For many years, international buyers approaching the Costa Rica real estate market expected to purchase with cash. That remains common, but it is no longer the only route.

Foreign buyers today may encounter several financing options, including Costa Rican bank mortgages, international lenders serving Costa Rica, seller financing and borrowing against assets in their home country.

The important distinction is that financing availability depends on both the buyer and the property. Citizenship or residency alone does not determine approval, and a financially qualified borrower can still encounter problems if the property does not meet a lender's legal, appraisal or underwriting requirements.

Here is what international buyers should understand before making a property purchase dependent on financing.

1. Local Bank Mortgages

Some Costa Rican banks offer mortgage products that may be available to foreign residents and, in certain cases, non-residents.

Requirements vary substantially.

For example, BAC currently advertises a home-financing program specifically for foreign buyers. The bank states that financing may reach up to 75% for residents with DIMEX and up to 50% for non-residents, based on the lower of the appraised value or purchase price. BAC also lists financing products for homes, lots and construction.

DAVIbank also publishes mortgage requirements specifically for non-resident customers. Its documentation requirements include identification, financial information and income verification; U.S. applicants are asked to provide two years of verified tax returns.

Other banks offer residential mortgage programs, but published headline terms should not be assumed to apply automatically to a foreign or non-resident borrower.

The practical lesson: speak with the bank before making an offer contingent on financing and confirm your eligibility, likely down payment, acceptable property types and documentation requirements.

2. International Mortgage Lenders

One of the most significant changes for international buyers in recent years has been the arrival of lenders specifically financing residential property in Costa Rica using underwriting models that may feel more familiar to North American borrowers.

Volo Loans, for example, currently offers U.S.-based financing for qualifying U.S. citizens and permanent residents purchasing residential property in Costa Rica. Its published purchase program starts with a 25% minimum down payment and evaluates applicants using U.S. credit and income documentation rather than requiring Costa Rican credit history.

Second Street also offers long-term mortgage financing for qualifying foreign buyers purchasing completed residential property in Costa Rica. Its published program includes 30-year fixed-rate mortgages and generally requires at least 25% down. It currently does not finance raw land or unfinished construction.

Eligibility and program terms can change. Buyers should confirm current requirements directly with each lender before relying on a particular financing structure.

3. Seller Financing

Some Costa Rica property owners are willing to finance a portion of the purchase themselves.

Under seller financing, the buyer typically contributes an agreed down payment and pays the remaining balance according to negotiated terms. These may include monthly payments, a shorter repayment period and, in some transactions, a balloon payment at the end.

This arrangement can provide more flexibility than conventional financing, but it should not be treated as an informal agreement.

The purchase and financing documents should clearly address:

• Interest rate
• Payment schedule
• Loan term
• Collateral or security
• Late payments and default
• Prepayment
• Balloon payments, when applicable

A Costa Rican attorney should review the structure and ensure that the parties' respective interests are properly documented.

Seller financing is property-specific. Buyers should not assume it is available unless the listing or seller has expressly confirmed it.

4. Financing Through Assets at Home

Some international buyers choose not to finance the Costa Rican property directly.

Instead, they may consider accessing capital through assets or banking relationships in their home country. Depending on the individual, examples can include a home-equity line, cash-out refinance, securities-backed lending or another form of borrowing.

From the Costa Rica transaction's perspective, this may allow the buyer to make a cash purchase even though financing was used elsewhere.

The trade-off is important: another home, investment portfolio or asset may become collateral. Tax consequences, interest costs and repayment risk should therefore be evaluated with a qualified financial adviser in the buyer's home jurisdiction.

5. The Property Has to Qualify Too

This is one of the most important points foreign buyers can miss.

Obtaining prequalification does not mean that every Costa Rica property can be financed.

Lenders may review:

• Title and ownership structure
• Appraised value
• Legal access
• Water and utility documentation
• Condominium status and obligations
• Insurance eligibility
• Completion status
• Property type
• Location

Raw land, unfinished construction, unusual commercial properties and concession properties may be treated very differently from a completed residence on titled land.

For example, Second Street currently limits its program to completed residential properties on titled land with legal access to utilities and does not finance vacant land or unfinished construction.

This is why the financing conversation should begin before a buyer becomes committed to a particular property.

6. Prepare for More Documentation Than a Cash Purchase

A financed transaction generally requires the lender to review both the borrower's finances and the property.

Depending on the lender and buyer profile, documentation may include:

• Passport or identification
• Proof of address
• Tax returns
• Employment or business income documentation
• Bank and investment statements
• Credit history
• Evidence of the down payment
• Source-of-funds documentation
• Purchase agreement
• Property appraisal
• Title and cadastral documentation

Self-employed applicants or buyers earning income outside Costa Rica may need additional documentation.

Preparing these records early can make the property search considerably more efficient.

7. Financing Should Be Addressed in the Offer

If the purchase depends on obtaining a loan, the purchase agreement should reflect that reality.

A financing contingency can establish important deadlines and consequences, including:

• When the buyer must apply
• When approval must be obtained
• What constitutes final lender approval
• What happens if the appraisal comes in below the purchase price
• When the deposit becomes non-refundable
• What happens if financing is declined
• Which financing-related costs belong to each party

Prequalification is useful, but it is not final loan approval. The lender may still require appraisal, title review, due diligence, insurance and final verification of the borrower's finances before closing.

An independent Costa Rican attorney should review the transaction documents and financing structure.

Which Financing Route Makes Sense?

There is no single answer.

A non-resident buyer purchasing a completed condominium may have options that are unavailable to someone purchasing raw land. A U.S. buyer may qualify for a specialized international mortgage product that is unavailable to a European buyer. A seller may be willing to finance one property and refuse financing on another.

The useful questions are therefore:

- How much capital do you want to contribute?
- What type of property are you purchasing?
- How long do you expect to own it?
- What documentation can you provide?
- And which financing structures are actually available for that specific transaction?

Answering those questions before selecting a property can prevent financing from becoming an obstacle later in the buying process.

Buying in Playas del Coco or the Gulf of Papagayo?

At Coldwell Banker Coast to Coast Properties, our role is not to provide loans or financial advice. We can, however, help buyers identify properties that align with their search, understand when financing may affect an offer or closing timeline, and coordinate with independent lenders, attorneys and other professionals involved in the transaction.

Planning a property search in Guanacaste? Talk with a local advisor about the type of property, budget and financing considerations relevant to your plans.