Costa Rica Home and Property Financing

The process of bank financing in Costa Rica is similar to what occurs in the United States except banks only finance up to about 70% of the appraised value of the property for the most part.

Another big difference to bank financing in Costa Rica is the interest rates. Currently interest rates for real estate loans are very high, 25% to 30% per year. Mortgage money is available typically 3% to 4% over NY prime for up to 30 years.

Click below to view a nicely laid out Bank Loan Chart outlining the requirements for getting a bank loan in Costa Rica.

Courtesy of the Tico Times at www.ticotimes.net.

The information in this Bank Loan Chart is subject to change. Interest rates may vary depending on the current U.S. prime rate, the LIBOR and the Central Bank rate. For more information or up-too-date rates, contact the bank directly or visit their website listed within the chart.

There are several other ways to finance your property without using a Costa Rican Bank:

Many buyers are using equity loans on their current real estate holdings to secure property in Costa Rica.

Other buyers are obtaining an interest only loan. The payments usually last three to five years until the interest is paid and a final balloon payment is made for the principal amount.

In certain circumstances the seller will carry the mortgage on the property. We can offer advice when negotiating this type of transaction.

Our attorney is working with an American lending institution that will be offering loans for properties in Costa Rica close to current US interest rates. We will have more information as it becomes available.

 

 

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