ANNOUNCEMENT - New Costa Rican Real Estate Financing Program for Foreigners.

by Cynthia Deslauriers

BAC Credomatic and Costa Rica Life Group - Engel&Völkers Announces New Financing Program for Non-Residents in Costa Rica

April 2023, Tamarindo, Costa Rica - BAC Credomatic, a leading financial institution in Central America, is pleased to announce the launch of a new financing program for non-residents in Costa Rica. The program is designed to help foreign nationals with Costa Rican residence (DIMEX*) and non-residents ( No DIMEX *) easily purchase property in the country.

Under the new program, salaried and self-employed foreigners with DIMEX* can obtain financing with loan-to-value (LTV) of up to 75% (lowest value between appraisal and selling price), and No DIMEX* can receive up to 50%. In addition, the loan term can be up to 25 years, providing borrowers with flexibility and long-term stability.

The interest rate for the first 24 months is fixed at 8%, followed by SOFR3M + 5% for the remaining term. The interest rate floor is 8%, subject to periodic revision. Closing fees for the loan are approximately 2.5% of the loan amount, which includes a 1.25% disbursement fee. A detailed breakdown of the fees will be provided in the quote.

"We are excited about this new financing program for non-residents in Costa Rica," said Cynthia Deslauriers, President of Costa Rica Life Group. "We understand that purchasing property in a foreign country can be challenging. We are committed to providing our clients with the resources and expertise they need to realize their dreams. This program is designed to help non-residents in Costa Rica access financing with favorable terms and conditions."

Borrowers who pay off their loan before the 5-year minimum will be subject to a prepayment penalty of 2%.
For more information about the new financing program for non-residents in Costa Rica, please contact your Costa Rica Life Group - Engel & Vôlkers representative for a free consultation Here.

About BAC Credomatic

Bac Credomatic

BAC Credomatic is a leading financial institution in Central America, offering individuals and businesses a wide range of products and services. With a presence in 8 countries in the region, BAC Credomatic is committed to providing innovative financial solutions that help its clients achieve their goals.
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Here are the detailed conditions of the real estate financing program for salaried and self-employed foreigners with costa rican residence (DIMEX*) and Non-Residents ( No DIMEX) as of April 2023.

General Conditions :

Loan To Value (LTV):

( DIMEX *) 75% (lowest value between appraisal and selling price).
( No DIMEX *) 50% (lowest value between appraisal and selling price).

Term:

up to 25 years.

Interest Rate (subject to periodic revision) :

Month 1 24: 8. 0% (2 years fixed rate)
Month 25 + : SOFR3M + 5%. | 8.0% interest rate floor

Closing Fees:

2.5% of the loan approx.* It includes: 1.25% Disbursement fee. The quote will include a detailed breakdown.

Prepayment Penalty:

2% fee for principal curtailment payments equal or higher than US$30,000 each month. Applicable within the !irst 5 years.

Requirements for Pre-Approval or Approval :

Client related:

Personal ID / Passport.
Signed personal and business tax returns (for the last 2 years).
Complete bank statements for all financial accounts, including investments (6 months).

For self employed:

Income certificate issued by a CPA within last month (either local or foreign CPA) + Copy of most recent quarterly or yearto date pr o!it/loss statemen.

For salaried:

Recent pay stubs (covering the most recent 30 days)

Completion of the following forms:

SUGEF form
Consent for customer verification from USA/Canada

Credit Bureau (Non-residents).

Loan application.
KYC forms.

Property related:

Real Estate property information. (Property pictures, project renders, address).
Land use and service availability. (Electricity, Water) This applies to houses that are not in development.
Copy of the certified charts of the property.

After Approval :

After obtaining the pre-approval or approval, you can pay for the property's appraisal and initiate the life insurance process. Life insurance should be issued in Costa Rica.

For construction financing the following documents are required for the appraisal:

Approved construction charts by the ìMunicipalidadî.
Schedule of construction activities and its budget.

Before Closing :

Before closing, you will need to produce the following documentation.

Evidence of down payment (deposit certificate or receipts of payment from seller).
Purchase option agreement signed by the customer and the seller.
Tax certification of the property from the "Municipalidad."
Letter of no debt from Homeowners Association

The information presented constitutes no compromise from Banco Bac Credomatic. This information could be modified if necessary at sole discretion. Terms and conditions can expire at any moment.

Note: A guarantee trust will be used as the legal structure to secure the collateral in favor of the bank during the loan term. As a result, the property will be held by a trustee during that time. At the end of the term, the property should be transferred.

* DIMEX= Immigrant Identification Document for Foreigners