Costa Rica checks all the boxes if your heart is set on owning a slice of paradise with dancing palm trees and gentle sea breezes. But financing your dream can seem intimidating. That’s where the real estate experts at Coldwell Banker Pacific Realty can be your superhero! We’ve helped hundreds of clients turn their vision of tropical living into a reality. We can help you, too! Read on as we share the ins and outs of property financing as a foreigner in beautiful Costa Rica.
Can You Get a Mortgage for a Home Loan in Costa Rica?
The short answer is yes! Foreigners can acquire mortgages for property purchases in Costa Rica, and there are several ways to go about it. From international lenders to local banks, there’s a solution available for your unique situation.
Financing Property in Costa Rica: What Are the Options?
Costa Rica welcomes foreign investment, so there are several property financing options. Among them are:
U.S.-Style Fixed-Rate Mortgages in Costa Rica - Second Street
As of September 2025, Americans can access 30-year, fixed-rate mortgages in Costa Rica through Second Street, the leading international mortgage lender. Typically, only 25-30% down is needed. Backed by a major U.S. mortgage lender, they are safe, reliable and offer standard features you’ll recognize, such as: no prepayment penalties, and transparent fees. Second Street is a fast option with great service, closing most loans in 45 days or less. Generally, Second Street offers the best interest rates for foreigners in Costa Rica.
Currently available to U.S. citizens and permanent residents for residential purchases. Construction loans are not offered, so properties must be fully completed at the time of closing.
For more, see our video interview where Matt Rosensteele, Owner–Broker at Coldwell Banker Pacific Realty, sits down with Zachary Kay, Founder and CEO of Second Street, to discuss the role of U.S.-style mortgages in Costa Rica’s real estate market.
Borrowing from Home Country
Securing a loan from your home country against an existing property that you already own is another avenue to try. You may be more familiar with the process and requirements for a HELOC, or Home Equity Line of Credit, and may get acceptable loan terms. These lines of credit typically have a variable interest rate, which is an important consideration when borrowing against your primary residence.
Private Banks in Costa Rica
Some local banks in Costa Rica offer financing for foreigners, but not all.
The banking institutions that do offer financing for foreigners generally provide adjustable-rate loans for up to 20 years with 50-70% maximum loan-to-value (LTV). The process can be slow (plan for at least 3-6+ months), comes with no guarantee of success, and may have terms you’re not used to, including: prepayment penalties, life insurance requirements (which often adds an additional 0.5% of your loan amount each year), and disqualifying age/medical restrictions.
It’s also important to understand that local banks use a replacement value appraisal instead of a market value appraisal. This means the appraised value of the property will likely be lower than your purchase price, especially in areas popular with foreigners. Keep this in mind, as this appraisal consideration can drastically decrease the amount that you’re able to borrow.
Private Lenders
This can be a workable alternative for some buyers, especially if more traditional loans aren’t an option or if you’re looking to finance construction. However, terms will vary significantly, so diligent research is recommended before choosing a lender. Generally, expect to pay 12-18% for a 1-3 year loan from a private lender, which is also called a hard money loan.
Seller Financing
This option is unique to the Costa Rican real estate market offered by motivated sellers. For the buyer, structuring payments directly with the seller makes tailored terms available that conventional lenders may not offer. These are often short-term loans (usually 1-5 years), sellers don’t prefer them, and they can be legally complex. If you choose this method, there are fewer consumer protections, so it’s important to find an experienced lawyer to help you close the deal.
The Smart Guide to Financing Property in Costa Rica
The local market experts at Coldwell Banker Pacific Realty can help you navigate the home selection and financing process effectively. Our in-depth knowledge regarding down payment requirements and regional legal considerations will help you move into your new home quickly and stress-free.
Financing for Foreigners in Costa Rica FAQs
Q: Do foreigners need a hefty down payment to get a loan in Costa Rica?
A:Historically, that was the case, but in 2025 there are new options with lower down payment options. International mortgage lenders, like Second Street, only require a 25-30% down payment. Local banks and private lenders ask for anywhere from 30-50% of the purchase price.
Q: Are interest rates high for home loans in Costa Rica?
A: They can be more than what you're used to qualifying for back home, and you need to watch out for hidden fees. We find that Second Street usually offers the best rates, if you qualify.
Q: Can I use my current income to qualify?
A: Proof of stable income and assets always opens doors to real estate loans for expats in Costa Rica.
Q: How long will it take to secure my home financing in Costa Rica?
A: The process depends on your lender, from a few weeks to six months or more. Have patience, and you’ll soon be enjoying your new home in paradise!
Conclusion
There are various paths to property financing as a foreigner in Costa Rica, each with benefits and considerations. Do diligent research and consult a local real estate specialist for guidance.
Get Help from the Costa Rica Real Estate Experts at Coldwell Banker
The exhilarating journey to home ownership in Costa Rica should begin with a call to our on-the-ground market experts. Using our detailed Foreigner Mortgage Guide, we’ll show you the myriad financing options and help you choose the right path forward.
At Coldwell Banker Pacific Realty, we know that buying property abroad can feel intimidating, but with our expertise, those sparkling beaches and lush rainforests are within reach!
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