Loans Explained: Financing Property in Costa Rica

Buying property in Costa Rica is exciting—but when it comes to financing, most buyers quickly realize the system here works very differently from what they’re used to in the U.S. or Canada. Things like down payments, interest rates, loan terms, and who can actually get financing can feel confusing when you first start looking.

The good news?Financing options for foreigners have expanded dramatically over the last few years. You no longer need to pay for everything in cash or navigate the long, complicated process of applying through a Costa Rican bank.

As someone who works closely with US lenders working in international markets , escrow companies, attorneys, and foreign buyers every day, I want to walk you through how financing truly works here—what’s available, what’s realistic, and where most buyers find the best opportunities.

Let’s break it all down clearly, in plain English.

Why Financing Works Differently in Costa Rica

Local Costa Rican banks are conservative with lending, especially to non-residents.

Because of this, foreign buyers traditionally had three options:

1. Pay cash

2. Use private financing

3. Borrow against property in their home country

But now, with the arrival of international lenders focusing exclusively on Costa Rica, foreign buyers have better—and more secure—paths to getting the property they want.

Introducing U.S.-Based Financing Options in Costa Rica

The biggest change in recent years is the arrival of international mortgage lenders who understand the Costa Rica market, such as Volo loans  and others who specialize in foreign-buyer lending.

These lenders offer:

• Loans in USD

• Clear underwriting

• Fast approval timelines

• Terms similar to U.S.-style loans

• Transparent requirements

• Financing for homes, condos, villas, and investment properties

This has opened doors for buyers who prefer to leverage their capital instead of tying up huge amounts of cash.

Typical Loan Structure for Foreign Buyers

While every lender has its own specifics, here’s what buyers can generally expect:

Down Payment

Most foreign-buyer loans require:

• 25% down for residential property

Loan Terms

Depending on the lender:

• 20–30 years amortization

• 5–7 year adjustable term options

• Interest rates typically 8%–10% depending on current US rates 

Eligible Property Types

Most lenders finance:

• Condos

• Single-family homes

• Luxury homes

• Pre-construction (case-by-case)

• Investment properties with rental history

They do not usually finance:

• Raw land

• Properties without a registered plano

• Homes lacking occupancy permits

• “Unique” structures that fall outside building code

Why More Buyers Are Choosing International Financing

1. Predictable Approval Process

These lenders operate like U.S. lenders—documents, underwriting, appraisals, risk evaluation, and clear timelines.

2. Loans Are in USD

That means:

• No currency risk

• No conversion complications

• Financial predictability

3. You Don’t Need Costa Rican Residency

Perfect for buyers relocating or investing.

4. Fast Closings

Some lenders close in 30–45 days, which is significantly faster than local banks.

Can Canadians Get Financing in Costa Rica?

Absolutely.In fact, Canadian buyers are one of the fastest-growing groups securing U.S.-style loans here.

Lenders who operate internationally can work with Canadian clients as long as:

• Income can be verified

• Bank statements are provided

• Credit history is clear

• The property is eligible

This is especially helpful because traditional Canadian lenders rarely lend outside the country.

What Documents Do You Need to Qualify?

Every lender is slightly different, but most require:

• Passport

• Proof of income

• 2–3 years tax returns

• Recent bank statements

• A credit report

• Property information (once under contract)

• Proof of down payment funds

The process is straightforward—and much more familiar to North American buyers than local bank financing.

Seller Financing: A Hidden Opportunity

Seller financing is still common in Costa Rica, especially for higher-end properties. It’s not unusual to see:

• 30%–50% down

• Interest-only or amortized payments

• 1–5 year terms

This benefits buyers who are:

• Waiting to sell property elsewhere

• Needing time to reposition funds

• Looking for a bridge loan

And it benefits sellers who:

• Want passive income

• Prefer not to take a large capital gain all at once

• Want to widen the buyer pool

Seller financing is negotiable—and should always be handled by a knowledgeable

attorney with escrow-backed documentation.

Should You Pay Cash Instead?

Cash is still king in Costa Rica. It gives buyers:

• Stronger negotiating power

• Faster closings

• Access to more property types

Even with international loans available, cash can still mean the difference between winning

a deal in a competitive market or losing it.

But for buyers who want to leverage their capital, financing is a smart strategy—especially for income-producing property where the revenue offsets the mortgage.

How Rental Income Plays Into the Equation

For investment properties, lenders may consider:

• Historic rental performance

• Market rental projections

• Occupancy rates

• Property management structure

Vacation rentals in areas like Tamarindo, Langosta, Flamingo, and Playa Grande often generate:

• 6%–8% net returns annually

• Strong high-season occupancy

• Year-round demand for digital nomads and long-term guests

This can help offset carrying costs or qualify buyers for better loan terms (depending on lender).

Final Thoughts: Financing Is Possible—You Just Need the Right Partners

Financing property in Costa Rica used to feel impossible for foreigners. Today, it’s not only possible—it’s increasingly common.

The most important thing is working with professionals who:

• Understand foreign-buyer lending

• Know which lenders are active

• Guide you through requirements

• Protect your investment

• Structure your deal properly

Whether you want to leverage financing, combine a loan with crypto assets, explore seller financing, or simply compare your options, I’m here to walk you through every step.

Buying property in Costa Rica should feel exciting—not overwhelming—and the right financing strategy can help you make a smart, comfortable investment in paradise.