Borrow Money in Costa Rica!

Have a look through the variety of types of loans we focus on

How to Borrow Money in Costa Rica

If you own property and need financing, there are different ways to borrow money in Costa Rica. The right choice depends on your property, how much you need, and when you need the funds.

Banks set their own lending requirements. They may ask for income records, credit history, residency documents, and other financial information. These requirements can make bank loans harder for newcomers, foreign property owners, and people whose income comes from outside Costa Rica. Bank financing can also take many months, if not longer, to close.

Private loans secured by Costa Rican property offer another route. Instead of relying on your credit score, the review focuses on the property, its ownership, its value, and your plan for repaying the money.

This option can suit homeowners, business owners, investors, retirees, and foreigners who already own property in Costa Rica. It can also help people who need short-term financing while waiting for a property sale or another source of funds. Each request is reviewed individually, and the property must meet the lending requirements.

Loans in Costa Rica at a Glance

• Minimum loan: US$50,000.
• Loan term: 6 months to 3 years.
• Loan amount: up to 50% of the value GAP determines; around 30% or less is preferred.
• Monthly payments: interest-only, with the principal repaid at the end of the term.
• Security: every loan is secured by a first-degree mortgage registered in Costa Rica’s National Registry.
• Credit and residency: no credit score and no Costa Rican residency required.
• Nationality: Costa Ricans and foreigners of any nationality may apply.
• Closing time: GAP closes loans within 10 business days once the required documents are complete.
• Interest: the rate is set for each loan during review.
• Closing costs: nothing to pay before closing. Legal fees and GAP’s loan origination fee are deducted from the loan at closing; the amount depends on the loan.
• Property: registered property can qualify. Titled land is reviewed on stricter terms than a finished home. Maritime-zone concessions and untitled possession do not qualify.

What You Can Use the Money For

Property-backed financing lets owners use part of the value of their real estate without selling it. People looking for loans in Costa Rica usually have a practical, dated reason:

• Buying another property: use the equity in a property you already own to help buy another home, lot or investment property.
• Renovating or finishing a build: complete a house, improve a property or finish a construction project that needs more funds.
• Business needs: equipment, operations, expansion or another business expense.
• Paying off expensive debt: replace costly debts with one property-backed loan when it makes financial sense.
• Bridging a gap: cover a need while you wait for a property sale, a business payment or other expected funds.

The purpose matters, but so does repayment. Because the principal is due at the end of the term, GAP looks at how you plan to repay before moving forward.

How Much Can You Borrow?

The amount depends mainly on the value GAP determines for your property, its condition, location and title, and any existing debt. GAP prefers loans of around 30% or less of the property value; a loan can reach 50% when the property and the full file support it.

Example: on a property valued at US$400,000 with no mortgage or other debt:

• At 30%: the loan would be US$120,000.
• At 50%: the loan would be US$200,000.

These figures are examples, not an approved amount; the final amount depends on the review. Loans above US$1 million need additional paperwork and due diligence.

What to Send to Get Started

You do not need a complete file before your first message. A few basic details help GAP understand your property and what you need:

• Location: a Google Maps, Waze or WhatsApp location pin.
• Current photos: the property, buildings, access and general condition.
• Property documents: the folio real number and Plano Catastro (registered survey plan), if you have them.
• Your request: how much you need and what it is for.
• Existing debt: any current mortgage, registered liens or other claims on the property.
• Repayment plan: how you plan to repay the principal when the term ends.

Can Foreigners Borrow Money in Costa Rica?

Yes. People of any nationality can borrow money in Costa Rica against eligible property registered in the country. You do not need Costa Rican residency, and no credit score is required. The property must have registered title in Costa Rica; maritime-zone concessions and untitled possession are not eligible.

Where We Lend

GAP reviews properties across Costa Rica, including these areas:

• Central Valley: San José, Escazú, Santa Ana, Heredia, Alajuela.
• Central Pacific: Jacó, Herradura, Manuel Antonio.
• South Pacific: Uvita, Dominical, Ojochal.
• Guanacaste and Nicoya: Tamarindo, Flamingo, Conchal, Brasilito, Papagayo, Playas del Coco, Santa Teresa, Nosara.
• Northern Zone: La Fortuna, Arenal.
• Caribbean: Cahuita, Puerto Viejo.

A good location helps, but it does not mean a loan will be approved. If your property is somewhere else, send it in anyway: every file is reviewed on its own.

Frequently Asked Questions

Can a foreigner borrow money in Costa Rica?

Yes. Foreigners of any nationality can apply for a private property-backed loan. The property must be titled and registered in Costa Rica. GAP reviews ownership, value, existing debts and the repayment plan; the decision depends on the property and the review, not on your nationality.

Do I need a credit score or Costa Rican residency?

No. You do not need a credit score, local credit history or residency. The review focuses on the property, its registered title, the amount requested and how you plan to repay. You will still provide identification and the documents needed for the review.

How fast can I get a loan in Costa Rica?

GAP closes loans within 10 business days once the required documents are complete. Missing paperwork, title issues or an existing mortgage that has to be paid off can lengthen the process.

What does a private loan cost?

The interest rate is set for each loan during review. You pay interest monthly and repay the principal at the end of the term. There is nothing to pay before closing: legal fees and GAP’s loan origination fee are deducted from the loan at closing, and the amount depends on the loan.

Can I borrow against a property that already has a mortgage?

Yes, as long as the existing mortgage is paid off before or at closing. Every loan GAP arranges is secured by a first-degree mortgage registered in the National Registry, so the existing balance is taken into account when working out how much you can borrow.

Here is a short video with the founder of Grupo Gap, answering some of the most frequently asked questions regarding how to reach your financial goals.

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