Private Loan Approval Process in Costa Rica: What Is Reviewed

A private loan approval process is an individual review of a Costa Rica property-backed financing request. It is not a promise that a request will be approved or funded. The information considered depends on the property, the proposed structure, and the complete file.

What a property-backed financing review considers

GAP Equity Loans coordinates qualified Costa Rica property-backed financing requests with private lenders and may lend directly in selected situations. Each request is reviewed on its own facts, including the collateral, loan purpose, repayment ability, and proposed exit plan.

Ordinary requests generally start at US$50,000, and terms generally range from six months to three years. These general parameters do not assure an outcome for a particular request.

The property and loan-to-value

Review may include title, ownership, existing liens, realistic value, location, access, condition, utilities, marketability, purpose of funds, repayment ability, and exit plan. A stated asking price alone does not determine how much financing a property may support.

Financing may reach about 50% loan-to-value depending on the complete file. Lower loan-to-value requests are normally easier to review because they leave more protective equity in the property offered as security.

Credit scores and supporting information

GAP does not require a traditional credit score, but every request is still reviewed. Information needed varies by the request. Supporting information appropriate to the individual file may help explain the property, the requested use of funds, repayment ability, and the proposed exit plan.

There is no single fixed document checklist for every borrower or property. The information that is useful in one request may not be the same as the information needed for another.

First-lien security and existing mortgages

GAP works with first-lien security only. An existing mortgage does not automatically prevent review, but payout, title position, and closing structure must allow the new financing to be properly secured in first position.

Existing liens or title questions need to be understood before a request can be evaluated responsibly. The closing structure must address them in a way that protects the intended first-lien position.

Repayment ability and exit planning

A request should include a realistic explanation of how the financing is expected to be repaid or resolved. The repayment plan and exit plan may be considered alongside the property and purpose of funds. A clear proposal helps explain the structure of the request; it does not guarantee a decision.

How funds are handled

GAP does not accept cash. Funds move through the appropriate banking and closing process, with the transaction structured around the property and the required first-lien security.

Discuss a Costa Rica property-backed financing request

If you would like to discuss whether a Costa Rica property-backed financing request may be suitable for review, provide the property details, requested amount, purpose of funds, and your proposed repayment or exit plan. Learn more about Property-Backed Loans in Costa Rica or review the frequently asked questions before contacting GAP Equity Loans.

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