Financing the purchase of a luxury home in Costa Rica doesn’t have to be a complicated process. The LX Costa Rica team facilitates various financing options for purchasing luxury homes through our trusted partners. We provide access to solutions such as bank financing, private loans, owner financing, and purchase structuring to meet the unique needs of each client. As part of this effort, please explore the information below from BCT BANK, offering financing for foreigners purchasing real estate in Costa Rica.
BCT bank in Costa Rica offers comprehensive financial solutions. They have recently launched a program to help local and foreign buyers complete the purchase of their luxury home in Costa Rica. Explore various financing options with BCT below, including: Investment Refinancing, Debt Transfer, and Home Resales. The BCT team also explains the process and requirements for foreigners to obtain financing for a Costa Rica luxury home.
BCT offers 3 different financing options to finance up to 65% of the value of your future home as a foreigner, with competitive interest rates, for up to a 20-year term.
Our clients often come to us having already found the home of their dreams and secured a portion of the funds needed. Our role is to bridge that financial gap, providing the additional support required to help them achieve their homeownership goals.
Silvia Rodríguez, BCT BankFind your best fit: Programs for Financing your Luxury Home in Costa Rica
Its important to note that home financing in Costa Rica works differently for foreigners than for nationals. As long as the individual has a residence card in good standing, they can start the financing process, even if they are not currently residents. This is because the process starts with the appraisal of the property, and the client does not need to be present for this.
BCT works with a number of programs to fit their clients’ specific needs.
One program is designed for national first-time home buyers, offering increased financing up to 80%. Another program is a bridge loan, which allows clients to start financing the property even if they are still in the United States. Finally, the Costa Rica: your home away from home program allows you to buy a second home in Costa Rica as a foreigner, whether you want it for vacationing, renting or using it seasonally.
The Home away from Home program is of special interest to our clients, since many have their house in their home country but want a second one in tropical paradise. A very popular area for foreigners to look for homes is the beautiful province of Guanacaste. Guanacaste’s Pacific coast embodies the definition of Costa Rican beauty, with pristine beaches, sun-kissed weather, and stunning flora and fauna.
BCT offers to finance up to 65% of the value of your future home in Guanacaste as a foreigner, with competitive interest rates, for up to a 20-year term. BCT offers 3 financing options for this:
- 1
Investment Refinancing: For those who have paid cash for a home in the past year
- 2
Debt Transfer: For those who want to consolidate their balances with BCT.
- 3
Home Resales: For those who want to buy a home in a gated residential community.
Explore the Process and Requirements for Foreigners to Obtain Financing for their Costa Rica Luxury Home
The process of acquiring a home loan at BCT takes a 6 steps in 6 weeks approach. This process is designed to be as efficient and expedited as possible, with each step building on the previous one:
- 1
Client introduction
- 2
Pre-qualification for financing
- 3
Documentation and profile
- 4
Property appraisal
- 5
Insurance options
- 6
Closing the deal
Preparation
When preparing to apply for a home loan in Costa Rica, clients often begin the process by endorsing an existing life insurance policy. In general, this endorsement serves as a key step in demonstrating financial responsibility and stability towards the bank. Most international clients in Costa Rica already have a life policy in place. However, for those who don’t, it’s important to secure one before starting the financing process.
Process
Once the client completes this initial step, Banco BCT steps in to handle the rest of the process. Altogether, they conduct a thorough credit study and validation to assess the client’s financial health and loan eligibility. This comprehensive evaluation ensures that both the bank and the client are well-informed and prepared for the loan application process, making it smoother and more efficient.
The process begins with the client sending a questionnaire and documents for pre-qualification. All things considered, these documents include an affidavit, an income statement, and a debt statement. Clients must have a minimum annual income, have lived in Costa Rica for at least 12 months, and have a clear profile. BCT evaluates the client’s credit history and assigns a score. If the score meets the minimum requirement of 700 points, the client is then pre-qualified for the loan application.
Once pre-qualified, the client can then start the financing process. Clients can use the loan to purchase properties, with a preference for condos and residential areas.
A third-party appraiser analyzes the property’s value, assessing both its market value and internal value, considering its desirability for the bank. Clients do not need to pay for the appraisal until they complete the pre-qualification process.
The loan features a fixed interest rate for two years, and clients can make amortizations up to 10% annually without penalty. Additionally, after five years, clients can cancel half of the debt without penalty.
In general, BCT prioritizes clients who are about to buy or are in the process of buying, and they strive to provide a quick and efficient response to each client. Their team therefore emphasizes the importance of maintaining good relationships with clients and the need for clear communication throughout the process to help them achieve their home ownership goals in the best way possible.
