A Nicaraguan border town in the lowlands near the coast and not much more attractive than El Amatillo [1] on the Salvadoran side, Guasaule is easier and more popular than the El Espino [2] crossing into Nicaragua from Choluteca [3]. Buses (US$1.50) drive frequently between Choluteca and Guasaule daily between 6 a.m. and 10 p.m., which are also the operating hours of the border offices. Direct buses to Tegucigalpa [4] leave several times a day until early afternoon, charging US$2. Minibuses run directly between Guasaule and El Amatillo, US$5, for those just transiting through Honduras.
Should you be forced to spend the night in Guasaule, Hotel Los Tres Hermanas, the last building on the Honduran side, is not too bad. Across the street, decent food can be found at Cafetería La Aurora.
Just past town is the border bridge, over the Río Guasaule. Half a kilometer farther is the Nicaraguan border post, then at another five kilometers is the town of Somotillo. From here, other buses continue elsewhere inside Nicaragua.
Links:
[1] http://www.moon.com/destinations/honduras/southern-honduras/the-pacific-coast/san-lorenzo-and-the-tegucigalpa-highway/el-amatillo
[2] http://www.moon.com/destinations/honduras/southern-honduras/the-pacific-coast/the-nicaraguan-border/el-espino
[3] http://www.moon.com/destinations/honduras/southern-honduras/the-pacific-coast/choluteca
[4] http://www.moon.com/destinations/honduras/southern-honduras/tegucigalpa