BANK INFORMATION FOR REAL ESTATE IN COSTA RICA

For many reasons, more and more foreigners want to own a piece of Costa Rica to live or to invest. Others may want a vacation property or a place for eventual retirement. Whatever the reasons are, Costa Rica offers many possibilities for real estate business. Some Public and private banks have loan programs with different benefits for those who want to buy lots or to build a home in our country. Here you have some information about bank programs to financing real estate in Costa Rica. Do not remember to look for legal advice after you decide to invest in a piece of this beautiful country.

***********************************

BANCO DE COSTA RICA               www.bancobcr.com

Residencial Loan Mortgage for Non-Residents / Crédito Residencial Hipotecario No Residentes

Investment plan / Plan de inversión.

• Loan for the purchase of lot, lot purchase and construction, or purchase of finished residence. / Crédito para compra de lote, compra de lote y construcción, o compra de residencia construida.
•  
• Home improvements (remodeling or expansion) of the home where the client or any member of his immediate family live. / Mejoras por remodelación o ampliación de la vivienda donde reside el cliente o algún miembro de su núcleo familiar.
•  
• Mortgage cancellation of the client’s residence. / Cancelación de hipotecas de la residencia del cliente.
•  
• A loan for the purchase of secondary or investment residences can be considered. / Se puede considerar el financiamiento de otras viviendas, donde no necesariamente reside el deudor.

Loan Details / Características del crédito

Currency/Moneda/: Dollars / Dólares
Period/Plazo máx. a financiar: Up to 20 years / Hasta 20 años
Minimum amount to finance/Monto mín. a financiar: $50,000.00
Maximum amount to finance/Monto máx. a financiar: $1,000,000.00
Collateral: Mortgage
Garantía: Trust collateral on residence, batch, which sets out the following figures for this effect:
Trust debtor: The client requesting credit.
Creditor Trust: Banco de Costa Rica.
Trust: Banco Crédito Agrícola de Cartago. This may include additional housing units or lots to finance 100% of the property you want to finance, provided they are highly liquid.
Collateral Coverage / Cobertura de la Garantía: 70% max. Until $1.000.000.00. May include additional assets to 100% finance./ Un máximo del 70% Hasta $1.000.000.00. Puede incluir bienes adicionales para financiar el 100%.
Processing fee/Comisión de formalización: 1.5%
Porcentaje máx. financiamiento: 70% máximo hasta $1.000.000,00
Endeudamiento máx.: Hasta un 45%
Where appropiate
Pólizas: Fire insurance, and life insurance with BCR / Póliza de incendio (cuando corresponda) y colectiva de vida con BCR
Interest Rate/Tasa de interés: Prime Rate + 2.5%, Tasa piso 8.5%
Minimun rate/Tasa mínima: The one at the moment of processing/La del momento de formalización
Other conditions / Otras condiciones:

Minimum income of $ 3500 or its equivalent in colones or another currency. / Ingreso mínimo de $3500 o su equivalente en colones u otra moneda".

LOAN REQUEST WILL BE CONSIDERED WHEN ALL DOCUMENTS BE RECEIVED (*) If there is any difference between the valuation and the purchase price, the lesser amount will be awarded.  (**) Other conditions may apply to foreigners from countries other than the United States of America. / LA PETICIÓN DEL PRÉSTAMO SERÁ CONSIDERADA CUANDO SEAN RECIBIDAS LAS DOCUMENTACIONES COMPLETAS (*)  Si existe alguna diferencia entre el avalúo y el precio de compra, se otorgará el monto que sea menor. (**) Otras condiciones podrían aplicar a extranjeros de otros países que no sean ciudadanos de los Estados Unidos de América.

