[Jesse]

Ok,

I've searched for a few hours tonight and what i've found is that most mortgage questions go unanswered.

My wife is a CR Citizen, and i'm a US Citizen.

My wife and I are self employed and earn a very nice salary in USD.

We want to buy or build in Costa Rica ASAP.

What are we looking at? Who should we talk to?

I'm looking for interest rates, qualification guidelines... I'm assuming my wife being a CR Citizen, can't hurt...

We're presently in CR and can go and sit down if need be.

All help is much appreciated, thanks!

[jdocop]

Lots of luck, Jesse. We have learned, as of late September, that there simply are no mortgage loans available in Costa Rica for anyone. The only loans available are for agriculture. A Citizen or permanent resident may be able to get a personal loan, but the Catch-22's that are attached, make it totally unacceptable (you have to have as much money in the bank already as you are asking to borrow; short term loans only; interest rate that can only be called usurious - 16.25%). We already own a building lot in CR, and thought we could use that for collateral, and learned that is also not possible. As for taking out a loan in the states, you already know the economic mess we have here. If you already own a home in the states that has a real equity, you might be able to take out either a home equity line of credit, or an outright home equity loan.

[TicoVille]

I have asked a few people and will hopefully be able to get you guys some info by tonight.

Mike

[Jesse]

Not to be argumentative, but I have a very hard time believe that there are no mortgage options for Costa Rican Citizens making good money... Maybe more interest, maybe less of a term...however, no options? Come on...

[jdocop]

Hey, you asked. Maybe you should ask some banks directly your self. You have to remember that the idea of using credit until you are so far deep in debt that you cannot get out is totally American. As has been stated elsewhere on this forum, the attitude in Latin America has always been that if you can afford it you pay cash, otherwise, you learn to live without.

[player1810]

Jesse, on Oct 14 2008, 02:01 PM, said:

Not to be argumentative, but I have a very hard time believe that there are no mortgage options for Costa Rican Citizens making good money... Maybe more interest, maybe less of a term...however, no options? Come on...

There are some options out there I get offers from Bac and Scotia they also have a government program for buyer (invu). But the bank offers as stated are not called mortgage loans

[Jesse]

jdocop, on Oct 14 2008, 01:08 PM, said:

Hey, you asked. Maybe you should ask some banks directly your self. You have to remember that the idea of using credit until you are so far deep in debt that you cannot get out is totally American. As has been stated elsewhere on this forum, the attitude in Latin America has always been that if you can afford it you pay cash, otherwise, you learn to live without.

A roof over your head is pretty much a necessity in my book... Sure you can rent... but many ticos buy, and they buy on a VERY small income. Some pay cash for typical tico houses which can be very cheap...others use different options.

a quick google turns up http://www.costaricamortgage.net/ which states:

Finished Homes and Construction:
Up to 75% Financing

3 YR ARM: 9.00% 25 YR AMORTIZATION

5 YR ARM: 8.03% 20 YR AMORTIZATION

15 YR ARM: 8.78% 20 YR AMORTIZATION

So we know it's possible and that the mortgages exist... What i want is more than just one option and also to talk to some people who have done it. Keep it coming people, i've already seen a few new options just from this thread.

[TicoVille]

I have been shopping around and found a mortgage company which I have heard nothing but good about, and they have sent me a form for anyone to fill out who wants a mortgage. You guys can go ahead and download it at http://www.firetown.com/Loan and email it to mike@firetown.com

Hope to be able to connect the dots here and will let you guys know more once I have more information on what qualifies and what disqualifies an applicant.

Mike

This post has been edited by TicoVille: 18 October 2008 - 02:16 PM

[nancy nj]

the banks absolutely have financing available but will require a down payment of mabe 15-20%

u r right the interest rate is a bit higher and the terms are a bit shorter.

[dreaming]

Something else to think about is if you have a loan originating in C.R. can you write off the interest amount from your U.S. income taxes, such as with a primary residence or secondary home loan in the states! I don't know.

[jdocop]

I'm sorry, but I have to beg to differ with nancy nj. The banks in CR do NOT have money to loan, and any loan in CR with a bank is going to require that you already have most of the money available to you from other sources, they will carry a huge interest rate, and - in short - do not have terms that are at all attractive. As for being able to deduct the interest on your home mortgage, I doubt very seriously that - if you had a mortgage in CR - the IRS would allow you to take that interest deduction. I could be wrong on all counts, and would love to be shown to be wrong, because we would dearly love to be able to make a very small loan for construction, but have not been able to find any financing, either in CR, or in the states. Finally, I have already talked to the folks at the company Ticoville is talking about, and they not only do not offer loans, they are only brokers for loans, and they told me that there is no mortgage money presently in CR.

[costaricafinca]

I'll second what jdocop says. Many folk here that were building here, have had to stop as the banks won't pay out any more funds. Maybe you can look for a desperate seller who will carry a mortgage.

[nancy nj]

financing IS available

there is generally about a 25%down payment required and the terms are less than the 30 years

anyone familiar w/HSBC's mortgage program?

they have some interesting info on their website.

[jdocop]

Yes, I have already talked to them (HSBC), and despite what their website says, they are NOT loaning money. Their terms include the following (as I have already posted): you must already have on deposit with them an amount equal to what you want to borrow. You must have a huge down payment. Their interest rate is at least 16.25%. The term of any loan is not only less than thirty years, but more like ONE year. That is not what I can call financing. Hell, if I had the money, or if I thought I could accumulate it on my own in only one year's time, I wouldn't be asking for the loan!

[nancy nj]

Loan Process
Documentation Needed and Other Pertinent Information
HSBC is committed with its customer service, we want you to have a pleasant experience working with us, and therefore we want to keep you well informed so there are no surprises thought the lending process. We hope to make your experience similar to that in the USA or wherever you hail from and provide an incredible level of customer service. Thanks for taking the time to contacting us!!
Below is all the information that is necessary to send a loan to underwriting: 
Numbers 1-8 are needed to start the loan process
Numbers 9-12 are required in some cases that we coordinate
Numbers 12-18 are required documents and procedures needed after the loan process has been started that we also coordinate. 
We will coordinate the entire process and all parties involved
Please be advised that computer screen printouts normally do not suffice as statements and that our preferred method of delivery for all of these documents is scanned in .pdf format, emailed to us.
All related files should be scanned together as a whole while unrelated files should be done separately, for example, both W-2s together as one scanned document while identification papers should be scanned separately of bank statements.
If you wish to protect your private information, please take steps to remove important numbers before sending us those documents. We will not white out private information; this is the responsibility of the customer.
Providing the documentation in this manner serves to expedite the entire process.
Requirements:
Purchase agreement (or earnest money contract as referred to here).  A copy of the earnest money check can’t hurt either – down payment. 
Copy of passports and drivers licenses
Loan app. complete and signed – borrower’s authorization as well, which will we give the mutual funds, stocks, etc..) to prove source of down payment/reserves.
2 months worth of pay stub copies (wage earner only)
2 years tax returns – all pages
If self employed or commissions earned by borrower exceed 25% of the gross income, we will also need:
      a. Corporate/Partnership tax returns with all schedules attached for prior 2 years
      b.  Profit and Loss Statement for year to date (signed and dated)
      c.  Balance sheet for year to date (signed and dated)
Know your customer form