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Has anyone had good experiences with getting a home construction loan?
I am trying to do a commercial project and need financing and the people I sell homes to need financing. I have been filling out forms at BANEX for a few months now. Can anyone reccommend a different Bank for US Citizens.
Thanks
StanI have heard that it is very hard for North American’s to get financing because of the back ground checks. Maybe you should try to get a loan in the U.S.?
It’s hard for anyone to get financing in CR because there’s no credit reference bureau, and therefore no credit reports. You’d think it would be easier for foreigners to get financing if they come from countries which offer credit reports, but evidently it’s not.
It’s also hard to find a North American bank that’ll loan you money based on foreign collateral.
I don’t know if rentistas or pensionados are eligible, but I was able to finance my home construction through el INVU (Instituto Nacional de Vivienda y Urbanismo). Their central office is in Barrio Amón. This is a government program, and no private lender comes close to the interest rate offered.
You pay a monthly premium with no benefit for several years. You can select the amount of the premium, and the number of years, but these factors impact the amount of the loan you eventually get. When the term is up, they give you the loan, and then you continue to make payments on it until it’s paid in full.
If you don’t want to wait too long, you can buy a “maduro”. This is a package someone else was paying on, but then decided to sell before it matured. There will likely be an intermediary involved, and therefore a commission. However, sometimes people do advertise in La Nación to sell their’s, and if it’s compatible with what you’re looking for, you can cut out the middle man.
Given the cost of money from the private sector in Costa Rica, even with a commission, this is the best way to go if you can, bar none.
Interesting Gringotico,
How about my situation, since my wife is a tica. I understand that it is much easyer for us. What are the rates like with this loan? I know that my brother in-laws had high rates but I wouldn’t care since it would not be a large amount and we could pay it off early.
Scott,
9% fixed, up to 49 million colones, for purchase or constrution. You’re definitely eligible, so don’t think twice. It’s the best deal in town. I doubt if rentistas or pensionados are eligible since it’s a government institution de “interés social”, but I don’t know that for a fact.
I bought my land for cash, then bought a 4 year “maduro” through an intermediary that had already been paid on for 2 years. Two years later I got the loan to build.
Barrio Amón, if I remember correctly:
Esquina Noroeste Holiday Inn Aurola, 200 metros Norte, 50 metros Oeste.
Call to make sure they’re still there: 222-22-13. You probably have to go through an agent. That phone # is 255-08-83.
Stewart Title Co. in San Jose is facilitating “American-style” mortgages through Costa Rican banks. We have a construction loan made by Banex which will become permanent (20-year) financing upon completion of the project.
You provide all the documents any U.S. lender would require to Stewart Title. They forward them to a bank in Texas which does the credit investigation in the U.S., just as any other U.S. bank would do. The bank in Texas then makes a recommendation to loan (or not) back to Stewart Title Co. who then “markets” it to Costa Rican banks with whom they are collaborating. It’s pretty straightforward.
The costs are $250 to Stewart for copying, the investigation, etc. Then, at closing, you pay Stewart 1% for title insurance. That’s the payoff to Stewart.
Call Federico Vega at Stewart Title at 815-8351 and tell him Dave Murray sent you.
Hello,
Even if this post is pretty old, I still would like to provide my feedback…
I have been doing an extensive research from the web, referrals and magazines in order to be able to finance my condo in Tamarindo. Here are the 2 best brokers I found, responsive, fast, reasonably priced and honest:
– http://www.rivierafinancial.com Fernando@rivierafinancial.com 506 888 1307
– http://WWW.MDOMORTGAGE.COM info@mdomortgage.com 800 518 2066I also tried to work directly with most banks and Stewart Title with no success: phone calls or emails not returned, lost documents multiple times or the Loan To Value was too high.
This post is based on my experience for the last month of research…
See you,
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