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Private Mortgage Lending in Costa Rica

It’s critical to recognize that a foreigner’s prospects of obtaining a loan or mortgage from a bank in Costa Rica are little to none. Some private banks offer loans to foreigners, albeit they can be complicated and time-consuming to get. Unfortunately, if you’re above the age of 65, you’re likely to be turned down. Local banks have problems lawfully collecting and confirming your job history, credit, financial history, and other information as a foreigner. Due to this and the lengthy application process, bank financing is seldomly recommended. This is why private mortgage lending in Costa Rica can save the day!

Anyone can benefit from private lender mortgages. They work in the same way as bank or credit union mortgages. The loan is secured by a physical piece of real estate that serves as collateral. Private lenders often charge between 10% and 15% interest. This, however, fluctuates based on the loan request’s parameters and the property’s worth. You can put the money toward a down payment on a property, a purchase, debt consolidation, home upgrades, or various other things. You repay the money you borrowed in monthly installments with interest; this is how the lender makes money from the deal.

Are private lenders trustworthy?

It may sound too good to be true with options such as flexible payment periods, quick loan approvals, and reasonable rates. Still, a private lender provides the same level of security as a bank or other traditional lender.

Are private lender’s considered loan sharks?

All loan sharks could be considered private lenders, but not all private lenders are loan sharks. Loan sharking is not tolerated and illegal as they often charge incredibly high and unfair interest rates with loose terms.

Should I use a family member as a private lender?

This may be the quickest way to lose a great relationship. All circumstances are different, but it’s generally recommended to use a professional outside of your family to keep these matters separate.

Why do private lenders charge 10%-15%?

Unless you are a Costa Rican citizen-perfect candidate with a spouse to match, lenders are comfortable with these rates equivalent to local banks. Things were looser before 2008, but many foreign developers fled following the recession, leaving a sour taste in the banks’ mouths.

Is there a penalty set for paying off early?

Lenders need to be protected the same as borrowers, which is why there are clauses put in place to ensure an inevitable return on their money lending. For instance, imagine you want to borrow $200,000 USD from a lender, so the lender goes through the process and transfers it. After all this, you pay it back in just a few months, resulting in the lender making only a few thousand dollars. This wouldn’t be worth a lender’s time.

How do I get a private mortgage?

Gap Equity loans could be your solution! They have a long list of private investors who are always ready to look at new opportunities.

So, look no further; contact Gap Equity Loans HERE to achieve your financing goals fast, efficiently, and hassle-free!


To fill out a loan request – Click HERE.

Looking for help obtaining Residency in Costa Rica? – Click HERE.

Looking to invest your money with up to 16% interest? – Click HERE.

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