Can foreigners get a mortgage in Costa Rica?

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THE LATINVESTOR

A team specialized in real estate investing in LATAM countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Costa Rica. If you'd like to learn more about us, you can check our presentation page.

Can foreigners actually get a mortgage in Costa Rica?

Yes, foreigners can get mortgages in Costa Rica, but the process is more restrictive than most North American or European markets.

Several private Costa Rican banks offer mortgage products to foreign buyers, particularly those from the United States and Canada. BAC San José, Banco Lafise, and BCT are the primary institutions known to work with international clients as of September 2025.

The key difference lies in the requirements: foreign applicants face higher down payment demands, more extensive documentation processes, and typically longer approval timeframes compared to Costa Rican nationals. Banks approach foreign mortgage applications with additional caution due to the perceived higher risk of cross-border lending.

Non-resident foreigners can still access financing, though they'll encounter the strictest terms. The maximum loan-to-value ratio for non-residents typically caps at 50% of the lower amount between the appraised value and purchase price.

Most foreign buyers ultimately choose alternative financing methods due to these complexities, including cash purchases, seller financing, or private lending arrangements.

Which banks or lenders are known to work well with foreign buyers?

BAC San José stands out as the most foreign-friendly bank in Costa Rica's mortgage market.

The institution has established dedicated processes for international clients and maintains English-speaking staff to assist with complex documentation requirements. They offer USD-denominated loans, which eliminates currency exchange risks for American and Canadian buyers.

Banco Lafise also actively works with foreign buyers, particularly those who can demonstrate stable income sources from North America. They've developed streamlined procedures for processing foreign income documentation and credit reports.

BCT (Banco de Costa Rica) provides mortgage products to foreigners, though their approval process tends to be more conservative and time-intensive compared to the private banks.

It's something we develop in our Costa Rica property pack.

Is residency required to get a mortgage or is it optional?

Residency is optional but provides significant advantages in Costa Rica's mortgage market.

Non-residents can obtain mortgages from select banks, but they face stricter lending terms including higher down payments of 35-50%, lower loan-to-value ratios, and more extensive documentation requirements. The approval process for non-residents also takes considerably longer, often several months.

Legal residents with DIMEX cards enjoy substantially better mortgage conditions. They can secure financing with down payments as low as 25%, access to higher loan-to-value ratios up to 75%, and faster approval processes typically completed within 4-8 weeks.

Banks view resident status as a strong indicator of long-term commitment to Costa Rica, reducing their perceived lending risk. Residents also have established local credit histories and banking relationships, which streamline the underwriting process.

The documentation burden for residents is also lighter, as they don't need to provide translated and apostilled documents from their home countries for basic banking relationships.

If I'm married to a Costa Rican citizen, does it make the process easier?

Marriage to a Costa Rican citizen can facilitate the mortgage process, but only if it leads to legal residency status.

The marriage itself doesn't automatically qualify you for better mortgage terms unless you've obtained legal residency through your spouse. Once you secure residency and receive your DIMEX card, you'll access the same favorable lending conditions available to other legal residents.

Some banks may consider your spouse's local income and credit history as part of the joint application, potentially strengthening your overall financial profile. This combined approach can help meet income requirements and demonstrate local ties to Costa Rica.

However, if you remain a non-resident despite being married to a Costa Rican, you'll still face the same strict lending criteria as other foreign buyers. Banks don't offer preferential treatment based solely on marital status without corresponding legal residency.

The residency process through marriage typically takes 6-12 months to complete, so plan accordingly if you're considering this path to improve your mortgage prospects.

Is it possible to get a mortgage as a non-resident?

Yes, non-residents can obtain mortgages in Costa Rica, though with significant limitations and stricter requirements.

BAC San José, Banco Lafise, and select private lenders offer mortgage products to non-resident foreigners, primarily targeting buyers from the United States and Canada. The key constraint is the maximum loan-to-value ratio, which typically caps at 50% for non-residents.

