How to Finance Property in Costa Rica | 6 Options for Foreign Buyers and What Each Actually Costs

You found the place. Now comes the question every North American buyer asks: can I get a loan for this?

Yes. Financing property in Costa Rica as a foreigner is possible, but it does not work like a U.S. mortgage. Down payments are bigger, and the best option depends on what you already own back home.

Here are the six real options and what each costs.

Costa Rica Mortgage for Foreigners: Can You Get One?

Yes. A Costa Rica mortgage for foreigners is available from a local bank or from a U.S.-based lender that now lends in Costa Rica. Expect to put 20% to 40% down, with loan terms of 15 to 30 years, according to Coldwell Banker Vesta Group's 2026 financing guide.

The 6 Ways to Finance Property in Costa Rica

1. Cash

No loan fee and no interest, but cash is not free. That money is not invested elsewhere.

What it costs: Your closing costs only. See our breakdown of Costa Rica closing costs.

Pros

• Fastest path to closing
• Strongest negotiating position with sellers

Cons

• Ties up a large share of your net worth in one asset

2. Costa Rican Bank Mortgage

Banco LAFISE, for example, offers home loans up to 30 years and typically finances up to 70% of the property's value, or up to 80% through its private banking program, per a July 2026 Coldwell Banker Costa Rica review.

What it costs: Rates run about 7.5% to 10% as of March 2026, per Century 21 Costa Rica. They are usually variable, with the rate fixed for only 2 to 5 years. Loan fees are about 1.5% of the loan, and prepayment penalties can apply in the first 7 to 10 years, according to RE/MAX Costa Rica. Life and property insurance are required.

Pros

• Loan is secured by the Costa Rica property, not your U.S. home

Cons

• Variable rates after the short fixed period
• Heavy paperwork and slower approvals

3. U.S.-Based Cross-Border Lender

Second Street entered Costa Rica in December 2024 and offers 30-year fixed-rate loans in dollars, per law firm ECIJA. Coldwell Banker Costa Rica reports Second Street generally requires 25% down, a 720 FICO score, and a $150,000 minimum loan, with closing in four to six weeks. Volo Loans states that no Costa Rican credit history is required and closings can happen in as little as 45 days, on its own site.

What it costs: Neither lender publishes a Costa Rica rate. Get a written quote. For context, the U.S. 30-year fixed average was 7.40% as of October 8, 2026, per Freddie Mac.

Pros

• True 30-year fixed rates
• Familiar U.S.-style application

Cons

• Generally limited to U.S. citizens and permanent residents
• High credit score bar

4. Home Equity From Your Home Country

Many buyers tap their U.S. or Canadian home with a HELOC (home equity line of credit) or cash-out refinance, then buy in Costa Rica as cash buyers.

What it costs: The national average HELOC rate was 7.34% as of October 14, 2026, according to Bankrate. Most HELOCs are variable.

Pros

• No Costa Rican lender approval needed
• Works for Canadians who don't qualify for U.S. cross-border loans

Cons

• Your primary home is the collateral
• Variable rates can rise

5. Seller (Owner) Financing

The seller carries the loan. You pay monthly, then pay off the balance in one lump sum (a balloon payment).

What it costs: Typical terms are 30% to 50% down at 6% to 12% interest, with the balloon due in 3 to 7 years, per RE/MAX Costa Rica.

Pros

• Little paperwork, negotiable terms

Cons

• The balloon payment forces you to refinance or pay cash within a few years
• Only some sellers offer it

6. Private Lenders

Private lenders move fast when banks won't.

What it costs: About 10% to 15% interest, roughly 50% down, and 2- to 5-year terms, with closings in under three weeks, per Century 21 Costa Rica. Get every term in writing.

Pros

• Fast, flexible decisions

Cons

• Highest rates of the six options
• Short terms mean refinancing soon

What the Numbers Look Like: An Illustrative Scenario

Consider a couple from Denver buying a $700,000 home in Playa Negra, Guanacaste.

