Many people think that buying Costa Rica real estate is not an option for them, because they think they need all cash to buy the properties.  In fact, that is extremely far from being the case, as there are a wide variety of options which I'm going to introduce here.

1.      Cash.  It has to be mentioned.  Of course you can buy a home with all cash, but why would you when you don't have to?

2.      Loan from Costa Rican bank.  It is possible to get a home loan from a Costa Rican bank, but the terms will be horrible and the rates will be high.  On top of that, it will take an excruciating amount of time to get funded.  Move on to the other choices...

3.      Developer financing.  Many developers are offering their own financing programs which are convenient, but don't always have the best terms and interest rates.  They typically require 25%-30% down, and often the loan has a balloon in 5-7 years.  This isn't such a bad option, and the buyer can bring in cash for the down payment, or even use their home's equity (see related point, #4) for the down payment.

4.      US home equity loan.  With the majority of US markets' appreciation below 10% (far below), why not move a homeowner's precious, but stagnant, equity from their home, to a Costa Rican property that is appreciating at 10-30%+?  And since many Costa Rican developments offer property management, renters can offset the loan costs.  The buyer can pull enough equity out of their home to make up 100% of the purchase of their Costa Rican property, or just enough for a down payment to use developer financing (see point #3).

5.      US lenders.  More and more US lenders are offering loan products for the purchase of Costa Rican real estate.  As even more US lenders recognize the opportunities that these products offer, these loan products will be readily available and a very good choice for those who qualify for them.

6.      Reverse mortgage.  Costa Rica is a retirement spot favored by retirees for the lovely weather, inexpensive living, high quality medical care, and the friendly & safe atmosphere.  It is also a great place for retirees to effortlessly build their wealth by moving their stagnant, US home's equity to a highly-appreciating Costa Rican home using a reverse mortgage.  The bottom line - they can invest their US home's equity in a Costa Rican property AND enjoy that investment during their retirement years.  So they can have their cake, and eat it too!

Not sure which option is right for you?  Contact me and I'll put you in touch with some of my mortgage and wealth planning experts to help you choose the financing option that is the best for your overall financial health!

Tiffany Wilson is a real estate investor and an International Real Estate Consultant for Compass Properties, with offices in US and Costa Rica locations.  She is passionate about Costa Rica and loves telling people all about it!  She can be reached at twilson@compasscostarica.net.  Check out Compass Properties website at www.dreamingofcostarica.com for more information on Costa Rica real estate opportunities.