For most US and Canadian non-resident Buyers, getting a mortgage in Costa Rica was nearly impossible. Not anymore!
In the last few years, the lending market in Costa Rica has evolved considerably, with more options for non-resident Buyers – and especially for Canadians. Here‘s more about my two most recommended lenders.
There are two standout lenders in particular that I am recommending to my clients. Let’s start with Volo Loans out of Salt Lake City, UT, because they offer lending products to both USA and Canadian citizens. Volo Loans is a USA-based lender that offers its clients the “…the security, simplicity, and speed of the US homebuying process.” They offer US citizens:
- Loans funded in $USD and serviced in the United States
- 30-year amortizations
- No life insurance required
- No pre-payment penalties
- Up to 75% LTV on purchases and refinances
- 30 year fixed; 5/6 Adjustable; 7/6 Adjustable
- Rates as low as 9%
- 45 day closings
Click here to download their fact sheet for US citizens.
Volo Loans now offers Canadian citizens who are looking for financing the following:
- Loans funded in $USD and serviced in the United States
- 30-year amortizations
- No life insurance required
- No pre-payment penalties
- Up to 75% LTV on purchases and cash-out refinances
- 40% Max Debt-to-Income
- 30-year fixed; 5/6 Adjustable; 7/6 Adjustable
- (Interest rate upon request)
- Loan amounts starting at $100,000 up to $5 million
- Closings in as little as 60 days
- Approved for British Columbia, Alberta, Saskatchewan, Manitoba, Ontario
Click here to download their fact sheet for Canadian citizens.
With Volo Loans both USA and Canadian citizens can obtain North American style financing here in Costa Rica. Borrowers can prequalify by filling out a form on the Volo Loan website. One of their loan officers will then reach out and give them a personalized quote.
USA citizens have another option for financing their real estate purchase here on Costa Rica with Second Street – a relative newcomer on the scene. Again, their loans are US-style with no hidden fees or surprises. Second Street claims it has “the largest and most secure funding of any lender in Costa Rica.” Second Street offers USA citizens AND permanent residents:
- Loans in $USD
- Interest rates as low as 8.25% for a 30-year fixed-rate mortgage
- Minimum loan amount of $150,000
- Up to 75% LTV
- Closing costs between 4% - 5%
- No pre-payment penalties
- Standard US tax benefits
- No unusual lending requirements
Click here to download the Second Street fact sheet.
In the past, USA and Canadian buyers who needed financing had to leverage equity back home for a mortgage, second mortgage, or line of credit in order to pay cash for their purchase here in Costa Rica. With the arrivals of Volo Loans and Second Street, these foreign buyers now have increased options for realizing their dream purchase, whether it be a primary residence, second home, or investment property.