If you have been dreaming of owning a slice of paradise along the central Pacific coast, you already know the lifestyle is unmatched. However, for many buyers looking at properties from Manuel Antonio to Punta Leona, one traditional hurdle has always stood in the way: financing. Historically, securing a mortgage in Costa Rica as a non-resident meant navigating complex local banking systems, dealing with unfavorable terms, or buying entirely in cash.
That is officially a thing of the past. At Pacific Dreams Realty, we are thrilled to announce our partnership with Second Street Mortgages to offer our clients seamless, U.S.-style property financing, right here in Costa Rica.
The Game-Changer: Meet Second Street Mortgages
Second Street is the premier international mortgage lender dedicated to offering familiar U.S.-style financing to Americans buying or refinancing homes in Costa Rica. Backed by a multi-billion-dollar U.S. mortgage lender, they have streamlined the process so that securing a loan here feels exactly like it does back home.
Key Loan Benefits & Terms
Whether you are looking for a primary residence, a vacation getaway, or an investment property, this partnership opens up incredible opportunities. Here is what you can expect from their loan programs:
- Familiar Terms: Loans are structured as traditional 30-year, fixed-rate mortgages.
- Borrowing Power: Buyers can finance with a maximum Loan-To-Value (LTV) of 75%.
- Minimum Loan Amount: Mortgages start at a minimum of $150,000.
- No Prepayment Penalties: You have the freedom to pay off your mortgage or refinance at any time without facing hidden fees or prepayment penalties.
- Cash-Out & Refinancing: If you already own a home here, cash-out refinance options are available to unlock your equity.
- New Construction (Pre-sale) Solutions: While they finance completed homes, if you are buying a pre-sale property, they can finance your final payment at closing and potentially refinance your previous deposits.
Who Can Apply and How It Works
These loans are currently exclusively available to U.S. citizens and U.S. permanent residents. The approval process is designed to be highly efficient, eliminating the notorious red tape of international real estate transactions.
- Lightning-Fast Pre-Approval: You can get pre-qualified and pre-approved in as little as 24 hours.
- Quick Closings: Once approved, the timeline from application to the final closing table generally takes just 4 to 6 weeks or less.
- Standard Closing Costs: If you are wondering how the fees compare, total closing costs with Second Street are roughly the same as an all-cash purchase—typically around 4% to 5% of the purchase price. This includes all taxes, fees, and third-party expenses like lawyers and appraisals.
- Competitive Interest Rates: As of this writing, interest rates start at 8.25% (subject to change).
Your Costa Rican Dream, Funded
Bringing standard U.S. lending into the Costa Rican real estate market completely shifts what is possible for buyers. You no longer have to tie up all your liquidity in a cash purchase to secure your dream home or investment property.
We are here to guide you through every step of finding the perfect property and securing the financing to make it yours. If you are ready to explore your options, reach out to us today to start your property search!
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