Costa Rica Mortgage FAQ | How to Get Financing: US Citizens

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Getting Started with Second Street

Can I finance property in Costa Rica as an American?

Finally, yes.

Backed by billions of dollars from our institutional U.S.-based financial partner, Second Street is an international lender offering true U.S.-style mortgage loans directly to Americans in Costa Rica. There are no surprises or hidden fees. Just 30-year, fixed-rate mortgages.

How is this different from getting a U.S. mortgage?

It’s not. Our loan process is nearly identical to what you’d find from a leading U.S. mortgage lender. If you’ve ever received a mortgage in the U.S. before, our terms and process will be instantly recognizable.

Is Second Street a direct lender?

Yes, Second Street is a direct lender. We are not a mortgage broker.

This means you work directly with us from application through closing.

Who is eligible to apply for a loan with Second Street?

U.S. Citizens and lawful permanent residents (also known as permanent resident aliens and green card holders).

Why finance your home purchase with Second Street?

If you’re looking to buy a home, we bring you closer to owning the property in Costa Rica you’ve dreamed about. Your Second Street mortgage will help keep cash in your pocket, maximize affordability, and extend your budget.

If you bought a home using bank or seller financing, refinancing your loan with Second Street can offer you huge savings with a lower, fixed interest rate with 30 year payment terms, and avoids large balloon payments.

If you bought or built your home with cash, a Second Street cash-out refinance loan can help you to do…anything! Use your loan to upgrade your home, pay for college, or invest in another property – the options are limitless.

Why get a mortgage if I can afford to pay cash?

A mortgage from Second Street can help you maximize financial flexibility, save significantly on taxes (yes, U.S. taxes), and grow your investments over time. Sometimes paying cash is the right thing to do, but when it’s not, there’s Second Street.

Do Second Street mortgages have tax benefits?

You will receive an IRS Form 1098 for interest paid on your mortgage. You may be able to deduct interest paid on your Second Street mortgage on your U.S. tax return, as you would with a U.S. property. Please consult a tax professional for advice.

How much can I borrow?

Our minimum loan amount is $150,000. Loan amounts larger than $2 million are subject to additional review.

Is Second Street based in the United States?

Our team is based in both the U.S. and in Costa Rica. Our U.S.-based team members have decades of U.S. mortgage industry experience to help guide you through the administrative process of obtaining your loan.

Check out our About Us page to learn more about the team behind Second Street.

Can I trust Second Street?

Absolutely. Our team brings 60+ years of experience in real estate and lending, and we are backed by billions of dollars in capital from a publicly-listed U.S. company.

We also maintain full compliance with all applicable regulations in the U.S. and Costa Rica.

Of course, we are registered with SUGEF (Superintendencia General de General de Entidades Financieras).

Is Second Street registered with SUGEF?

Yes—we are registered with SUGEF (Superintendencia General de Entidades Financieras), which is the government regulatory authority for banks, lenders, and financial institutions in Costa Rica.

All banks and regulated lenders in Costa Rica are legally required to register with SUGEF.

Second Street has maintained SUGEF registration since our first day of operation, ensuring full compliance every step of the way.

Who will I work with to get my loan?

When you work with Second Street, you’ll always interact directly with a member of our team. We do not work with any third-party mortgage brokers or services.

Mortgage Eligibility & Qualifications

What is the minimum credit score requirement?

A minimum 720 FICO Score is required.

Can I qualify if I'm self-employed or retired?

Yes. We work with you to look at all your sources of income and assets to best understand how we can qualify you for a loan with us. If you’re eligible, we can also pre-approve you for a loan so you can home shop with confidence.

Pre-qualify today to learn more about how Second Street can help.

Are there any restrictions on the property type or location?

Second Street can lend almost anywhere in Costa Rica as long as the home is fully-completed, sits on titled land, and has legal access to power and water. We can help you finance a house, townhome, or condo that you can use as a primary residence, second home, or investment property.

We do have a few restrictions around lending in deeply remote areas or those with significant natural hazard risks. If you have any questions about a property you’re looking to finance, feel free to contact us.

What is the minimum down payment?

We generally require at least a 25% down payment for home purchases.

Can I take cash out of my existing Costa Rican properties?

Yes, Second Street offers cash-out refinancing. We help you take cash out of your home to do…anything!

Do you finance construction or land purchases?

No. We are currently unable to finance construction, unfinished properties, or land.

We can finance the purchase of a completed new construction. We can also refinance a newly built home once construction has been completed.

If you are interested in buying a pre-sale from a developer, we suggest you get in touch with a member of our team to pre-qualify. We can work with your developer to offer you financing options.

Mortgage Loan Terms, Fees, and Payments

What interest rates and loan terms do you offer (fixed, adjustable, etc.)?

At Second Street, we offer fixed-rate loans with 30-year terms with the lowest rates and best terms in Costa Rica.

