Loans to buy second-hand homes in Costa Rica -

Buying a home is one of the biggest dreams for a lot of people, although sometimes it is a goal that seems impossible. In Costa Rica, mortgage loans are a very common practice since it facilitates the purchase of property in more favorable conditions.

Is it possible to apply for a loan to buy a second-hand home? The answer is yes. In this post, we will tell you what you need to know to request a loan to buy a second-hand home.

Benefits of this type of loans in Costa Rica:

Benefits of buying a second-hand home:

Home at a lower cost in comparison to the initial construction costs.
Remodel or improve details according to the new owner’s preferences.
The time and complications of the construction process can be reduced.
There are financing options to cover up to 90% of the total cost of the purchase of the second-hand home, and the process takes from 10 days to 90 days to be approved.

How does a loan to buy a second-hand home in Costa Rica?

The mortgage loan generally covers a portion of the total value of the property and takes periodic payments over an agreed period, which can be extended for several years.

In Costa Rica, loans are available for nationals and foreigners, although for foreigners the process is more complex and requires more specialized advice. The terms and conditions of the loan may vary according to the financial institution granting the loan and may also depend on the borrower’s creditworthiness. Loans to buy a second-hand home are possible and they make it easier for you to get a home of your own.

Conditions to apply for a second-hand home loan

Purchase agreement: this is the first requirement that the bank requests from the buyer in order to know the specific conditions of the purchase.
Appraisal: When applying for a loan, banks perform an evaluation of the property to determine the condition, maintenance, and antiquity of the property. If the property is very old it is affected because the appraiser can quote it very low.
Financing: Banks usually do not lend 100% of the value of the property. For this reason, the buyer must have money that serves as an initial payment for the buyer.
Credit history: When applying for a second-hand home loan, the bank or financial institution will investigate your credit history, to learn about your expenses, debts, credit cards (if you are up to date with your credit limit).
Income: The amount approved by the financial institution will depend on your income.
Information about the property:
- Cadastral map
- Utility information (up to date with municipal taxes, utilities, and condominium fees if applicable).
- Public deed
- Insurance
And other factors that will guarantee the bank that it is a profitable investment.

Recommendations for loan application

Apply for a loan in the currency in which you receive your income. This prevents the impact of exchange rate variations.
Make a pre-qualification: ask different entities in order to find the one that best suits your current reality. Search for information on interest rates, terms and conditions.
It is important that you know if an early cancellation can be penalized according to the bank’s conditions or if on the contrary, it is a good way to bring forward the payment of your debt.
If you are a couple, you can apply for a loan as co-debtors.
Contact your personal real estate advisor with any questions you may have during the process.

Loans to buy a second-hand home can be an excellent option for those looking to purchase a property, but it is important to carefully research and make sure the home meets your expectations before committing to the purchase.

Loans for the purchase of second-hand homes can be an excellent way to obtain a property in Costa Rica. Getting professional advice is always the best option for a successful home purchase.

Property portfolio in Costa Rica