Requirements  

1. Photocopy of the passport, driver's license and social security number. / Copia del pasaporte, licencia de conducir y número del seguro social.
2. Form W-2 for the last two years (Wage-earner borrowers). / Formulario W-2 de los dos últimos años (Asalariados). 
3. Tax Declaration for the last two years (Self employed borrowers). / Declaración de impuestos de los últimos dos años (Ingresos propios).    
4. Bank-account balance for the last 3 months. / Estados de cuentas bancarias de los últimos 3 meses. Application forms (All are necessary) / Formularios bancarios (Todos son necesarios ).
5. Authorization to release credit information, for the SUGEF. / Autorización para solicitar referencias crediticias a la SUGEF.
6. Customer identification compliance form. / Formulario Conozca a su Cliente.
7. Universal USA application form / Solicitud con formulario universal USA. Additional documents if this is a construction loan. / Documentos adicionales en caso de construcción de casa de habitación. Documents to be provided by the seller. / Documentación que debe aportar el vendedor.
8. Photocopy of the seller’s ID Card. / Copia de la cédula de identidad del vendedor.
9. Buy-sell contract, valid for 90 days. / Contrato de compra y venta con 90 días de vigencia.
10. Photocopies of the map of the property for sale. / Copia del plano de catastro de la propiedad en venta.
11. Study of the property for sale (National Register). / Estudio registral de la propiedad en venta.
12. Valuation report. / Avalúo. 
13. Construction permit issued by the municipality. / Permiso de construcción extendido por la municipalidad que le corresponde.
14. Plans for the construction. / Planos de la construcción que se llevara a cabo.
15. Budget for the construction. / Presupuesto de la construcción.

***********************************

BANCO NACIONAL DE COSTA RICA     www.bncr.fi.cr

“Second Home Financing Program” Residents and Non Residents Mortgages Loans. For buying houses, condos, condominiums or land in Costa Rica.

Conditions
Maximum loan term / Plazo Máximo: House or Condo: up to 20 years / Vivienda: 20 años. Land / Lote: up to 10 years /10 años.
Maximum Rate to Income Ratio (DTI): 30% (Cuota / Ingresos)
Creditworthiness: Minimum 680 points (Good or very good references: TransUnion or Equifax Experian)
Maximum Loan over Earnest Money Contract / Porcentaje de Financiamiento:
(*) Over $800.000: 50%
(*) $400.000 to $800.000: 60%
(*) Up to $400.000: 70%

Loan to value ratio over appraisal / Porcentaje Responsabilidad de la Garantía: Resident: 70% ** Non Resident: 65%
Annual Rate / Tasa:
8.00 %= Libor 6M + Spread = 1 to 12 Months
8.15 %= Libor 6M + Spread = 13 to 36 Months
8.45 %= Libor 6M + Spread = 37 to 60 Months
8.55 %= Libor 6M + Spread = 61 to 96 Months
9.05 %= Libor 6M + Spread = 97 to 240 Months

Review and Rate Adjustment Monthly / Ajuste Annual: These rates include cost of fire and life insurance (Restrictions apply)

                        8.03%                           1 to 5 years (fix)
Libor 6M + 5.21            6 to 8 years
Libor 6M + 5.70            Remaining

• 1 to 15 years

Libor 6M + 3.53%         Remaining

Requirements

Apply only to US and Puerto Rico Citizens / residents (**).
The check list is provided to help gathering information to be included with loan application. Basic requirements needed are listed below. The Fideicommissary bank may ask for additional documentation necessary to determine risk and approval of credit proposal.

Documents:

• Valid passport´s photocopies (borrower and co-borrower) / Fotocopias del pasaporte del deudor y del co-deudor.
• W-2 forms for previous 2 years / Formulario W-2 para 2 últimos años
• Personal tax returns for past 2 years (all pages signed and dated) / declaración de impuestos de últimos 2 años (fechada y firmada)
• Bank statements and – or brokerage account investments for prior 3 months / Estados bancarios de 3 meses previos
• Credit report from borrower and co-borrower (TransUnion, Equifax Experian) Ref: 680 points www.myfico.com / Reporte de crédito.

Bank forms (For all applicants)

• Form of Authorization Consumer Consent / Autorización Consentimiento del Consumidor.
• Know Your Customer Form / Formulario “Conozca a su Cliente”
• Uniform Residential Loan Application (completed and signed bay all parties) / Solicitud con formulario universal USA.
• ACH Form (Automated Clearing House) / Formulario Cargo Automático Cuenta en USA.
• Account Opening Form and PAR Form / Contrato de Apertura de Cuenta y Formulario PAR
• SUGEF Credit Report Form / Formulario SUGEF Costa Rica.

