Owner Financing

How Can I Offer Seller Financing?

Offering Seller Financing is quite simple. It’s important to work with a real estate company such as Gap Real Estate with experience in this matter to ensure you stay compliant with Costa Rica law. Your lawyer should also ensure that your lien is enforceable should your borrower cease making payments down the road.

Often owner financing can be the quickest and maybe even the only way for a property to be sold. Never forget every potential buyer is important and should be followed through with. Owner financing gives the buyer the opportunity to have the time necessary to get a conventional mortgage from the bank. Make sure your financing is not too expensive and use our example below as a guide otherwise if they go through the bank option you could be waiting a minimum of 3 months and up to 10 months or more for the bank’s response, which could ultimately be a denial which is bad for both sides. This is a tried-and-true option that has helped many people conclude deals.

Gap Real Estate’s recommended owner financing terms: 30% down (including everything such as agent fees and lawyer fees) first year interest rate is 8%, 2^nd year 10%, 3^rd year 14% and every year onward after that at 14% until the principle is paid in full.