US Style Mortgages Have Arrived in Costa Rica: What is the Market Offering?

Is this a new era for Property Financing in Costa Rica?

For years, real estate transactions in Costa Rica have been driven primarily by cash purchases or short-term, variable-rate loans issued by local banks (which continues to be a viable option). However, these often conclude after a lenghy process and additional requirements for foreign buyers that want to buy property using financing in Costa Rica. 

Today, Quatro Legal can offer the US Style Mortgages to US Citizens & Residents; therefore, we can assure that the status quo is changing. As the market becomes more broad, so does the availability of financing options and with this the U.S.-style mortgage products have entered the Costa Rican market, offering long-term, fixed-rate financing in U.S. dollars under underwriting standards familiar to North American borrowers. 

This development represents a significant step forward for both individual buyers and international investors as it makes the process streamlined and adjustable to U.S. standards while still maintaining the appeal of purchasing a property in Paradise. 

What Are “U.S.-Style” Mortgages?

These “new” mortgage products introduce terms that resemble the U.S. lending model, including:

• Familiar Terms: Fixed rates, clear repayment schedules, and amortizations that mirror U.S. mortgages.
• Fast Approvals: US Style mortgage can be closed within weeks and shorter closer spans than local banks. 
• Legal Security: Every loan is structured and registered in Costa Rica.
• Term: Up to 30 years 
• Interests rates: Competitive fixed rates from 8-9%. 
• Loan to Value: LTV up to 50%
• Loan Amounts: Loan amounts from US$150,000–$2,000,000.
• Requirements: Eligibility is based on U.S. or international income rather than local banking history and credit scores play a big role. 

This type of financing is generally available for completed residential properties, such as houses and condominiums, whether intended for personal use or rental investment in Costa Rica. 

While construction loans remain limited for now, they can still be pursued through traditional channels within the national banking system or private lenders. That said, new products tailored for construction and development projects are expected to enter the market soon as the sector continues to evolve.

Why This Matters?

The introduction of U.S.-style mortgages is transforming access to property ownership in Costa Rica, particularly for United States Citizens and residents as they can follow regulations and procedures similar to what they are used to. 

• Predictable, Long-Term Financing: Borrowers can now secure fixed-rate loans for up to 30 years, eliminating the uncertainty associated with Costa Rica’s traditional variable-rate structures.

• Lower Cash Requirements: Buyers no longer need to rely entirely on liquid capital. Loan-to-value ratios of  up to 50% allow greater financial flexibility and portfolio diversification.

• Familiar Process for Foreign Buyers: Application and underwriting standards mirror those used in North America, including credit verification, income documentation, and property appraisal.

What are key considerations?

While these new products open opportunities, there are important factors to keep in mind:

• Eligibility: Most products target borrowers with verifiable foreign income, U.S. residency or positive credit scores.
• Interest Rates: Although fixed, rates are generally higher than U.S. domestic loans, reflecting jurisdictional risk.
• Currency Exposure: Loans are in USD.
• Collateral Requirements: Clear property title and compliant corporate or trust ownership structures are essential.
• Property Readiness: Financing is typically available for completed properties, not raw land or construction.

What are the legal and structuring Implications and how Quatro can help?

At Quatro Legal, we are advising both investors and developers adapting to this evolving lending environment through these topics:

• Collateral Structuring: Ensuring ownership entities (corporations or trusts) align with lender requirements for mortgage security.
• Due Diligence: Reviewing property title, zoning, and registry compliance for lender approval as the underwirtting is subject to a thorough due diligence. 
• Tax Treatment: Assessing withholding obligations on foreign interest payments and the implications for rental or resale income.
• Escrow Coordination: Structuring escrow and disbursement procedures compliant with both Costa Rican and international banking standards.

The arrival of U.S.-style mortgage products marks a transformative moment for Costa Rica’s real estate market. For the first time, buyers and investors can access long-term, fixed-rate financing that truly aligns with international lending standards, making property ownership in Costa Rica more accessible, predictable, and professionally structured than ever before.

As this market continues to evolve, we anticipate broader eligibility, more competitive rates, and new opportunities for construction and development financing. 

You can complete our Quatro Legal – Financial Solutions Intake Form, which helps our team collect the key details needed to evaluate your profile and connect you with the ideal financing program.

Our legal team specializes in assisting foreign investors through every stage of the process ensuring your financing is handled efficiently and securely.

If you want to explore financing options in Costa Rica, contact us at financialsolutions@quatro.legal.

Disclaimer: The information provided in this blog post is for general informational purposes only and is not intended to constitute legal advice. While we strive to ensure the accuracy and timeliness of the content, laws and regulations are subject to change. For the most accurate and up-to-date information, please contact our office directly. Some images may be AI generated.