Publish: May 30, 2025
Buying property in Costa Rica as a foreigner is absolutely possible — especially when you understand the various financing options available. While the local banking system has its particularities, there are flexible alternatives both within and outside the country. Below, we explore the four main paths to consider if you’re thinking of investing in Costa Rican real estate.
1. Seller Financing 🤝
This popular yet limited option involves financing directly from the seller. This private agreement doesn’t require banks and is ideal for buyers seeking less bureaucracy and more room to negotiate.
Typical Conditions:
- A minimum down payment of 50% (some sellers may require more).
- The balance is paid over 2–5 years in monthly or quarterly installments.
- Interest rates typically range from 8% to 12%, negotiable.
Advantages:
- Quick process with fewer formalities.
- Direct negotiation with the seller.
- Perfect for buyers without local credit history.
Disadvantages:
- Not all sellers are open to financing.
- Shorter terms and limited amounts.
- Legal risk if not properly documented via public deed and legal counsel.
2. Mortgages with Costa Rican Banks 🏦
Banks like Lafise, BAC, and Scotiabank now offer mortgage loans for non-residents. This option provides formal financing over longer terms and competitive rates — but it does come with rigorous requirements.
General Terms:
- 20–30% down payment.
- Financing for 70–80% of the property’s value (subject to appraisal).
- Terms up to 25 years.
- Interest rates between 7% and 10%.
Requirements:
- Full financial documentation (proof of income, tax returns, bank statements).
- Valid credit history in your country of origin.
- Valid passport and possible immigration status in progress.
- Official translation of foreign documents.
Advantages:
- Legal security and backed by trusted institutions.
- Higher financing amounts and longer terms.
Disadvantages:
- Processing time of 2–4 months.
- May require proof of economic ties to Costa Rica.
- Extra costs for insurance, appraisals, and legal procedures.
3. Private Lenders (e.g. Volo Loans) 💸
Ideal for speed and flexibility, private lenders like Volo Loans (for U.S. citizens) offer competitive products without the strict conditions of a traditional bank.
Volo Loans Offers:
- Loans funded and serviced in USD from the U.S.
- 30-year amortization.
- No life insurance required, no prepayment penalties.
Current Programs:
- 30-Year Fixed
- 5/6 Adjustable
- 7/6 Adjustable
Loan Terms:
- Up to 75% Loan-to-Value (LTV).
- Rates starting at 9.000%.
Fees:
- Origination fee: 2.5% of loan amount.
- Underwriting fee: $1,895.
- Additional fees: Appraisal, legal, government.
Advantages:
- Faster approval than traditional banks.
- Flexibility for buyers without residency or local credit.
- Perfect for U.S. citizens managing everything from home.
Disadvantages:
- Higher interest rates.
- Only available to U.S. citizens.
- Contracts must be legally reviewed for Costa Rican compliance.
4. International Mortgages from the U.S. 🌍
U.S. citizens can apply for mortgages from lenders in the United States to purchase property in Costa Rica, through companies like Second Street or regional banks offering cross-border financing.
Typical Conditions:
- Minimum loan of $200,000 USD.
- 30-year fixed rate.
- Minimum credit score of 720 (FICO).
- Fully remote closing process.
Requirements:
- Proof of stable income.
- Solid credit history in the U.S.
- Appraisal of the property in Costa Rica.
- Signed and validated purchase agreement.
Advantages:
- No need to deal with local banks.
- Familiar processes for Americans.
- Suitable for long-term investment planning.
Disadvantages:
- High minimum loan amount.
- Limited to U.S. citizens or permanent residents.
- May not fully adapt to local market dynamics.
What’s the Best Option for You? 🤔
Before deciding, it’s important to consider your financial profile, the type of property you want, your investment horizon, and your country of origin. We also recommend:
- Working with a Costa Rican real estate attorney.
- Partnering with a local real estate agent experienced with foreign buyers.
- Seeking tax advice if you have assets or income in multiple countries.
🏡 Costa Rica is waiting for you with amazing real estate opportunities!
If you need help or want more information about how to buy a house in Costa Rica, feel free to contact us — we’ll be happy to guide you every step of the way and help you find your dream home!