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Buying Property in Costa Rica with Owner Financing: How It Works

Buying Property in Costa Rica with Owner Financing: How It Works

October 16, 2026

Properties in Costa Rica

Getting a mortgage in Costa Rica as a foreigner is not easy. Local banks often ask for residency, local income history and a lot of paperwork, and many buyers from the United States and Canada cannot use their home country banks for a property abroad. That is why owner financing, also called seller financing, is one of the most useful tools in the Costa Rica real estate market.

What is owner financing?

With owner financing, the seller acts as the bank. You pay part of the price at closing, and you pay the rest to the seller over an agreed period, with an agreed interest rate. You become the owner at closing, and the seller’s loan is protected by a lien on the property until you pay it off.

Typical terms

Every deal is negotiated between buyer and seller, but these are common starting points:

  • Down payment: often between 30% and 50% of the price.
  • Term: usually shorter than a bank loan, often between one and five years, sometimes with a larger final payment.
  • Interest rate: agreed between the parties and written into the contract.
  • Payments: monthly, quarterly or on another schedule that works for both sides.

How the buyer and seller are protected

In Costa Rica, owner financing is usually secured in one of two ways:

  • Registered mortgage (hipoteca). The buyer receives title at closing, and a mortgage in favor of the seller is recorded in the National Registry. The lien is removed when the loan is paid.
  • Trust (fideicomiso). The property is placed in a trust managed by a neutral trustee, and it is released to the buyer when the payments are complete.

Your attorney will explain which option fits your purchase. Either way, the agreement should clearly state the payment schedule, the interest, what happens if a payment is late, and how the lien is released at the end.

Benefits for buyers

  • No bank approval process or foreign income checks.
  • Faster closings.
  • More flexibility on terms.
  • Rental income from the property can help cover the payments.

Benefits for sellers

  • A larger pool of buyers, which can mean a faster sale.
  • Interest income on the financed balance.
  • Security through a registered mortgage or trust.

Steps to buy with owner financing

  1. Choose a property where the seller offers financing, and agree on price and terms.
  2. Sign an option or purchase agreement and place the deposit in escrow.
  3. Your attorney runs a title study and checks for liens, permits and taxes.
  4. At closing, you pay the down payment, sign the transfer deed and the financing documents, and everything is recorded in the National Registry.
  5. You make your payments, and when the balance is paid, the lien is released.

Remember to budget for closing costs, which in Costa Rica usually run around 3% to 4% of the price, plus the cost of registering the mortgage or setting up the trust.

Properties available now with owner financing

See more properties on our Seller Financing page.

Are you a seller?

Offering financing can help your property stand out. We can help you set terms that protect you and attract more buyers. List your property with us.

Talk to us

Have questions about financing a property in Costa Rica? Contact us, call toll free from the USA and Canada at +1 888 607 6772, or message us on WhatsApp at +506 8822 5061.

This article is general information and is not legal or financial advice. Always review your purchase with a Costa Rica attorney.