How to Prepare a Project for Financing in Costa Rica

Preparing a project for financing well is one of the biggest factors in whether a private lender can move forward with a request. GAP Equity Loans coordinates with private lenders, and GAP’s own lenders sometimes fund loans directly, reflecting their confidence in the product.

Start With the Basics

A useful starting file includes the property location, the requested loan amount, the intended use of funds, ownership details, any existing obligations on the property, and a realistic repayment plan. GAP does not require or pull a credit score for a normal request, though every request still goes through property review, documentation, and lender approval.

Requests start at US$50,000, with terms generally ranging from six months to three years. GAP publicly lends up to 50% loan-to-value, though private lenders tend to be conservative and often prefer staying closer to 30–40% LTV. The lower the loan-to-value, the easier a request generally is to place with a lender, and the better the chance of a lower rate; higher LTV requests tend to be harder to place and may come with a higher rate.

What Makes a File Stronger

A well-prepared project file typically includes:

• Clear property location and ownership documentation
• A realistic, supportable current value for the property
• A specific, documented use of funds
• A clear repayment plan and, where relevant, a backup exit
• Corporate records and signing authority, if a corporation owns the property

Property-specific matters such as permits, utilities, construction status, or access can also matter, depending on the project.

Liens and First-Position Security

Private lenders require first-position security. Most GAP loans are secured by a lien on the property, though some lenders may instead choose a trust structure — that decision belongs to the lender. If an existing lien is already on the property, it must be paid off or removed at closing so GAP’s lender can be placed in first position.

How Long Does Preparation and Review Take?

Once GAP has a complete file and due diligence is finished, qualified loans can often close in about 10 days. Timing depends on the completeness of the file, lender review, and closing requirements — a well-prepared file moves faster than one that needs additional documentation gathered along the way.

Private Financing Compared With Bank Financing

Bank financing often involves longer approval timelines and closer review of income, employment, and credit history. Private property-backed lending focuses primarily on the property itself, which is why a well-prepared file can often move faster. For foreigners and expats specifically, GAP’s rates are generally comparable to Costa Rica bank rates.

Frequently Asked Questions

What information should I prepare first?

Property location, requested amount, use of funds, ownership details, and a repayment plan are a good starting point for review.

Does GAP require a credit score?

No. GAP does not require or pull a credit score for a normal property-backed request. Every request is still reviewed individually.

How quickly can a qualified project close?

Once GAP has a complete file and due diligence is finished, qualified loans can often close in about 10 days. No closing date is guaranteed.

Is this information a guarantee of approval or terms?

No. This article is general information only and is not financial, legal, or tax advice. Every arrangement depends on property review, documentation, and lender approval.

Ready to prepare your project for review? Contact GAP Equity Loans to discuss your property and financing goals.

For expats and foreign developers in Costa Rica, traditional bank construction financing is generally not available at all. Opening a Costa Rica bank account requires permanent residency — a process that takes around four years from first arriving on a temporary residency category. No bank account means no local credit history, making bank financing inaccessible regardless of creditworthiness elsewhere. Private property-backed financing through GAP operates on a completely different timeline: with a complete file, qualified requests can close in about 10 days, with funds disbursed in construction stages as the project advances.

Article by Glenn Tellier (Founder of CRIE and Grupo Gap)