Costa Rica Real Estate Investment

Financial Landscape for Costa Rica Real Estate Investment

While local banks are becoming more accommodating, private lenders remain a key resource for speed, flexibility, and tailored solutions. Costa Rica offers a growing range of financing options for foreign real estate investors, blending traditional bank mortgages with private and alternative lending solutions.

At Summer Coast Realty, led by CEO Lindsey Cantillo, we guide clients through the complex financing landscape for Flamingo Beach and Tamarindo Beach properties. Visit us at www.summercoastrealty.com or at our office conveniently located near both beaches.

Traditional Banks (Local and International)

Historically, Costa Rican banks required strict residency, income verification, and documentation, making mortgages difficult for foreigners. Today, some banks have created programs specifically for U.S. and Canadian buyers.

Local Private Banks (e.g., Banco Lafise, Banco BCT, BAC):

Terms: Down payments of 25–50%, loan terms up to 20–25 years, fixed or variable interest rates.
Process: Rigorous documentation, conservative property appraisals, and longer approval timelines.

International Banks (e.g., Scotiabank):

Offer mortgages in U.S. dollars or Colones, often with more familiarity with international documentation.

Many clients of Summer Coast Realty have successfully obtained traditional financing through these banks, even amid bureaucratic hurdles.

Private Lending & Hard Money

Private lenders are an essential resource for foreign buyers, offering fast, property focused financing.

Hard Money & Private Lenders:

Interest Rates: Typically 9–15% due to higher risk.
Term Length: Short-term loans, 1–3 years, often as bridge loans.
Process: Fast approval (often within weeks).
Due Diligence: Always work with a reputable local attorney to ensure legal security.

International & National Mortgage Companies:

Second Street: Offers 30-year fixed rate mortgages, U.S. style process, ideal for longterm stability.
VOLO Loans: U.S. based financing for Costa Rica properties, fast closings, 30 year amortization, fixed rates, up to 75% LTV, no prepayment penalties.

Seller & Developer Financing

These options are common in resort and expat communities and are highly flexible.

Seller Financing:

Down payments often 50–65%, short terms (1–3 years), balloon payment at the end.
Formal mortgage registered on the property title.
Interest typically 7–9%, negotiable.

Developer Financing:

Offered by developers of new residential communities.
May have more lenient requirements than banks.
Perform due diligence on the developer’s reputation and financial stability.

Cooperative Banks & Credit Unions

Some cooperatives, like Coopealianza, offer loans to foreigners, usually requiring high down payments and proof of income or local financial ties.

Summary for Foreign Buyers

Lender Type	Pros	Cons	Best For
Local Private Banks	Long terms, lower interest rates	Strict requirements, time-consuming	Foreigners with solid financial history and patience
Private Lenders	Fast approval, flexible terms	High interest, short term	Buyers needing quick or bridge financing
International Mortgage Companies	30-year fixed-rate, familiar process	Often specific to U.S. citizens	U.S. buyers seeking stable long-term loans
Seller Financing	Highly negotiable	High down payments, short terms	Buyers with a willing seller
Developer Financing	Streamlined purchase, lenient requirements	Depends on developer reliability	Buyers in new residential communities

Important: Regardless of financing type, always engage a trusted local real estate attorney to protect your investment.

Some cooperatives, like Coopealianza, offer loans to foreigners, usually requiring high down payments and proof of income or local financial ties.

Summary for Foreign Buyers

Lender Type	Pros	Cons	Best For
Local Private Banks	Long terms; competitive rates; local branches.	Strict documentation; slower for foreigners.	Residents & well-documented expats
Developer-Linked Financing	Fast approvals; aligned with project timelines.	Often higher rates; tied to specific projects.	Buyers choosing one development
International / Offshore Banks	Use foreign income/credit; multi-currency.	Higher fees; larger down payments; FX risk.	High-net-worth, multi-country earners
Credit Unions / Cooperatives	Member-focused; flexible on edge cases.	Lower loan caps; limited English support.	Local salaried buyers
Private Lenders (Hard Money)	Very fast; asset-based decisions; fewer docs.	Higher rates/points; short terms; balloons.	Bridge loans; time-sensitive deals

Lender Type	Pros	Cons	Best For
Local Private Banks	Long terms; competitive rates; local branches.	Strict documentation; slower for foreigners.	Residents & well-documented expats
Developer-Linked Financing	Fast approvals; aligned with project timelines.	Often higher rates; tied to specific projects.	Buyers choosing one development
International / Offshore Banks	Use foreign income/credit; multi-currency.	Higher fees; larger down payments; FX risk.	High-net-worth, multi-country earners
Credit Unions / Cooperatives	Member-focused; flexible on edge cases.	Lower loan caps; limited English support.	Local salaried buyers
Private Lenders (Hard Money)	Very fast; asset-based decisions; fewer docs.	Higher rates/points; short terms; balloons.	Bridge loans; time-sensitive deals

Cooperative Banks & Credit Unions

Some cooperatives, like Coopealianza, offer loans to foreigners, usually requiring high down payments and proof of income or local financial ties.

Summary for Foreign Buyers

Lender Type	Pros	Cons	Best For
Local Private Banks	Long terms, lower interest rates	Strict requirements, time-consuming	Foreigners with solid financial history and patience
Private Lenders	Fast approval, flexible terms	High interest, short term	Buyers needing quick or bridge financing
International Mortgage Companies	30-year fixed-rate, familiar process	Often specific to U.S. citizens	U.S. buyers seeking stable long-term loans
Seller Financing	Highly negotiable	High down payments, short terms	Buyers with a willing seller
Developer Financing	Streamlined purchase, lenient requirements	Depends on developer reliability	Buyers in new residential communities

Important: Regardless of financing type, always engage a trusted local real estate attorney to protect your investment.

At Summer Coast Realty, we specialize in helping foreign buyers navigate all financing options for Flamingo Beach and Tamarindo Beach properties.

Contact Us:

CEO: Lindsey Cantillo

Website: www.summercoastrealty.com

Address: Flamingo, Santa Cruz, Guanacaste, Costa Rica