Non-resident applicants must provide extensive documentation including multiple years of tax returns, certified financial statements, credit reports from their home country, and proof of stable income sources. All foreign documents require apostilled translations into Spanish.

The approval process for non-residents extends significantly longer than resident applications, often taking 3-6 months from initial application to funding. Banks require additional time to verify foreign income sources and conduct enhanced due diligence.

Private lenders offer more flexible terms for non-residents, often approving loans within 7-10 business days, though at higher interest rates typically ranging from 10-16% compared to traditional bank rates of 7-10%.

What type of visa counts as legal residency for mortgage purposes?

Legal residency for mortgage purposes requires a DIMEX card, which is issued to holders of specific residency categories.

Residency Type	Investment Requirement	Income Requirement	Mortgage Eligibility
Rentista	None	$2,500/month guaranteed income	Full access
Pensionado	None	$1,000/month pension	Full access
Inversionista	$150,000 minimum investment	None	Full access
Marriage-based	None	None	Full access
Tourist/Temporary Visa	N/A	N/A	Non-resident terms only

The Inversionista category requires a minimum investment of $150,000 as of 2025, which can include real estate purchases. This creates a pathway where buying property can simultaneously establish residency and improve future financing options.

Rentista status requires demonstrating $2,500 monthly guaranteed income for at least two years, while Pensionado status needs $1,000 monthly pension income. Both provide full access to resident-level mortgage terms.

It's something we develop in our Costa Rica property pack.

What documents do I need to prepare to apply?

Mortgage applications in Costa Rica require comprehensive documentation packages, particularly for foreign applicants.

Essential documents include a valid passport, DIMEX card if you're a resident, and three years of complete tax returns from your home country. Banks also require certified financial statements prepared by a CPA, along with three months of recent bank statements showing consistent income deposits.

Credit documentation includes at least two credit reports from your home country, typically one from each major bureau. These reports must be recent, usually within 90 days of application submission.

Property-related documents include the purchase agreement, professional property appraisal (costing $500-$1,000), and current utility bills for address verification. If the property is held through a corporation, you'll need complete corporate documentation including articles of incorporation and current standing certificates.

Self-employed applicants face additional requirements including business registration documents, profit and loss statements, and potentially business bank statements for the past 12-24 months.

1. Valid passport and DIMEX card (if resident)2. Three years of tax returns from home country3. CPA-certified financial statements4. Three months of bank statements5. Two credit reports from home country6. Professional property appraisal7. Purchase/sale agreement8. Proof of address (utility bills)9. Income verification (pay stubs or business documentation)10. All foreign documents apostilled and translated to Spanish

What are the typical down payment percentages in Costa Rica?

Down payment requirements in Costa Rica vary significantly based on your residency status and chosen lender.

Legal residents with DIMEX cards typically face down payment requirements of 25-30% for traditional bank mortgages. This represents the most favorable terms available in the Costa Rican market and reflects banks' confidence in resident borrowers.

Non-residents encounter substantially higher down payment demands, typically ranging from 35-50% of the property's purchase price. Some conservative banks may require up to 60% down for non-resident applicants, particularly for higher-value properties or borrowers with limited local ties.

Private lenders offer more flexible down payment terms, often accepting 20-30% down regardless of residency status. However, these lower down payments come with higher interest rates and shorter loan terms.

Seller financing arrangements typically require 50% down payment, reflecting the higher risk sellers assume when acting as lenders. This option often provides the fastest path to property ownership for foreign buyers.

What are the usual interest rates and repayment terms offered?

Interest rates in Costa Rica's mortgage market vary based on currency, lender type, and borrower profile.

USD-denominated loans from traditional banks typically carry interest rates between 7-10% for qualified borrowers as of September 2025. These rates apply to both residents and non-residents, though non-residents may face rates at the higher end of this range.

Colón-denominated loans often carry higher interest rates due to currency risk, typically ranging from 9-12%. Most foreign buyers prefer USD loans to avoid exchange rate exposure.

