Buying in Costa Rica can feel wonderfully simple right up until the conversation turns to financing. Yes, loans exist here, but most foreign buyers end up using alternatives because the bank route can be slow, document-heavy, and often requires a bigger deposit than people expect.

Online, you’ll see plenty of “easy financing available” claims. In real life, it’s more nuanced. Costa Rican banks are cautious lenders (especially with non-residents), which is part of why the system is considered relatively conservative—but it also means you’ll want a Plan B from the start.

Can foreigners get a mortgage from a Costa Rican bank?

Yes, foreigners can sometimes get a mortgage, but non-residents usually face stricter terms and longer timelines. BAC+1

What commonly makes it harder for non-residents:

• Higher down payments (often much higher than back home)

• Extensive proof-of-income and source-of-funds documentation

• Translation, notarisation, and authentication requirements

• Longer approval timelines and more back-and-forth

One important detail: some banks explicitly market loan programmes to foreigners, but the conditions typically differ between residents (DIMEX holders) and non-residents. BAC

Why does the bank process feel so paperwork-heavy?

Because Costa Rican lenders tend to verify income, identity, and property details very carefully, and they rely on formal documentation for nearly everything. CR Law Ltd.+1

Expect requests such as:

• Passport and residency status (if applicable)

• Bank statements, tax returns, proof of income

• Credit references and financial profile disclosures

• Property documents and appraisal

• Signed and notarised forms (often with specific formatting)

If you’re used to quick digital approvals, this can feel like stepping back in time—but it’s normal here.

Is it true that no Costa Rican bank has ever failed?

No—Costa Rica has had notable bank closures, including Banco Anglo Costarricense (closed in 1994) and the wind-down/closure process around Bancrédito. La Nación+2Semanario Universidad+2

A better way to say it (and keep it accurate) is this: Costa Rican banks are generally conservative lenders, and the system is heavily regulated—so lending tends to be cautious, particularly with foreign borrowers. That conservatism is part of why approvals can be hard to secure quickly.

What extra costs come with financing in Costa Rica?

Budget for legal, registration, and stamp-related costs in addition to the interest rate—because these can materially change the “real” cost of borrowing. costaricaguide.co.cr+1

Costs vary by structure and the notary/legal approach, but commonly include:

• Public Registry recordation/registration fees tied to the mortgage amount CR Law Ltd.+1

• Documentary stamps and formal filing costs costaricaguide.co.cr

• Legal/notary fees and due diligence work (separate from the loan itself)

Because fees and stamps can depend on how the mortgage is drafted and registered, use a reputable independent attorney to estimate costs on your specific deal before you commit.

What is developer financing, and when does it make sense?

Developer financing can be a practical option when buying directly from a reputable project, but you must verify the developer’s track record and protect yourself legally.

Developer financing can be attractive because:

• The process may be faster than bank lending

• Requirements can be simpler (though not always)

• Terms may be designed for international buyers

Watch-outs to take seriously:

• Confirm the developer’s financial stability and delivery history

• Confirm permitting, water availability, and title clarity

• Avoid using the developer’s attorney for your side of the deal (conflict of interest)

• Make sure deposits and milestones are clearly defined in the contract

What is seller financing (owner financing) in Costa Rica?

Seller financing is when the owner accepts a deposit and carries the balance under a legally secured structure registered against the property.

Why it’s popular:

• It can bridge a timing gap (selling a home back home, moving investments, liquidity planning)

• It can be faster than local bank approvals

• Terms are negotiable (deposit, rate, repayment schedule, balloon, etc.)

Typical components:

• A substantial down payment

• A formal promissory note and mortgage/lien or trust structure

• Clear default terms, payment dates, and cure periods

• A process for releasing the lien once paid

How is seller financing secured so both sides are protected?

A properly drafted and registered security structure protects the seller’s right to be paid and the buyer’s path to clear title once the loan is satisfied.

Good practice normally includes:

• Independent legal representation (especially for the buyer)

• Clear registration of the mortgage or lien in the Public Registry

• A neutral, professional third-party process for documentation and tracking payments

This is where “cheap shortcuts” can become expensive—so treat the legal structure as part of the investment, not an optional add-on.

What does a realistic seller-financing example look like?

A common structure is: strong deposit + affordable monthly payments + a balloon payment after 12–36 months.

Here’s a clean, typical-style example (numbers purely illustrative):

• Purchase price: $400,000

• Deposit: $200,000 (50%)

• Seller carries: $200,000

• Amortised over a longer period to keep payments manageable

• Balloon due in 24 months to clear the remaining balance

Why buyers like it:

• It buys time to sell an asset back home

• It avoids rushed liquidation and potential tax inefficiency

• It secures the property now rather than “waiting and hoping”

Can I finance my Costa Rica purchase using equity back home?

Yes—many buyers use a home equity line or other borrowing in their home country to buy in Costa Rica with cash.

Common approaches:

• Home equity line of credit (HELOC) or refinancing back home

• Loan against an investment portfolio (offered by some financial institutions)

• Short-term bridge borrowing while a property sale is pending

The big advantage: you may avoid Costa Rican bank bureaucracy entirely and close faster.

The big caution: you’re putting another asset on the line, so make sure the plan fits your risk tolerance.

Can I buy with retirement funds, like a self-directed IRA?

Sometimes, yes—some US buyers use self-directed retirement structures, but it must be set up correctly and you need specialist guidance.

Key points to keep it clean:

• Work with an experienced custodian/administrator

• Confirm the purchase structure and compliance rules

• Understand restrictions on personal use and prohibited transactions

If you’re considering this, treat it like a formal strategy, not a “quick hack.”

Is buying land now and building later a smart strategy?

It can be a very smart strategy if your timeline is 3–5 years out and you want a lower-cost way to secure location now.

Why people do it:

• Lower purchase price than a finished home in the same area

• Low carrying costs compared with a built property

• Flexibility to design exactly what you want later

Do your homework on:

• Legal access, registered easements, and road frontage

• Water source and availability

• Zoning, permits, and environmental constraints

• Builder availability and realistic construction budgets

What are the safest steps for any financing option?

The safest path is: verify title, verify the people, verify the numbers, and keep your legal representation independent.

A practical checklist:

• Use a reputable, independent real estate attorney

• Confirm property status in the Public Registry (title, liens, boundaries)

• Verify HOA rules (if applicable), water, and permits

• Get all financing terms in writing (rates, default terms, balloon dates)

• Avoid pressure tactics and “today only” urgency

FAQ: Financing property in Costa Rica

Can non-residents really get mortgages in Costa Rica?
Yes, sometimes, but terms are often stricter and down payments higher than residents. BAC+1

Is seller financing common?
Yes, it’s common enough that many transactions include some form of short-term owner financing, especially for well-priced properties.

Should I use the seller’s or developer’s attorney to save money?
No—use your own independent attorney to avoid conflicts of interest and protect your side of the deal.

How long does bank approval take?
It varies, but it can take weeks to months depending on documentation, residency status, and the bank’s internal process.

Are Costa Rica closing and registration costs different from North America?
Yes—there are specific registry and stamp-related costs, and mortgage recordation fees are tied to how the loan is structured and registered. costaricaguide.co.cr+1

Is buying land safer than buying a home?
Not automatically—land needs extra diligence on access, water, permits, and zoning, but it can be a strong long-term play if verified properly.

/vc_column_text]See this article in the 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