Finance Options

Personalized for You

Land ONLY – No Qualification required

Our standard payment plan is 50% to reserve a lot and 50% can be financed for up to 3 years at a 10% annual simple interest rate. Speak to your representative for more information regarding terms and incentives that may currently be offered as there may be other flexible financing arrangements which can be made at time of purchase depending on individual circumstances. This loan is completely open and can be paid off at any time without penalty or further interest. Payments can be made monthly, bi-monthly or quarterly.

A $250 Administration Charge will be added to the first payment to set up land financing. If no financing is required and full payment is made within 45 days of contract signing, a 5% discount will apply.

Land & Construction or Construction Only – Qualification required

Mortgage Loan Parameters:

Loan amount: Up to 75% of appraised price (If the land is fully paid for, it is possible to finance 100% of construction)
Credit score: Minimum of 680
Debt-to-income ratio: 40-50 % of Net Income (Combines credit report debt with proposed payments in Costa Rica to determine total amount of debt, calculated against income)
Amortization/Term: 20-25 years (Dependent on lender chosen)
Interest rate: 8.25% - 9.0 % (Estimate based on current market conditions)
Life insurance policy: Required by most lenders (Options do exist without this requirement)

The documents required and process for approval is very similar to the mortgage process in the United States and Canada and a “yes” or “no” response will be provided within 3-5 business days.

Required Documents for Initial Approval:

Completed mortgage loan application signed (1003 form will be provided to you)
Bank statements and/or brokerage accounts (last 6 months)
Current Pay stubs if wage earner (1 month)
Copy of passport (All Pages)
Copy of Driver’s License
Last 2 years US W-2, T-4 for Canadians
Last 2 years tax returns, including up-to-date balance sheets and profit & loss statements if self employed. T-1’s for Canadians
If you are self employed, a letter from a Costa Rican CPA will be required stating gross and net income earned over the last 12 months. (Further info provided if this is necessary)

Once you receive the initial approval, an appraisal will be ordered and other documents more specific to the property and/or construction will be required. After these steps are finalized, a closing date is set.

Mortgage Loan Costs (Initial and Closing):

Application Fee: $299 for US Residents, $344 for Canadian Residents*
Legal fees: 0.75 % of loan amount
Bank commission: 3.25% of loan amount
Appraisal (estimated): $600 (Payable after initial approval is complete)
Trust Management Fee: $100
Fire/Disaster Insurance: .0025% of home value (1 year payable in advance at closing)
Tax’s: .0025% of total property value (Current estimate)
Title Insurance: .50% - 1.0% (Required by many lenders, but not all)

*Canadian Residents have a higher fee since the charge for obtaining Canadian credit reports is more.

Example Mortgage Loan Amounts:

Based on a 75% Loan to Value (LTV) at 8.25%* APR, 25 year amortization
Construction Price: $150,000.00
Loan amount (LTV): $112,500.00
Mortgage amount: $887.01/month
Based on a 75% Loan to Value (LTV) at 8.25%* APR, 25 year amortization
Construction Price: $250,000.00
Loan amount (LTV): $187,500.00
Mortgage amount: $1,478.34/month
Based on a 75% Loan to Value (LTV) at 8.25%* APR, 25 year amortization
Construction Price: $350,000.00
Loan amount (LTV): $262,500.00
Mortgage amount: $2,069.68/month

*Average interest rate, could be lower or higher depending upon credit rating, loan amount or amount borrowed. Quarterly adjusting rates on average are 0.50-0.75% less than a fixed loan for 5 years and are available as well.

NOTE: All personal and financial information will be kept strictly confidential.

For more information, please contact our Finance Manager.