Can Foreigners Get a Mortgage in Costa Rica? (2026 Real Estate Financing Guide)

By Miguel Párraga, Your Local Expert on Luxury Real Estate in Guanacaste

Yes, non-residents and foreign citizens can legally get a mortgage in Costa Rica to buy property. However, securing real estate financing in Costa Rica works very differently from getting a home loan in North America or Europe.

Whether you are looking for an ocean-view villa in Guanacaste or an investment condo in Playas del Coco, understanding how Costa Rica real estate financing for US citizens and international buyers operates will keep your transaction smooth and secure.

This guide explores every option available—from US cross-border lenders and traditional local banks to owner financing real estate Costa Rica listings and private trust funds.

1. US & Canadian Cross-Border Lenders (Volo Loans & SecondStreet)

With traditional Costa Rican commercial bank approvals taking anywhere from 60 to 90 days, specialized cross-border mortgage companies like Volo Loans and SecondStreet have rapidly become the primary financing choice for North American buyers. In fact, their growing presence has significantly shifted the market away from traditional seller financing.

Learn more about Volo Loans on our blog “Live Your Costa Rican Dream with Streamlined Financing from Volo Loans”

Key Terms, Rates, and Loan Structures

• Loan-to-Value (LTV): Typically range up to 65% to 70% LTV based on an official property valuation.
• Interest Rates: Highly competitive cross-border US dollar rates, generally ranging between 8.5% and 10.5% (far lower than private hard money or high-interest seller notes).
• Payment Terms & Amortization: Offers familiar 15-year to 30-year amortization periods with flexible loan terms (such as 3-year to 5-year balloon options or fully amortized structures), giving buyers manageable monthly payments.
• No Prepayment Penalties: Buyers enjoy the freedom to refinance or pay off their principal balance early at any time with zero prepayment penalties.
• Guaranty Trust Protection: Just like local institutions, these cross-border loans are legally collateralized using a Guaranty Trust (Fideicomiso de Garantía) in Costa Rica. The property is safely held in trust by an independent trustee, providing total legal security for both the buyer and lender.

Read our blog, “A Journey to Finding the Perfect Property in Costa Rica,” featuring an interview with a client who shares her experience finding and purchasing her property at Second Street—from the initial search to making it her own.

2. Local Costa Rican Bank Mortgages for Non-Residents

Major local private institutions—such as BAC Credomatic, Banco LAFISE, and Banco BCT—also offer specialized mortgage lines for foreign buyers and expats.

Loan Terms & Interest Rates

• Loan-to-Value (LTV): Non-resident foreign buyers are capped at a 50% LTV based on the lower of the appraisal or purchase price. (Expats holding legal residency / DIMEX can qualify for up to 75%).
• Costa Rica Mortgage Rates for Non Residents: Local bank rates for international buyers generally start with fixed interest terms for the first 2 years before converting to variable rates tied to SOFR or local benchmark indices. When calculating Costa Rica mortgage rates for non residents, expect total effective interest rates to sit around 8% to 11% once administrative and local legal setup fees are included.
• Legal Structure: Property mortgages are secured through a Guaranty Trust (Fideicomiso de Garantía) registered in the National Registry.

Qualification Requirements

To qualify for Costa Rica real estate financing for US citizens and Canadians at a local bank, you must provide:

1. Valid Passport (and DIMEX residency card if applicable).
2. Proof of income (US/Canadian tax returns, CPA-certified statements, or audited accounts).
3. Proof of origin of funds for anti-money laundering (AML) compliance.
4. An official property appraisal conducted by a bank-certified engineer.

3. Owner Financing in Costa Rica Real Estate (Seller Financing)

While owner financing remains widely available across Costa Rica, fewer buyers opt for it today due to the arrival of competitive US cross-border lenders like Volo Loans and SecondStreet. Because seller financing tends to be more expensive, buyers generally use it as a secondary option when fast, flexible closing without institutional underwriting is required.

Typical Owner Financing Terms:

• Down Payment: Expect to put down 30% to 50% of the purchase price upfront.
• Interest Rates: Typically range between 9% and 12% (making them noticeably more expensive than cross-border mortgages).
• Loan Duration: Usually short-to-medium term (2 to 5 years), structured with a balloon payment or a 3-year buyout.

Legal Protection for Owner Financing

When structuring owner financing real estate Costa Rica purchases, transactions are handled by reputable local law firms using a Guaranty Trust (Fideicomiso) or a recorded first-degree mortgage (Hipoteca en Primer Grado). This structure protects the buyer’s equitable ownership while securing the seller’s balance until payoff.

4. Private Lending & Capital Programs

Investors needing rapid execution, bridge funding, or construction capital frequently utilize private lending Costa Rica real estate programs.

• Asset-Backed Private Loans: Private lending Costa Rica real estate programs offer short-term bridge capital secured directly against high-equity real estate or commercial assets.
• Self-Directed IRAs (SDIRA): US citizens can legally use funds from a Self-Directed IRA or 401(k) to purchase real estate or extend private mortgages in Costa Rica.
• HELOCs & US Equity: Obtaining a Home Equity Line of Credit on a primary residence in the US or Canada allows you to buy in Costa Rica as an all-cash buyer at lower domestic interest rates.

 

Comparing Costa Rica Real Estate Financing Options

 

Financing Option	Down Payment / LTV	Timeline	Best For
Local Banks (BAC, LAFISE, BCT)	50% Down (50% LTV)	60–90 Days	Buyers wanting long-term foreign bank financing.
US Cross-Border Lenders	30%–50% Down	30–45 Days	US/Canadian buyers leveraging domestic credit profiles.
Owner Financing	30%–50% Down	7–14 Days	Fast, flexible transactions negotiated directly with sellers.
Private Lending Programs	Asset-Backed (Up to 50% LTV)	7–10 Days	Investors needing short-term bridge capital or rapid closings.

 

Summary Checklist for Buyers

 

If you are asking, “can foreigners get a mortgage in costa rica?”, the answer is a clear yes—provided you select the right vehicle for your financial goals. Whether you secure a loan through local bank programs, leverage cross-border financing, or structure seller financing, always ensure your funds pass through a registered escrow company.