Documents from developer

• Earnest Money Contract (sales purchase agreement executed by buyer and seller / Contrato Compra – Venta.
• Cadastral Plot Photocopy (Survey Plan) – Plano Catastrado
• Appraisal / Avalúo
• Constructive blueprints / Planos de Construcción

LOAN REQUESTED WILL BE CONSIDERED WHEN FULL  DOCUMENTATION HAS BEEN RECEIVED.
(*) Lower amount between appraisal and purchase price
(**) other conditions may apply to other citizens rather than US citizens.

***********************************

BANCO HSBC           www.hsbc.fi.cr

Historically, buying real state in Costa Rica has been a cash-only transaction for foreigners.  However, with the HSBC Second Home Loan Program, this bank managed to change the history.
If you are buying property in Costa Rica and have a good credit history, HSBC offers the solution that might work for you. HSBC will glad to assist you in anyway they can.
HSBC have had this program for over two years, now the bank can proudly says that has a large group of very satisfied non resident customers working with them.
The HSBC loan program allows you to finance a house, a condo or a construction for up to 25 years, and can give you up to 75% of your property value with no prepayment penalties.  HSBC can also refinance your current mortgages or give you a Home Equity Loan, again according to your credit history.
HSBC offers to find a solution for your banking needs, according to your own way of doing business. Contact through its website or call centre for more information.

***********************************

BANCO CUSCATLAN  www.bancocuscatlan.com

NON RESIDENT MORTGAGE PROGRAM
For those who are interested in buying a house or condo. This program only applies to current residents of USA.

***********************************
SCOTIABANK MORTGAGE LOANS
The Scotiabank Mortgage Program is designed for individuals who want to buy a house, build their personal or vacation home, make improvements on their house, refinance some personal debts or to buy a second home for rental purposes, as an investment. Scotiabank also offers financing to purchase land for residential purposes.
The package offers many benefits:

1. You will have access to mortgages in US Dollars up to 90% financing for personal residences, only for residents. For Non Resident the loan to value is up to 75% in the case of properties occupied by the owner, for lots is 50% and in the case of rental or recreational properties depends of the analysis.
2. Scotiabank offers up to 30 years to pay and up to 25 years for non residents.
3. Assignment of all risks insurance policy over the property to be purchased and for amounts acceptable to the Bank.  The policy thereafter to be endorsed to the Bank. It has to be renewed every year.
4. All legal documents must be prepared by Scotiabank lawyers and the borrower has to assume costs.
5. The appraisal is to be prepared by Scotiabank engineer and the borrower has to assume costs.
6. Scotiabank has penalty of 90 days interest for payments to the principal during the fix rate term if the payment is more than 15% of the original amount.
7. Rate for construction is 1% higher during the construction period but borrower only has to pay interest of the cash advance for this purpose.
8. Scotiabank makes the monthly payments automatically from your personal / commercial account with us.

REQUIREMENTS

• Application form signed by the customer, SUGEF form and insurance application.
• Two identifications with photo (passport and driver license, social security number)  
• Income tax return for the last three years.
• Income verification as following:


• Self-employed borrower and Borrower with foreign income, certified income by an authorized CPA registered in Costa Rica. It must indicate average gross and net income during the last fiscal period and mention and documents of all resources used to certify income such as account statements, receipts, etc.


• Self-employed borrower and Borrower with foreign income in Canada and USA, certified income by an authorized CPA registered in Costa Rica, must indicate average gross and net income based on the tax income.


• A copy of the last six months bank statements and credit cards.
• Register study of properties and cars owned by the customer.
• Tax certification of all municipal taxes paid over the property.
• Copy of purchase option agreement.
• Register study of property.
• Two copies of certified charts of the property.
• Bank conducts credit reports in the country of residence.  All accounts shown on your credit report must be presented to Scotiabank.
• Two reference letters from your current banks covering at minimum two years.
• For construction only:
• The approved construction charts by the Colegio de Ingenieros y Arquitectos de Costa Rica and the Municipality.
• Schedule of construction activities.
• The construction budget.

Scotiabank also offers loan programs lot or home purchasing with some benefits:

• Competitive interest rates
• Loans for up to 15 years for lot or up to 30 years for home
• Possibilities to complement with loans for building a home.
• Financing available in dollars and colones.
• Arrangements with real estate developers

Scotiabank offers some other programs for real estate investors. For more information just call or visit us.