1. Costa Rican bank loan at 70%: They put $210,000 down and borrow $490,000 over 25 years. At 7.5%, the payment is about $3,621 a month. At 10%, it climbs to about $4,453. The 1.5% loan fee adds roughly $7,350 at closing.
2. HELOC plus savings: They draw $200,000 against their Denver home and add $500,000 in savings. Interest-only payments on the HELOC at 7.34% run about $1,223 a month, but now their Denver home is on the line.

Cash needed at closing: about $217,350 on the bank route versus $500,000 on the HELOC route, plus closing costs. Neither is "best." The question is where you want the risk to sit.

How to Line Up Financing in 7 Steps

1. Pull your credit score. Cross-border lenders such as Second Street want 720 or higher.
2. Gather documents early. Plan on two years of tax returns and three months of bank and card statements, per RE/MAX Costa Rica.
3. Get quotes from two lender types. Compare one Costa Rican bank against one U.S.-based lender or your HELOC rate.
4. Ask each lender what property types qualify. Confirm before you make an offer, especially for co-ownership shares, lots, or pre-construction homes.
5. Hire an independent Costa Rican attorney. They should review any loan, seller note, or private lending agreement.
6. Budget for loan costs at closing. Plan for the lender's appraisal, loan fees, and required insurance on top of standard closing costs.
7. Build financing into your timeline. Costa Rican banks take 60 to 90 days, per Century 21 Costa Rica, while Volo cites 30 to 60 days. See our guide to buying property in Costa Rica and the 12-month timeline.

Choosing Your Financing Path

Financing property in Costa Rica comes down to three questions: how much cash you can put down, whether you qualify for a U.S. cross-border loan, and where you want the risk to sit. If you're weighing a home at Black Coast Estates, a 42-home private community in Playa Negra, explore The Residences and book a call to walk through how your financing fits the purchase.

Frequently Asked Questions

Can a U.S. citizen get a mortgage in Costa Rica?

Yes. U.S. citizens can borrow from Costa Rican banks or from U.S.-based lenders such as Second Street and Volo that now lend on Costa Rica property. U.S. lenders use your U.S. credit history, so no Costa Rican credit is needed. Expect at least 25% down with a U.S. lender, per Coldwell Banker Costa Rica.

How much down payment do you need to buy in Costa Rica?

Plan on 20% to 40% down for a bank loan. Costa Rican banks commonly finance 60% to 70% of appraised value, per Century 21 Costa Rica. U.S. cross-border lenders generally want 25% down. Seller financing often asks for 30% to 50% down, though terms are negotiable, per RE/MAX Costa Rica.

What are mortgage interest rates in Costa Rica?

Costa Rican bank rates run about 7.5% to 10% and private lenders about 10% to 15%, per Century 21 Costa Rica's March 2026 guide. Bank rates are usually variable after a 2- to 5-year fixed period, and seller financing typically runs 6% to 12%, per RE/MAX Costa Rica. U.S.-based lenders Second Street and Volo do not publish Costa Rica rates, so request a written quote.

Can Canadians get a Costa Rica mortgage?

Canadians can apply with Costa Rican banks, but U.S.-based cross-border lenders such as Second Street and Volo generally limit loans to U.S. citizens and permanent residents, per Coldwell Banker Costa Rica. Canadians who don't qualify can draw on home equity in Canada and buy in Costa Rica as cash buyers.

How long does it take to get a mortgage in Costa Rica?

U.S.-based lender Second Street reports four to six weeks for qualified buyers, per Coldwell Banker Costa Rica. Costa Rican banks typically take 60 to 90 days, private lenders under three weeks, and seller financing 7 to 15 days, per Century 21 Costa Rica.

Can you finance a co-ownership share or pre-construction home in Costa Rica?

It depends on the lender, and the published lender terms reviewed here do not say either way. Before making an offer, ask each lender in writing whether it will lend on a co-ownership share or a home still under construction. Paying cash or using home equity from your home country avoids this question entirely.

Do Costa Rican banks lend in U.S. dollars or colones?

Both. Banco LAFISE, for example, offers home loans in U.S. dollars or colones, per Coldwell Banker Costa Rica. U.S.-based lenders such as Second Street lend in dollars. Borrowing in the currency you earn in avoids exchange-rate risk on every payment.