Owning a home in Kenya while living abroad is a dream for many Kenyans in the diaspora. Whether you want to buy land and build from scratch or purchase an already built home, financing is a key consideration. Fortunately, there are several financing options available to make this dream a reality. This article explores the best house financing in Kenya for diaspora, including mortgages, developer financing, and investment options.
1. Diaspora Mortgages
A diaspora mortgage is a specialized home loan designed for Kenyans living abroad. Many banks and financial institutions in Kenya offer mortgage solutions tailored for the diaspora community.
Top Banks Offering Diaspora Mortgages
- NCBA Bank – Diaspora mortgage loans with flexible repayment plans.
- KCB Bank – Offers mortgages for both residential and commercial properties.
- Equity Bank – Provides financing for buying land, constructing homes, and purchasing completed properties.
- Cooperative Bank – Diaspora mortgage with repayment periods of up to 20 years.
Key Features of Diaspora Mortgages
- Loan amounts ranging from KES 1 million to KES 100 million.
- Competitive interest rates between 9% and 12%.
- Repayment periods of up to 25 years.
- Loan-to-value ratios of up to 90%.
Eligibility Requirements
- Proof of income (pay slips, tax returns, or bank statements).
- Valid Kenyan identification documents (ID or passport).
- A clean credit history.
2. Developer Financing
Real estate developers in Kenya have recognized the need for financing solutions for Kenyans abroad. Some developers offer installment payment plans that allow you to spread the cost over a defined period.
Benefits of Developer Financing
- No need for a bank loan approval.
- Flexible payment terms.
- Interest-free or low-interest payment plans.
Top Real Estate Developers Offering Financing
- Zao Construction – Offers flexible payment plans for gated community homes. Giving options house financing in Kenya for diaspora
- Optiven Group – Provides tailored financing for diaspora clients.
- Cytonn Real Estate – Offers direct purchase and installment payment options.
- Superior Homes Kenya – Provides structured financing plans for off-plan properties.
3. Sacco Loans
Many Kenyans abroad prefer saving with Saccos (Savings and Credit Cooperatives) due to their flexible and affordable loan options. Some Saccos have specific loan products for diaspora members.
Top Saccos for Diaspora Home Loans
- Kenya Diaspora Sacco – Offers home loans and investment opportunities.
- Stima Sacco – Provides affordable mortgage loans for members.
- Unaitas Sacco – Known for easy loan access and flexible repayment.
- Hazina Sacco – Offers competitive mortgage loans for the diaspora.
Advantages of Sacco Loans
- Lower interest rates compared to commercial banks.
- No need for a high credit score.
- Member-focused benefits such as dividend earnings.
4. Rent-to-Own Schemes
Rent-to-own is a great option for Kenyans abroad who want to own property without paying the full cost upfront. Under this scheme, you pay rent, and part of the rent goes towards owning the property.
How Rent-to-Own Works
- Sign an agreement with the property owner or developer.
- Pay a deposit (usually 10-30% of the property value).
- Monthly payments contribute towards the purchase price.
- Full ownership is transferred after the agreed period.
5. Investment Groups (Chamas)
Many Kenyans abroad join investment groups, also known as chamas, to pool resources and invest in real estate. Some investment groups work with developers and financial institutions to secure financing for their members.
Benefits of Chama Financing
- Shared financial burden among members.
- Ability to negotiate better property deals.
- Opportunity for members to own multiple properties collectively.
6. Alternative Financing Options
Personal Savings and Remittances
For those who have saved enough, using personal savings is a cost-effective way to finance homeownership. Additionally, sending money to trusted family members or professionals for construction can be an option, although it carries risks.
Real Estate Crowdfunding
A growing trend in Kenya, real estate crowdfunding allows multiple investors to contribute funds towards a property project, benefiting from shared ownership and rental income.
Conclusion
Owning a home in Kenya while abroad is achievable with the right financing strategy. Whether through diaspora mortgages, developer financing, Sacco loans, rent-to-own schemes, or investment groups, there are multiple ways to secure your dream home. House financing options in Kenya for diaspora.
Zao Construction offers reliable and flexible home financing solutions for Kenyans in the diaspora, making it easier for you to invest in real estate back home. Contact us today to explore how we can help you build your dream home!
FAQs
1. Can I get a mortgage in Kenya while living abroad?
Yes. Many banks in Kenya offer diaspora mortgage products tailored to Kenyans abroad.
2. What is the best Sacco for home financing in Kenya?
Some of the best Saccos for home loans include Kenya Diaspora Sacco, Stima Sacco, and Unaitas Sacco.
3. How much deposit do I need for a diaspora mortgage?
Most banks require a minimum deposit of 10-30% of the property’s value.
4. What are the risks of using family to buy property in Kenya?
The main risks include mismanagement of funds and legal disputes. It’s advisable to work with registered professionals.
5. How can I verify a property before buying while abroad?
You can hire a lawyer, engage a trusted real estate agent, or work with reputable developers like Zao Construction to ensure legitimacy.
Looking to finance your dream home in Kenya? Zao Construction provides trusted and secure financing solutions for Kenyans abroad. Get in touch with us today!
