

• Ficohsa is currently the most approachable bank, but banks cycle in aggressiveness over time.

• Bank payouts are typically in HNL; USD payouts are possible but can add a 2–3 week delay to closing.

• Banks actively lend to Hondurans and some regional buyers.

• Recent deal pattern: ~60% down, ~2.5‑year term, ~6% interest on seller financing.

Why Most Purchases Are Cash

Foreign buyers in Roatan often purchase properties outright. This is partly because local banks have stricter requirements for non-residents and partly because cash deals are faster and more attractive to sellers. If you’re planning a purchase, it’s smart to prepare for a cash transaction unless you already know financing is available to you.

Owner Financing

Some sellers in Roatan offer financing directly to buyers. This can be a flexible and appealing option, especially if you want to spread payments over a few years without dealing with banks.

Typical terms:

• Down payment: 30–50% of the purchase price

• Interest rates: 6–10% annually

• Repayment period: 2–5 years

Early payoff: Many agreements allow you to pay off the balance early without penalty, though terms vary. Always confirm this in writing.

Negotiation tips: Be upfront with sellers about your interest in owner financing. Typical negotiable points include the down payment percentage, repayment period, and interest rate.

Owner financing agreements should always be drafted and reviewed by an attorney to protect both parties.

Local Bank Financing

For non‑Honduran buyers, true local bank mortgages are uncommon. Recent on‑the‑ground experience from brokers indicates that North American buyers almost never secure bank loans locally; when financing is used, it is usually a seller take‑back or private terms.

That said, local banks do actively lend to Hondurans and some regional buyers. Banks also go through cycles where one is more approachable than others. At the moment, Ficohsa is considered the most approachable, though this changes over time. Payouts are typically made in Honduran lempiras; USD payouts are possible but can add a 2–3 week delay, which some sellers are reluctant to accept.

What this means if you are not Honduran

• Expect seller financing or cash to be the primary paths.

• Private financing exists but is usually expensive and rarely chosen by buyers.

• If a bank route is pursued, plan for longer timelines and possible currency logistics (HNL vs. USD) at closing.

What this means if you are Honduran (or regional)

• Banks take turns being the most aggressive with lending; currently, Ficohsa is viewed as more approachable.

• Standard bank requirements still apply (income verification, title review, insurance), and timelines can be extended by underwriting and registration steps.

Historically referenced programs (for context)

• Banco Atlántida has offered home loans for purchase, construction, and land.

• BAC Credomatic has offered residential credit products with income and documentation requirements.

Use these program references as context rather than promises; availability and criteria change, and foreign buyers should not assume eligibility.

International Financing

Some buyers explore financing through banks or lenders in their home country. While rare, this may be possible if you have strong assets or equity to leverage. In many cases, buyers use a home equity line of credit (HELOC) or refinance an existing property at home to fund their Roatan purchase.

Currency Risk

If your loan is issued in Honduran lempira but your income is in U.S. or Canadian dollars, exchange rate fluctuations could increase your effective monthly payments. Most foreign buyers prefer loans in U.S. dollars to reduce this risk.

Real Payment Scenarios

• Owner Financing Example: On a $300,000 property, with $150,000 down and $150,000 financed at 8% over 3 years, monthly payments are about $5,240.

• Seller Financing (per recent deals): On a $300,000 property, with 60% down ($180,000) and $120,000 financed at ~6% over ~2.5 years (30 months), monthly payments are about $4,310. Terms vary by seller; always confirm specifics in writing.[1]

Closing costs: On a $200,000 property, expect about $10,000–$14,000 in closing costs, which includes attorney fees, transfer taxes, registration, and corporation setup if required.

Property taxes: Rates vary by municipality. For example, in West End, taxes are roughly $4.20 per $1,000 of value ($420 annually on a $100,000 property). On the East End, the rate is about $2.50 per $1,000 ($250 annually on a $100,000 property).

Pros & Cons of Each Option

Decision-Making Guide

• Do you have full funds available? → Cash purchase

• Do you want flexibility and are open to negotiating terms? → Owner financing

• Do you prefer longer repayment timelines and can meet strict requirements? → Local bank loan

• Do you have equity at home to leverage? → International financing

Timeline Comparison

• Cash purchase: 30–60 days

• Owner financing: 30–60 days (similar to cash, slightly longer for contract drafting)

• Local bank loan: 60–90+ days (due to approvals and documentation)

• International financing: Varies, often 60–120 days

Risks & Red Flags

• Owner financing: Avoid vague terms or handshake deals; always have a written contract.

• Bank loans: Watch for variable interest rates without caps.

• Currency loans: Understand exchange rate risks before signing.

• Hidden costs: Ask lenders and sellers for full written breakdowns.

Legal protection: Always have an attorney review financing agreements and consider title insurance for extra security.

Market Context

Compared to other Caribbean markets, Roatan’s financing landscape is less developed. In places like the Cayman Islands or the Bahamas, foreigners can access mortgages more easily (though at higher tax costs). Roatan stands out for its combination of low property taxes and more limited but still possible financing.

Recent changes: Post-COVID, owner financing has become more common as sellers adapt to market realities. Bank loans remain available but with tighter scrutiny.

Success rates: The majority of foreign buyers (over 70%) still purchase in cash. Owner financing accounts for a notable minority, while only a small percentage secure local bank loans.

Final Thoughts

Financing in Roatan is possible, but it looks different than in the U.S. or Canada. Most foreign buyers lean toward cash or owner financing, with local bank loans as a more challenging but sometimes viable option. The key is to align your financing strategy with your budget, your timeline, and your long-term goals.

👉 Ready to explore properties that match your budget? Browse the latest listings at RoatanRealEstate.com/properties or reach out to Margot Halliday for guidance on navigating financing options in Roatan.