My name is Michael Simons and I’m a professional Realtor here in Playa Hermosa, Guanacaste, Costa Rica known as the Papagayo.
I’ve been a fulltime permanent resident since 2003 and I’m licensed with Costa Rica Guanacaste Association of Realtors. Nobody works harder for their clients than I do and nobody sells more real estate than I do.
Can I Get A Mortgage in Costa Rica To Buy My New Home?
I have helped thousands of people purchase an investment property or relocate to our little paradise. I will answer all your emails. I will answer all your questions and I will be there for you not just to sell you your property but after.
And most important, I will become your friend. Hope you join us. One of the most common questions obviously is, “Is there financing in Costa Rica?” and the answer is no.
Unfortunately, a foreigner cannot get a loan in Costa Rica. Now, even if you were capable of getting a loan in Costa Rica, you probably wouldn’t want the rates as Costa Rica interest rates can be upwards of 10 or 12 percent a year.
In my opinion, this is very positive because what it means is all the investment that’s coming to Costa Rica is cash. No one is leveraging their properties. No one is putting themselves in a position where they have to make a monthly mortgage payment. So as my friend Tim says, you have to pay to play.
It makes it very simple. You can tell me exactly how much money you have and I can help you find the best properties in that particular price range. But obviously not all of us are just sitting on cash.
Many of us have to sell our home back home or maybe some other money that’s coming in, in another way, shape or form. Many sellers will accept short-term financing.
Just recently I sold a condominium for approximately $300,000. The buyer put $150,000 down and we closed on the property. The balance of the $150,000 was amortized over 20 years, meaning it was based on a 20-year loan, so the payments were very, very low at a very reasonable interest rate.
Then in three years, he has a balloon payment where he must pay the balance off. That gives my client time to sell their property back home, sell some stocks, make some more money, whatever their situation might be.
There is also another avenue for obtaining money and that’s using what’s called a self-directed IRA.
Come on down baby!
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Article/Property ID Number 5488
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