Financing in Costa Rica

Costa Rica banks have always been very conservative when lending money, in fact it’s one of the main reasons why you don’t see the real estate market saturated with foreclosures. Traditionally, if foreigners were able to secure financing with a Costa Rica bank it was often difficult and expensive, and at this time while rates are lower......

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It’s still nearly impossible for foreigners to be approved for loans. U.S. lenders aren’t quite forming a line to lend money for Costa Rica real estate either. So how do foreigners purchase property in Costa Rica when they don’t have cash? This is a question that many people just starting to explore Costa Rica real estate are asking. And as the amount of cash buyers seems to be dwindling, it’s a very new and evolving trend in Costa Rica real estate.

One of the most interesting development in our market is the need and request for some sort of financing, and the market is making adjustments to handle these requests. What was once a strictly cash market is now changing as we see more and more sellers open to offer some sort of seller financing. More and more developers are offering some sort of financing. Rates aren’t low, figure on somewhere between 7-9% over 30 years and plan on some sort of balloon payment in 3-5 years. But for now that is addressing the need for many. Most people looking to purchase have at least 20-50% to put down and are simply needing some sort of bridge till maybe they receive a pension or maybe sell a property back home that is on the market.

The bottom line is that sellers and developers are now much more flexible and negociable with offering some sort of financing. So don’t be discouraged if you aren’t a cash buyer, but just be aware you will need a solid amount down and may lose some leverage when negotiating price.