Before the year 2000 it was difficult for foreigner to obtain financing for real estate in Costa Rica, unless the owner financed. As well, it has only been a few years, have been allowed to take out home mortgages at Costa Rica banking institutions. This didn’t slow property sales as foreign buyers generally arrive here in Costa Rica ready with cash transfers from bank loans and second mortgage from their home land.

A few years ago that changed with law revisions that allowed foreigners to apply for loans from both national and private banks and other lending institutions. These come with caveats such as foreigners needing to have residency papers and/or employment to get a loan or mortgage.

Unbeknown to many potential foreigner buyers is that it is possible to use pre-tax IRAs from the United States to purchase Costa Rica real estate. There is another little known option where by foreign real estate buyers can take out a line of credit on the equity of their home in the USA.

Interest rates for mortgages are variable depending on the market and the money lender making the loan.

Here are some options on financing Costa Rica Real estate:
A cash purchase is the most hassle-free way to pay for your home in Costa Rica. Of course when we say ”cash deal”, unless the owner is financing every deal is a cash deal done through bank wire or transfer. Click Here if you looking for a real estate agent to give you some advice on properties investments in the country Call a realtor in mal pais at 506 2640 0472

Owner financing: More and more homeowners are willing to finance a loan on their home. This affords certain benefits such as lower closing costs, a faster sale, and negotiable points. Be sure to be full cognoscente of current market interest rates, also be aware of the legal and improper paperwork – secure a real estate lawyer for this.

Home equity loans: You may take a home-equity loan out on your primary residence. This gives you option to into the Costa Rica real estate market as a cash buyer.

Bank financing: Costa Rican banks now offer financing to non-residents and residents alike. Some requirements they expect are a current account with the bank, proof of income and or pension, an international credit check, and an official bank arranged/approved property appraisal. Local mortgage terms can very as well as interest rates, amount of down payment required and loan periods. The bank loan process will take approximately two to three months

Mortgage broker: A relative new trend is international mortgage brokers which allow buyers to acquire financing through international lender institutions. They have their standard requirements such as U.S. tax information, income reports, credit check, etc.

If you are looking a purchasing Costa Rica real estate, make sure secure a good, reputable real estate agent as well as a legal advisor before entering into negotiations and contracts.