Financing Available With 2CR: Your Path To Property Ownership With Second Street

By Nathalia Romero, Copywriter and Real Estate Writer 09/29/2025

For many Americans, owning property in Costa Rica has long been a dream hindered by limited financing options. The lack of easily accessible mortgages discouraged potential buyers from investing in the market, regardless of whether the marketplace was full of attractive estates.

Second Street, in partnership with a U.S. mortgage institution, now offers U.S.-style financing for Costa Rican properties — giving Americans reliable and transparent access to Costa Rica real estate.

Second Street recently provided the 2CRRE team with a detailed overview of its financing model, highlighting the main aspects:

The Origin Story: Bridging a Critical Gap

Second Street's founder, CEO Zachary Kay, experienced firsthand the challenges of seeking to purchase property in Costa Rica. Even highly qualified US purchasers who had solid financial backgrounds were unable to qualify for financing. Local banks simply did not provide financing to non-residents, and the few alternatives that were available were either overly expensive or difficult. This revelation motivated the founding of Second Street, a firm dedicated to bridging the gap and providing reliable, US-backed mortgage alternatives to Costa Rica.

Recognizing a market gap, Zachary aimed to make Costa Rican real estate accessible to more international buyers. Since then, the financial landscape for Americans looking to invest in Costa Rican real estate has undergone a significant transformation with the introduction of diversified mortgage solutions.

Second Street: More Than Just Home Purchase Loans

• Home Purchase Loans: Financing is available for completed residential properties, including primary residences, vacation homes, and investment properties.
• Refinancing and Cash-Out Options: Existing homeowners can refinance their Costa Rican property to take advantage of better rates or access cash for renovations, investments, or other needs. Cash-out refinancing allows buyers to unlock the equity in their property.
• Financing for U.S. Citizens: Loans are currently available to U.S. citizens and permanent residents. This focus ensures that buyers have the legal and financial standing needed to qualify for a U.S.-style mortgage. Buyers can make milestone payments during construction and receive financing when the property is ready.
• U.S.-Based Payment System: All mortgage payments are made from a U.S. bank account, eliminating the need to open a Costa Rican account. Payments can be set up on autopay, making it easy for buyers to manage their loans from abroad.

Financing Properties in Costa Rica: The Benefits of U.S.-Style Mortgages

U.S.-Style Mortgages: Predictability and Flexibility

The 30-year, fixed-rate mortgage is one of the biggest innovations Second Street delivers to the Costa Rican market. Second Street offers its clients the option to lock in an interest rate for the duration of their loan or refinance if the interest rate drops, in contrast to the majority of local banks that usually offer variable-rate loans with shorter time frames. This entails consistent monthly payments, long-term financial stability, and the assurance to make plans free from the fear of unexpected rate increases.

Second Street helps American buyers access, forecast, and secure real estate by integrating Costa Rica's financing alternatives with the strategies and advantages of the U.S. mortgage system. Similar to domestic mortgages, interest paid on these loans may be tax-deductible in the United States. Another financial advantage is that Second Street offers the necessary documentation to make tax filing simpler for its U.S. clients.

No Prepayment Penalties: True Financial Freedom

Traditional Costa Rican mortgages include significant early repayment penalties, which could amount to up to 3% of the total. This prepayment penalty discourages borrowers from paying off the loans sooner or refinancing when lower interest rates become available. Second Street takes a different approach: clients are not penalized for paying off or refinancing their loans early. This revolutionary flexibility benefits buyers looking to capitalize on shifting market conditions or those with extra funds who wish to pay off their debts. This approach empowers the borrowing party and brings the Costa Rican mortgage market in line with US best practices.

A Streamlined, Transparent Process

Second Street ensures a smooth homeownership journey by starting with a pre-approval, eliminating any surprises during underwriting. Buyers know their precise borrowing limit before they begin their property search, which makes the entire process faster, simpler, and more efficient for both sellers and real estate agents. The Second Street team helps clients at every stage, from collecting documentation to closing on the house.

Compliance and Security: U.S. and Costa Rican Standards

Second Street is fully registered and compliant with both U.S. and Costa Rican financial regulations. This dual compliance means that buyers can trust the process, knowing it meets the highest standards of transparency and reliability. The company’s institutional backing by a publicly listed U.S. mortgage lender adds another layer of credibility and oversight. Second Street operates as a Costa Rican company registered with the local financial regulator, SUGEF, ensuring that all loans are structured and managed according to local laws. Buyers mitigate legal risks and uncertainties inherent in cross-border transactions.

Trust Structure: Protecting Buyers and Minimizing Costs

In Costa Rica, it is common for mortgage-financed properties, especially those funded through private lenders or specialized institutions, to be held in an independent trust (fideicomiso de garantía) rather than directly in the borrower’s or lender’s name. Second Street follows this practice by working with a third-party trust firm to hold the property as collateral. This structure protects both the buyer and the lender by clearly defining rights and obligations. In many cases, it can reduce transfer taxes at closing since the property remains in the trust until the loan is fully repaid. Familiar to many U.S. buyers as a “deed of trust,” this arrangement provides efficiency, security, and legal clarity.

Impact on the Costa Rican Real Estate Market

The introduction of U.S.-style financing is set to revolutionize the Costa Rican real estate market. Previously, the requirement for all-cash purchases limited property acquisition to only those with substantial liquid assets. With accessible financing, demand is expected to increase, leading to a faster-moving market and higher property values. This shift benefits all stakeholders: sellers will experience quicker sales, buyers will have greater purchasing power, and developers can attract a wider range of eligible customers for new projects by offering diverse financing options. Accessible financing increases purchasing power by allowing buyers to leverage their available cash as a down payment, enabling them to afford higher-value properties than they could through cash alone. This evolution presents a win-win situation for everyone involved.

A Game Changer for Costa Rican Real Estate

My Second Street is revolutionizing the Costa Rican homeownership process for American purchasers. More individuals than ever before may now realize their goal of owning real estate in paradise thanks to the introduction of U.S.-style financing alternatives. With its dedication to openness, legal compliance, and top-notch customer service, Second Street establishes a new standard in the industry, empowering purchasers, bolstering brokers, and promoting expansion across the Costa Rican real estate market.

Real Estate in Costa Rica Is Now Financeable with 2Costa Rica Real Estate and Second Street

At 2Costa Rica Real Estate, we support the launch of Second Street financing as a progressive approach that raises the bar for market integrity and expands the pool of potential buyers in Costa Rica. This model gives sellers and developers the assurance of a clear, safe process while enabling a larger pool of suitable purchasers to participate by eliminating long-standing obstacles. It's a revolutionary development that positions Costa Rica as a trustworthy and accessible market for owning upscale luxury vacation property as well as main residences.