Our rates are similar to those for certain non-government-backed mortgages in the U.S. and slightly higher than a typical U.S. government-backed mortgage.

Pre-qualify today to learn more about your rate for a Costa Rica mortgage.

Does Second Street charge any fees?

Like most U.S. lenders, Second Street charges a fee to underwrite and fund your loan. All of our fees are simple, transparent, and only due at closing. You won’t owe us anything if you don’t end up borrowing from us.

We may also be able to help you save on closing costs with substantial transfer tax savings. For most clients, these savings can almost entirely offset the fees related to your loan. How? As a SUGEF-registered lender in Costa Rica, we structure our loan transactions in the same way that local banks do when they lend to Costa Ricans, which typically result in major savings on transfer taxes related to your purchase.

Pre-qualify today to learn more about our fees and the benefits of getting a mortgage in Costa Rica with Second Street.

Are there any prepayment penalties?

No. There is no charge or penalty for paying off your loan early.

How will I make my monthly payment?

Second Street offers U.S.-based loan servicing for an easy, seamless payment experience. We can also help manage payments for your property taxes and home insurance, simplifying Costa Rican home ownership.

Application & Approval Process

How long does the full application and approval process typically take?

We can typically process a loan, from pre-qualifying to closing, in 4-6 weeks.

If you’re still shopping for a home, we can offer you a pre-approval in just a few days. We’ll let you know exactly how much you can borrow, so you can make the right offer on the right home.

Is my personal information safe and secure?

Absolutely. Our digital lending platform is SOC 2 Type II certified and we take significant precautions to safeguard your personal information at all times.

We will never sell your personal information to third parties. Please see the Privacy Policy on our website for more information on how we use your personal information.

How do I get started with the application?

The first step is to pre-qualify by setting up an introductory call with the Second Street team. On the call, we'll learn more about your goals and determine your eligibility with a few pieces of information about your credit, income, and assets.

If you are eligible, we can pre-approve you for a loan amount or help you submit a complete application (if you already have a home under contract).

How do I get pre-approved for a loan?

Second Street offers fully verified pre-approvals. This means that we verify your income, assets and credit before determining your pre-approval amount.

Within just a few days of providing us your information, we'll send you a pre-approval letter stating exactly how much you can borrow, so you can shop with confidence (subject to qualifying).

Take the first step and pre-qualify through an introductory call with our team.

What is the rest of the application process like?

If you have already been pre-approved, the remaining process should only take a few weeks and will look something like this:

Complete your application
You’ll send us a copy of your accepted offer letter or purchase contract and provide additional information about the home you’re buying, including the price.

Final Underwriting Approval
‍Our underwriting team will conduct a final review of your profile and credit. We’ll also send an appraiser to evaluate the home and have a trusted law firm conduct a title search and traditional due diligence on the property.

Closing
‍Once your loan is approved, we’ll coordinate a seamless closing appointment with the seller.

Is the process for refinancing any different?

Nope. After speaking with our team, you’ll first submit your personal and financial information, along with supporting documentation, just like you would for a pre-approval. We’ll conduct an appraisal and due diligence on your property and move you to closing, if approved.

Do I have to be pre-approved to get a loan?

No. If you already have an offer on a property, your first step will still be to pre-qualify through an introductory call with our team. If you qualify, we’ll help you quickly complete a full application and get an appraisal of the property so we can properly evaluate your loan.

Does Second Street require an appraisal?

Like any U.S. mortgage lender, Second Street will coordinate a professional appraisal of your home to ensure that the home can serve as sufficient collateral for your loan.

We work with two of Costa Rica’s leading appraisal firms and will make sure we get an accurate and fair assessment of the value of your home value. You will also receive a copy of the appraisal report.

Does Second Street offer rate locks?

Yes, once you are pre-approved for a loan, we will lock your rate to help prevent your rate from changing prior to closing. We don’t charge anything to lock your rate for up to 45 days.

What documents will I need to provide to qualify?

We will need all the same documents you would use to apply for a U.S. mortgage. This will include proof of income such as W2s and tax returns, proof of assets such as bank or brokerage account statements, and identifying documentation such as a state ID or passport.

We’ll provide you a comprehensive list of everything you need after you pre-qualify.

How does closing and escrow work?

We use an escrow account for every transaction. We can use either a U.S. or Costa Rican escrow account.

All escrow agents in Costa Rica are overseen by SUGEF, Costa Rica’s financial regulator. At Second Street, we partner with a trusted and established escrow agent who has a 30-year history operating in Costa Rica and provides services to several major banks.

Frequently Asked Questions | Costa Rica Mortgages

FAQ Categories

Getting Started with Second Street

Mortgage Eligibility & Qualifications

Mortgage Loan Terms, Fees, and Payments

Application & Approval Process

Frequently Asked Questions |
Costa Rica Mortgages