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introduction
property types
buying process
protection
financing
construction
corporation
residency
conversion chart
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financing
More than 95 % off all property transfers are cash deals. However, over the last year there are appearing some possibilities of financing properties in Costa Rica. In comparison to other countries the offered possibilities are few and not very attractive. Financing offered by the seller Sometimes it's possible to negotiate a finance plan direct with the seller of the property. Normally the property will be mortgaged in favor of the seller. Duration of a loan usually is short (up to 3 years) and interest percentages high. Furthermore a negotiation position of the buyer is weak. Subjects in a sales contract are tipically the right for the buyer to use, develop or sell the land before paying off the loan. Financing through a title insurance company This type of financing is available only for US and Canadian citizens. In order to get financing the client has to purchase a title insurance through the same company, which already sums up to approximately 3% of the purchase price. The title company requires income proof and tax return sheets, life insurance. The property will be mortgaged. Within 3 weeks a loan can be available up to 75% of the property value. Duration up till 20 years and no penalties when paying off earlier. Interest rates in between 10 and 11 % annually. Financing through banks in Costa Rica At this moment banks mortgage properties between 11.5% and 15 % annually and more or less the same conditions as the title insurance companies. Some banks require that the property has a construction on it. |
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