Costa Rica Real Estate Financing Options for Non-Residents: Your Guide to Owning Paradise

Your Dream of Paradise is Closer Than You Think

For many, the allure of Costa Rica’s breathtaking landscapes and serene lifestyle is undeniable. However, securing real estate financing can raise many questions. Is it possible? The good news is that financing for Costa Rican properties is now more accessible than ever, even for non-residents. While the process may differ from what you’re used to, the opportunities are significant and worth exploring.

Understanding Home Financing Options in Costa Rica

Costa Rica offers several avenues for real estate financing, each tailored to different buyer needs. Whether you’re a resident or a non-resident, understanding your options will help turn your dream of owning property in paradise into a reality. Here’s an overview of the primary financing methods available:

• Developer Financing
• Owner Financing
• Bank Financing

Developer Financing

A popular choice for buyers, especially in pre-construction developments, developer financing offers flexibility and convenience.

• Terms: Typically requires a down payment of 20% to 40% of the property value, with financing periods ranging from 5 to 15 years. Interest rates usually range from 6% to 12%, depending on creditworthiness and developer policies.
• Benefits: Easier qualification, reduced paperwork, and flexible payment schedules. Some developers collaborate with banks, creating hybrid financing solutions.
• Considerations: Shorter financing terms and potentially higher interest rates. It’s crucial to verify the developer’s reputation and financial stability before committing.

Owner Financing

This traditional option remains viable and often suits private sales.

• Terms: Negotiable but usually involves a down payment of 25% to 50% and repayment terms of 3 to 10 years. Interest rates typically range from 6% to 12%.
• Benefits: Flexible terms and easier qualification processes compared to banks. Direct negotiations can speed up transactions.
• Considerations: Terms must be legally documented to avoid misunderstandings. Interest rates or terms may not always be as favorable as other financing options.

Bank Financing

Local banks in Costa Rica have expanded their offerings to include options for foreign buyers, even those without residency.

• Eligibility: Proof of stable income, good credit history, and documentation from your home country (e.g., tax returns, bank statements). Some banks, such as Banco BCT, Scotiabank, Banco LAFISE, BAC San José, and Banco de Costa Rica (BCR), now offer tailored options for non-residents.
• Terms: Down payments range from 20% to 50%, with mortgage terms extending from 15 to 30 years. Interest rates typically range between 7% and 12%.
• Benefits: Longer repayment periods and structured mortgage options.
• Considerations: Higher interest rates compared to other countries, detailed documentation requirements, and lengthy approval processes.

Highlighted Banks Offering Non-Resident Financing

• Banco BCT: Offers second home loans and bridge loans with LTV ratios up to 65% and terms of up to 20 years. Interest rates start at 7.75% for fixed rates. Visit Banco BCT
• Scotiabank Costa Rica: Provides tailored mortgage solutions for non-residents, requiring documents like tax returns, bank statements, and proof of income. Visit Scotiabank Costa Rica
• Banco LAFISE: Offers terms up to 30 years and financing for up to 70% of the property value. Suitable for home purchases, construction, or renovation. Visit Banco LAFISE
• BAC San José: Offers mortgages in both dollars and colones, financing up to 70% of the property value with terms ranging from 15 to 30 years. Visit BAC San José
• Banco de Costa Rica (BCR): Provides loans up to 70% of the property value for non-residents, with terms up to 20 years. Visit Banco de Costa Rica

Key Considerations When Financing Property in Costa Rica

• Currency: Most financing is offered in U.S. dollars, though colón-based mortgages are available.
• Interest Rates: Higher than in many other countries due to market size and economic factors.
• Closing Costs: Legal fees, notary fees, and taxes can add significantly to your budget.
• Legal Advice: Engaging a reputable attorney is crucial to ensure clear, binding agreements, particularly for owner and developer financing.

Turn Your Dream into Reality

Navigating real estate financing in Costa Rica may seem complex, but with the right guidance and information, it’s entirely achievable. Whether you’re exploring owner financing, developer options, or a traditional mortgage, our team is here to help.

From initial inquiries to finalizing your dream property, we’re committed to making the process seamless and stress-free. Contact us today to explore the possibilities and take the first step toward owning your slice of paradise in Costa Rica.