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Hello,I remember a thread or so about mortgage lenders in Costa Rica. I thought there was mention of some being from the USA. I was asked who they are but i cannot remember. Can someone refresh my memory?
ThanksI’ve never heard of American companies offering mortgages in Costa Rica, but, of course, I could easily be wrong.
What I have heard of is Americans using the equity in their U.S. properties to purchase real estate in Costa Rica. There are also Costa Rican mortgage brokers who can assist with obtaining a mortgage here.
Stewart Title Company has a mortgage services office. When we used them for our construction financing, they took all the documentation we’d normally provide to a U.S. mortgage lender and sent it to the Southern Bank of Texas who evaluated it as if they were considering extending us a mortgage. They then made a recommendation (to lend, thankfully) which Stewart used to obtain our financing from a Costa Rican bank. Other mortgage brokers could do the same.
I’ve researched this for my own benefit, and can report that I’ve never found a US – based lender who will directly lend on a CR property. Naturally, the problem is risk management for the lender – how to collect if the loan goes bad.
If you aren’t willing (or able) to go through the C.R. banking system to obtain a mortgage loan (as David describes above) then your best bet is financing obtained through a private lender in the U.S.
If you can find a private lender to lend on the property, you can have a Mortgage drawn up in C.R. that can be recorded. This means, the lender will have recourse should you default – but only within the C.R. system. I suspect the Interest Rate the lender would charge would reflect the risk/cost involved.
Recording / Notary costs should be about 2% of the loan amount, plus you would need to pay a C.R. attorney to draw up a mortgage that is compliant with C.R. laws, and thus enforceable in C.R.
[quote=”DavidCMurray”]I’ve never heard of American companies offering mortgages in Costa Rica, but, of course, I could easily be wrong.
What I have heard of is Americans using the equity in their U.S. properties to purchase real estate in Costa Rica. There are also Costa Rican mortgage brokers who can assist with obtaining a mortgage here.
Stewart Title Company has a mortgage services office. When we used them for our construction financing, they took all the documentation we’d normally provide to a U.S. mortgage lender and sent it to the Southern Bank of Texas who evaluated it as if they were considering extending us a mortgage. They then made a recommendation (to lend, thankfully) which Stewart used to obtain our financing from a Costa Rican bank. Other mortgage brokers could do the same.
[/quote]Thanks David. I think you are right. Stewart Title is who i was thinking of. I replied back to you awhile back and i think i didn’t hit the save button.
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