Financing for Foreigners in Costa Rica: What Buyers Need to Know
Buying a home abroad can be exciting but when it comes to financing for foreigners in Costa Rica, it can also feel a little overwhelming. If you’re considering purchasing property as a foreigner, especially in beach towns like Tamarindo, Playa Flamingo, Playa Potrero, Brasilito, or Playa Grande, this guide will help you understand your options.
At Costa Rica Real Estate CR, we’ve worked with many international clients navigating the real estate process. One of the biggest questions we consistently receive is: Can foreigners get financing in Costa Rica?
The short answer is yes, but it differs from what you may expect in the U.S. or Canada. Let’s walk through the most common options available today including an exciting new development in the market.
Why Financing for Foreigners in Costa Rica Works Differently
In Costa Rica, foreigners often find it difficult to obtain traditional bank mortgages. Local banks frequently require residency or extensive documentation, and interest rates can be quite high ranging from 8% to 12%. Consequently, most real estate transactions here are cash-based.
However, financing for foreigners in Costa Rica has become more flexible in recent years. Many buyers now turn to seller financing, home country loans, or specialized international lenders. Understanding these options can certainly help you make a confident purchase in your ideal beach town.
Seller Financing – A Flexible Option Worth Exploring
Seller financing is one of the most accessible options for foreigners buying real estate in Costa Rica. In this arrangement, the property owner becomes the lender, and you make agreed-upon payments over time.
For instance, buyers in Tamarindo and Playa Potrero often find homes and condos where the seller offers terms like 30% down and monthly payments over 3–5 years. This type of financing particularly helps buyers who don’t qualify for Costa Rican bank loans or want to move quickly.
While not every seller offers financing, our team at Costa Rica Real Estate CR keeps an updated list of properties with flexible terms. Therefore, we can match motivated buyers with sellers open to creative solutions.
Using Home Country Financing to Buy in Costa Rica
Many foreign buyers use a loan or line of credit from their home country to finance a Costa Rican property. This could include:
- A Home Equity Line of Credit (HELOC)
- A cash-out refinance
- A personal or investment loan secured against another asset
Because the funds originate in your home country, you can bring them into Costa Rica and complete a cash transaction. This is a smart workaround if you prefer to avoid local bank loans altogether.
Indeed, this is a popular strategy for Canadians and Americans who have built equity in their homes and want to leverage it to purchase a tropical escape.
Introducing Volo Loans – U.S.-Style Financing Now Available in Costa Rica
Here’s exciting news: Volo Loans, one of our trusted lending partners, has secured $50 million in funding to support expats buying property in Costa Rica. This innovative solution offers U.S.-style mortgage options, bringing speed and familiarity to the financing process.
Why VoloLoans is a game-changer:
- Loans are issued in USD
- Approval timelines as fast as 45 days
- Structured like a typical U.S. mortgage
This is a major win for foreign buyers in areas like Playa Flamingo, Playa Grande, and Tamarindo, where demand is high and time is critical. At Costa Rica Real Estate CR, we can connect you directly with a VoloLoans representative to get started.
With this funding in place, the doors are now open to many more expats who previously thought financing in Costa Rica was out of reach.
Best Towns for Foreigners Financing Real Estate in Costa Rica
If you’re wondering where to focus your search, these five towns are some of the most popular for expats and often have financing options available:
- Tamarindo: A lively surf town with everything from luxury condos to beachfront homes. Seller financing is sometimes offered in new developments.
- Playa Flamingo: Known for its marina and upscale vibe, some high-end properties qualify for VoloLoans.
- Playa Potrero: A laid-back community with rental potential. Great area to explore owner financing.
- Brasilito: Affordable and growing. Motivated sellers may be open to flexible terms.
- Playa Grande: Popular with surfers and conservationists. New builds and eco-projects occasionally offer financing.
Each of these towns has its own personality, but all are favorites among international buyers—and we’ve seen financing for foreigners in Costa Rica work in every one of them.
What to Expect During the Financing Process
When pursuing financing as a foreign buyer, it helps to understand how the process works. While some steps may vary depending on the financing method, here’s a general overview of what you can expect:
- Initial Consultation: Whether you’re working with a private lender like VoloLoans or negotiating seller financing, the process starts with understanding your goals, your financial position, and the type of property you’re looking to purchase.
- Required Documentation: Expect to provide a valid passport, proof of income, and bank statements. Some lenders, especially cross-border options, may request tax returns or credit reports.
- Agreement of Terms: This includes setting the down payment, loan duration, interest rate, and any special terms. With seller financing, the terms are often flexible and negotiable.
- Legal Review: A trusted Costa Rican attorney should always review the financing agreement. This ensures legal compliance and protects your ownership rights.
- Closing Process: Once terms are finalized, funds are transferred through a secure escrow service. After closing, the title is registered in your name or holding entity, and the property is officially yours.
This process may take anywhere from 30 to 90 days depending on the complexity of the financing. Our team at Costa Rica Real Estate CR is here to guide you every step of the way.
Final Thoughts on Financing for Foreigners in Costa Rica
Financing for foreigners in Costa Rica is more accessible than ever before. Whether you’re exploring seller financing, leveraging home equity, or applying through innovative lenders like VoloLoans, you have more flexibility than you might expect.
The key is having the right team behind you. At Costa Rica Real Estate CR, we specialize in working with international buyers, helping you identify properties that qualify for financing, walk you through legal and closing processes, and ensure a smooth, successful purchase.
📞 Ready to start your Costa Rica property journey? Reach out today and let’s explore your financing options together.