Financing property in Costa Rica is not easy. In fact, it will indeed test your patience to the limit as one of our recent home site buyers discovered in his quest for a source of financing for the construction of his home. We will be honest with you from the start. It might seem like you are being treated like you might be the main guy in a major drug ring. One of the things that wears hard on people is that things happen slower here than in the USA and Canada. At times, there seems to be no sense of urgency towards anything, especially work. But as you have heard before, “If there’s a will, there’s a way” and as our buyer discovered he was eventually able to get financing although he had a pretty rough time of it!
A couple of ways to buy a property in Costa Rica without having 100% of the cash needed are listed below. One of them could apply to your situation.
Owner/Developer Financing in Costa Rica: At times, you will find that the owner/developer of the property will finance a portion of your purchase. This is great if you can find this scenario and the property price is not inflated. At Osa Mountain Village we cannot offer financing on our villas. With that said, a few exceptions have been made when a buyer had almost all of the money needed for the purchase and would be able to pay it off in short order. In other words, we do occasionally make deals with people that are close.
Bank Financing in Costa Rica: This is much more difficult, especially if you have no history within the country already established. A few things you will undoubtedly discover as you look into bank financing is that interest rates in Costa Rica are generally higher than in the USA or Canada. You will not find a 20 year or 30 year loan here in Costa Rica either. More popular terms are for 5 years to 10 years. You’ll quickly see that down payments in Costa Rica are much higher here than you are used to seeing in the US and Canada. Be prepared to jump through many hoops to complete the deal and be ready to show massive amounts of patience as the time for approval can be up to six months. Know this upfront and plan accordingly. Our Toucan Meadows villas cannot be financed by any bank at this time due to the legal structure. Bank financing for home construction loans have been obtained by at least one buyer at OMV who owned his lot outright and several banks in the area are known to make these types of loans.
Using your 401(k)/IRA to Purchase: This may be your best way to purchase property in Costa Rica if you have a retirement account with enough funds available. There are many advantages to doing so. For more information visit our page on using retirement funds.
Regardless of how you choose to pay for your slice of paradise you will never regret buying property in Costa Rica. Visit us at Osa Mountain Village and see the most amazing community on the planet coming together right before your eyes.