The dream of owning a slice of paradise in Costa Rica can sometimes feel out of reach, especially when dealing with the complex world of real estate financing.
In the past, home, and business loans were unavailable in Costa Rica, or ex-pats had to wait for residency status. However, we are progressing, and now there are new opportunities in the financing space.
So, thanks to the dedicated efforts of experts like Gabriel, the founder of a company specializing in Costa Rica real estate financing, it's become a much more achievable goal.
Services for Ex-pats
Gabriel's company primarily serves ex-pats looking to buy or build properties in Costa Rica.
There are many similarities between loan applications in North America and Costa Rica. While it can appear straightforward, it can also be a little tricky, but that’s why Gabriel and his team are so helpful.
They also have a home loan program in partnership with the government of Costa Rica. The upfront costs are higher, but the requirements are very slim and make it easy.
However, the amounts are lower, with a maximum of around 200,000 USD. This amount is beneficial for some clients, but only for some.
However, the amounts are lower, with a maximum of around 200,000 USD. This amount is beneficial for some clients, but only for some.
In addition, his company provides a comprehensive array of services, including assisting clients in obtaining home and business loans and even helping them leverage their retirement savings via programs like 401K and RRSP for real estate investment.
Understanding Your Project
One of the key things to remember is that it's crucial to understand your project's specifics before seeking financing.
Banks and financial institutions need concrete plans rather than vague ideas. While it's essential to plan, know that rules, interest rates, and bank policies can change over time, making it more sensible to seek financing when you're ready to move.
The Loan Application Process
Gabriel's team aids clients in preparing a loan application, which often involves filling out a set of forms digitally. While these forms can also be printed and filled out manually, it's a rare practice. Once the forms are completed, and the necessary documents are compiled, they are sent to the banking partner for visualization and processing.
Timeframe and Disbursement
The timeline for this entire process can vary, typically taking a month and a half to two and a half months. This timeframe accounts for potential delays due to special circumstances like holidays or unforeseen issues like a lien on a property.
For home loans, expect the process to take longer, usually around two to three months. Retirement savings plans can be disbursed within 15 to 30 business days, depending on the client's promptness with documents.
Once the bank approves the loan, an appraiser approved by the bank is sent out, usually taking two to three weeks. Following a successful appraisal, the disbursement is done directly into the seller's bank account or based on a payment schedule if it's a construction project.
Expanding Financial Services
One exciting development in the pipeline is Gabriel's initiative to open a bank dedicated to helping ex-pats across Latin America. This will facilitate real estate financing and aid in opening corporations and managing cash assets. This is particularly beneficial for younger demographics who might have little savings but are eager to invest in Costa Rican real estate.
A Final Thought
While obtaining real estate financing in Costa Rica might seem daunting, it is a navigable journey with the proper guidance and understanding. Through diligent research and partnering with experienced professionals like Gabriel and his team, the dream of owning a home or investing in Costa Rican property can become a reality.
If you want to connect with Gabriel and his team, email sarah@sarahlena.com. They will guide you through the process and answer any queries you might have.
Remember, owning property in Costa Rica isn't just about the investment. It's about embracing a unique way of life, a beautiful culture, and the Pura Vida spirit.