Traditional banks offer loan terms up to 20 years for residential mortgages, though 15-year terms are more common for foreign borrowers. Monthly payments must include mandatory life insurance premiums, adding approximately 0.5-1% to the effective cost.

Private lenders typically offer shorter terms of 3-15 years with interest rates ranging from 8-16%, depending on the borrower's profile and down payment amount. These higher rates reflect the faster approval process and more flexible underwriting criteria.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Costa Rica versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Can I use collateral, either local or abroad, to secure the loan?

Costa Rican lenders exclusively accept local real estate as collateral for mortgage loans.

Banks require the financed property itself to serve as primary collateral, and any additional collateral must be titled real estate located within Costa Rica. Foreign property, including homes in the United States or Canada, cannot be used to secure Costa Rican mortgages.

This restriction stems from practical enforcement challenges - Costa Rican courts cannot effectively seize foreign assets, making overseas collateral worthless for local lenders. Banks need collateral they can readily access and liquidate through the Costa Rican legal system.

For borrowers seeking to leverage foreign assets, the preferred approach involves securing a home equity loan or line of credit in their home country, then using those proceeds for a cash purchase in Costa Rica. This strategy avoids the collateral restrictions while potentially accessing better interest rates.

Additional Costa Rican properties can serve as collateral for larger loan amounts or multiple property purchases, provided clear title and proper documentation exist.

How long does mortgage approval usually take from start to finish?

Mortgage approval timelines in Costa Rica vary dramatically based on lender type and borrower documentation completeness.

Traditional banks typically require 6-12 weeks for complete mortgage approval and funding, though complex cases involving foreign income verification can extend to 4-6 months. The process includes document review, property appraisal, underwriting, and final approval stages.

Private lenders offer significantly faster approval processes, often completing the entire cycle within 7-10 business days. This speed comes from streamlined underwriting processes and reduced documentation requirements, though at higher interest rates.

Non-resident applications generally take longer than resident applications due to additional verification requirements for foreign income sources and credit histories. Banks must validate information across international borders, adding complexity and time.

The property appraisal process alone typically requires 2-3 weeks, as qualified appraisers are limited and scheduling can be challenging, particularly in rural areas or during peak buying seasons.

What are the main alternatives to getting a mortgage in Costa Rica?

Several financing alternatives exist for foreign buyers who prefer to avoid traditional Costa Rican mortgages.

1. **Cash purchases** - The most common approach for foreign buyers, eliminating financing complications and often securing better purchase prices through negotiation leverage2. **Seller financing** - Property owners act as lenders, typically requiring 50% down with 1-5 year terms at 6-9% interest rates3. **Home equity loans from home country** - Leverage existing foreign property to secure cash for Costa Rican purchases, often at better rates than local financing4. **Private mortgage lenders** - Local companies offering faster approval (7-10 days) with more flexible terms but higher rates (8-16%)5. **Bridge loans** - Short-term financing for buyers awaiting liquidity events like home sales in their country of origin

Cash purchases remain the preferred method for approximately 70% of foreign buyers as of September 2025. This approach eliminates currency risk, complex documentation requirements, and lengthy approval processes while often securing 5-10% discounts on purchase prices.

Seller financing has gained popularity as property owners seek steady income streams in an uncertain economic environment. These arrangements often feature more flexible terms than traditional bank loans, though typically require larger down payments.

It's something we develop in our Costa Rica property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Costa Ballena Property - Mortgages Available to Foreigners
2. CB Pacific Realty - Foreigner Mortgage Guide
3. RE/MAX Ocean Surf - Financing for Foreigners
4. BAC Credomatic - Foreigners Landing
5. OSA Tropical Properties - Real Estate Financing
6. Flamingo Beach Realty - How to Finance a House
7. GAP Equity Loans - Mortgage Requirements
8. GAP Equity Loans - Expat Mortgage Difficulty
9. CRIE - Financing Property Expert Guide
10. GAP Equity Loans - Understanding Financing for Foreigners