“There are many things that are evolving and changing in the Costa Rica real estate marketplace, but perhaps none more significant than the expansion of the bank and private financing options in this marketplace. The single largest barrier of entry to investment in Costa Rica is being systematically removed by these streamlined and increasingly affordable traditional mortgage options, and the impact on the marketplace is already starting to manifest. As prime rates in the USA drop, so will rates in CR, and the potential for market expansion is exponential."
— Scott Cutter, 2CRRE Managing Broker
Seller financing is common in Costa Rica, especially outside major cities, and is one of the many common financing options. The seller acts as the lender, accepting a down payment and direct installment payments over an agreed term. Terms, including interest rate, schedule, and length, are negotiated directly between buyer and seller, which can make this option advantageous for both sides.
Typically seller financing includes larger down payments (25%-50%) at the closing and shorter terms, functioning more as bridge loans than long-term financing solutions like those of the local banks or international lenders. That being said, interest rates and terms are often more flexible for buyers just needing a bit more time vs. a long-term financing solution, which is common and can be a win/win for both parties.
Some developments offer pre-construction financing, replacing upfront loans with installments tied to construction milestones. Terms like down payments, schedules, and delivery timelines vary widely by project.
