ANNOUNCEMENT - New Costa Rican Real Estate Financing Program for Foreigners.
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 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.----------------------------------------------------------------------------------------------------------------- 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
GUIDE- Financing Properties in Costa Rica
NEW APRIL 2023 - ANNONCING A NEW REAL ESTATE FINANCING PROGRAM FOR NON-RESIDENTS IN COSTA RICA. Check out the terms and conditions here.Costa Rica is a popular destination for tourists, retirees, and expats looking to buy property. With its stunning natural beauty, warm weather, and relatively affordable cost of living, it's no wonder why so many people are interested in investing in real estate in this Central American country. However, financing a property in Costa Rica can be a bit different than in other countries. In this blog post, we will discuss some of the things you need to know about financing a property in Costa Rica, including the different types of loans available, the requirements for obtaining a loan, and some tips for making the process as smooth as possible. Certainly, as an expat, financing a property in Costa Rica may present some unique challenges. Here are some things to consider: Residency Requirements To obtain a mortgage loan in Costa Rica, you will need to have legal residency status in the country. This means that you will need to have a valid residency visa or be a citizen of Costa Rica. Without legal residency, it can be very difficult, if not impossible, to obtain a mortgage loan from a local bank. Financing Options As an expat, you may find that your options for financing a property in Costa Rica are more limited than they would be for a local resident. Some banks may be hesitant to offer mortgages to non-residents, or they may require a higher down payment or higher interest rates. One option for expats is to work with an international lender that specializes in providing financing for non-residents purchasing property in Costa Rica. These lenders may have different requirements and terms than local banks, so it's important to do your research and compare your options. Language and Cultural Differences Navigating the process of financing a property in a foreign country can be challenging, especially if you don't speak the language or aren't familiar with the local customs and laws. Working with professionals who can guide you through the process and help you understand the requirements and risks involved is important. Consider working with a bilingual real estate agent, attorney, or financial advisor with experience working with expats. They can help you understand the legal and financial implications of purchasing property in Costa Rica and guide you through obtaining a mortgage loan. Currency Exchange Risks When financing a property in a foreign country, you must consider the risks associated with currency exchange rates. If you obtain a mortgage loan in Costa Rica, you will likely be required to pay in local currency (Colones). This means that if the US dollar's value decreases relative to the Colones, your mortgage payments may become more expensive in US dollars. Working with a financial advisor who can help you understand the risks associated with currency exchange rates and develop a strategy for managing these risks is important. Property Taxes and Fees As a property owner in Costa Rica, you will be responsible for paying property taxes and other fees, such as closing costs, title transfer fees, and legal fees. These costs can add up quickly, so it's important to factor them into your budget when considering purchasing a property in Costa Rica. In addition, property tax rates in Costa Rica can be quite high, especially for non-residents. Be sure to research the tax rates in the area where you are considering purchasing a property and factor them into your budget. In Conclusion Financing a property in Costa Rica as an expat can be challenging, but it's not impossible. By understanding the requirements and risks involved, working with professionals with experience working with expats, and developing a solid financial plan, you can successfully navigate the process and make your dream of owning a property in Costa Rica a reality. Fortunately, Costa Rica Life Group - Engel&Völkers in Tamarindo guides you through every step, from initial inquiries to settling into your new home. Please contact us to get a free consultation about financing options, Here Looking for Build or purchase a Luxury Property in Guanacaste , Tamarindo, Costa Rica? We are here to help! Whether you are already set on a particular lot or are still exploring the real estate options in Costa Rica, specifically in Guanacaste, Tamarindo, we are eager to assist you in navigating this world of opportunities. At Costa Rica Life Group - Engel & Völkers , we focus on you. Our goal is not to sell you a property but to genuinely help you find the ideal one that meets your needs and preferences. We take pride in building relationships with our clients and promise to offer the quickest communication and best services in the industry. Why not put our expertise to the test? Give us a chance to impress you with the numerous possibilities available. We are confident that we have some of the best Costa Rica luxury real estate, with an array of condos, homes, land, and businesses for sale. Book a free consultation Here
GUIDE - How to choose the right realtor in Costa Rica
Choosing the right realtor in Costa Rica is an important decision that can significantly impact your experience buying or selling a property. This article will explore some key factors to consider when choosing a realtor in Costa Rica. Experience One of the most important factors to consider when choosing a realtor in Costa Rica is their experience. Look for a realtor with a proven track record of success in the local market and experience working with clients with similar needs to yours. A seasoned advisor will be able to provide valuable insights into the local market and tips for navigating the buying or selling process. Reputation In addition to experience, you should consider a realtor's reputation when deciding. Look for an advisor who has a good community reputation and is known for their professionalism and integrity. Communication Effective communication is key to a successful real estate transaction. Look for a realtor who is responsive to your needs and willing to communicate with you on your preferred schedule and through your preferred channels. A good realtor should be able to answer your questions in a timely and clear manner and should be able to provide regular updates on the status of your transaction. Knowledge of the Local Market A good realtor should have a deep understanding of the local real estate market like Tamarindo. Look for a realtor with experience working in the specific area where you are interested in buying or selling a property. They should be able to provide insights into market trends, local regulations, and other factors that could impact your transaction. Bilingual Skills If you are not fluent in Spanish, it is important to choose a bilingual realtor. This will ensure that you can communicate effectively with your realtor and understand all aspects of the transaction. A bilingual realtor will also be able to navigate any language barriers that may arise during the transaction. Professionalism Look for a realtor who professionally conducts themselves. They should be punctual, organized, and attentive to details. A good realtor should also be honest and transparent and provide you with all the information you need to make informed decisions. Availability In Costa Rica, Real estate transactions can move quickly, so choosing a realtor who is available when you need them is important. Look for a realtor willing to work around your schedule and available to meet with you when it is convenient for you. This will help ensure that your transaction moves forward smoothly and that any issues that arise are addressed in a timely manner. Technology Technology plays a key role in real estate transactions in today's digital age. Look for a realtor who is up-to-date on the latest technology tools and platforms and can use them effectively to streamline the buying or selling process. For example, a realtor who uses virtual tours or online listing platforms can help you save time and make the process more efficient. In conclusion, choosing the right realtor in Costa Rica is an important decision that requires careful consideration. Considering the abovementioned factors, you can find an experienced, reputable, communicative, knowledgeable, bilingual, professional, available, and technologically savvy realtor. With the right realtor by your side, you can confidently and easily navigate the complex process of buying or selling a property in Costa Rica.
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