Costa Rica Property-Backed Loan Application Process

Applying for a private property-backed loan in Costa Rica starts with a clear picture of the property, the requested amount, the use of funds, and the plan for making payments and repaying the principal balance.

GAP Equity Loans reviews qualified requests starting at US$50,000. GAP reviews borrowers of any nationality, does not require or pull a credit score, and uses first-lien security only. GAP coordinates qualified requests with private lenders and may participate directly in selected opportunities.

A request is reviewed individually. Providing information or submitting an application does not create an approval, funding commitment, rate, term, or closing date. The property, realistic value, title, legal structure, lender requirements, payment plan, and repayment plan all need to make practical sense together.

Start With the Property and the Basic Numbers

You do not need every document perfectly organized before the first conversation. The goal at the beginning is to give GAP enough useful information to understand the property and identify what matters most first.

A strong starting package usually includes:

• A Google Maps, Waze, or WhatsApp location pin
• The requested loan amount
• The exact use of funds
• A realistic estimate of current property value
• Current photographs of the property, road access, driveway, and surrounding area
• A Folio Real and Plano Catastro, if available
• Details of any existing mortgage, lien, annotation, tax balance, or legal concern
• Ownership details, including corporate information if a company owns the property
• A clear plan for payments during the loan term
• A practical plan to repay the principal balance at maturity

For a purchase, it is helpful to provide the proposed purchase price, seller information, location, photographs, Folio Real, Plano Catastro, and any available due-diligence information. For a refinance or equity request, disclose the current debt, payoff amount, and reason for the new financing early.

Step 1: Review the Property as Collateral

For a private property-backed loan, the property is the lender’s security. A lender needs to understand whether the property has realistic value and whether it could be sold in a reasonable time if necessary.

Completed, well-maintained homes in marketable areas are often easier to review than raw land, remote properties, unfinished construction, or projects with incomplete permits and infrastructure.

Depending on the property, the review may consider:

• Location and buyer demand
• Road access and legal access
• Driveway, drainage, water, electricity, and usable area
• Condition, construction quality, maintenance, and improvements
• Comparable properties and realistic resale value
• Title, survey, ownership, and registered issues
• Existing mortgages, liens, annotations, unpaid taxes, or legal claims

A property does not need to be perfect. However, concerns such as weak access, unclear title, a remote location, unresolved construction work, or limited resale demand can affect the amount a lender may consider.

Step 2: Compare the Requested Amount With Realistic Value

Loan-to-value, often called LTV, compares the requested loan amount with the realistic value of the property offered as security.

For example, a US$200,000 loan request against a property realistically valued at US$500,000 equals 40% LTV.

US$200,000 ÷ US$500,000 = 40% LTV

For stronger completed homes in marketable areas, requests around 30% to 40% of realistic value can often be easier to structure. Some stronger files may support a higher amount, sometimes approaching 50%, but that depends on the full file and lender requirements.

A listing price, hoped-for sale price, or the amount spent improving a property is not automatically its realistic lending value. Lenders may consider comparable sales, local supply, location, condition, access, selling costs, and the time a property may take to sell.

Read what loan-to-value means in Costa Rica.

Step 3: Confirm Ownership and First-Lien Position

GAP uses first-lien security only. This means the ownership and registered position of the property need to be clear before the request can move toward closing.

If there is an existing mortgage, private loan, lien, annotation, unpaid tax balance, or other registered issue, disclose it early. Existing debt does not always prevent a request from being reviewed, but it may need to be paid through the appropriate closing process before a new lender can register in first position.

If a Costa Rica corporation owns the property, the lender may need current corporate records, signing authority, and confirmation that the company can enter into the loan and security documents. Outdated corporate records or unclear authority can delay a file.

Most smaller GAP loan requests are secured by a registered first-position mortgage on the Costa Rica property. Some lenders may prefer a trust structure. The closing attorney or notary handles the legal documents, registration, and closing work.

Step 4: Explain the Use of Funds

A lender needs to understand exactly what the loan funds are intended for. Clear, practical use of funds helps the lender understand the request and whether the amount is reasonable.

Examples can include refinancing existing debt, completing a property purchase, improving a completed property, supporting an established business, covering a planned expense, or resolving a short-term liquidity need.

A vague request for money without a clear purpose is more difficult to review. If the request involves construction, land development, or renovation, the lender may need additional information about permits, budget, contractor arrangements, remaining work, utilities, access, and timing.

Step 5: Show the Payment and Repayment Plan

GAP does not require or pull a credit score. That can be useful for borrowers whose income, assets, or financial history are outside a traditional bank model.

However, the property is security. It is not the repayment plan.

Private property-backed loans are normally shorter-term. GAP commonly reviews terms from six months to three years. Many private loans use interest-only payments during the agreed term, with the principal balance due at maturity. The final structure depends on the lender and signed documents.

The lender needs to understand two things:

• How agreed payments will be made during the loan term
• How the principal balance will be repaid at maturity

A repayment plan may involve the sale of the property, the sale of another asset, established rental income, business income, expected investment liquidity, a realistic refinance plan, or another documented source of funds.

A future sale or refinance can be part of the plan, but neither should be assumed. A property may take longer to sell than expected, and a future lender may require different documentation or a lower LTV.

A loan renewal is not automatic. The existing lender may decide not to renew, and a new lender may decide not to replace the loan at maturity.

Read why the repayment plan matters for a private loan.

Step 6: Lender Review and Legal Closing

Once the basic information is clear, GAP can identify what additional information may be needed for the particular request. This may include property documents, corporate records, information supporting the payment plan, a current payoff statement, appraisal support, or documents related to the intended use of funds.

Lawsen Tellier, Director of Operations, can help explain what is most important first and what can be gathered as the review develops.

If a lender wishes to proceed, the closing attorney or notary handles the legal documentation, registration, and closing requirements. Legal fees and closing costs depend on the property, structure, existing debt, legal work, and documents needed for that individual transaction.

GAP does not accept cash. Funds move through the appropriate banking and closing process.

How Long Can a Private Loan Take?

Qualified property-backed loans can often close in about 2 weeks after GAP has a complete file and due diligence is finished. Timing depends on the property, title, lender review, legal work, banking, documents, and closing requirements for everyone involved.

Borrowers can help avoid delay by providing clear property information, disclosing existing debt early, explaining the exact use of funds, and providing a practical payment and repayment plan from the beginning.

What Can Make a Loan Request More Difficult?

• A requested amount that is too high for realistic property value
• Value based mainly on an optimistic listing price or future sale expectation
• Remote property, difficult access, weak buyer demand, or limited usable area
• Unclear title, ownership, corporate records, or signing authority
• Existing liens, annotations, unpaid taxes, or unresolved legal issues
• Missing permit, water, utility, construction, or access information
• An unclear use of funds
• No practical payment plan during the term
• No realistic plan to repay the principal balance at maturity

These points do not always mean a request cannot move forward. They may mean the amount needs to be lower, additional information is needed, the structure needs to change, or an issue needs to be resolved before legal work and closing costs advance further.

Start Your Loan Request

Start with the property location, realistic value, requested amount, ownership details, existing debt, use of funds, payment plan, and principal repayment plan.

Start your loan request here. You can also contact GAP through WhatsApp at +506 4001 6413.

Frequently Asked Questions

Do I need a Costa Rica credit score to apply?

No. GAP does not require or pull a credit score. The lender still needs to review the property, realistic value, title, requested amount, payment plan, repayment plan, and legal structure.

What is the first information I should provide?

Start with a location pin, property photographs, Folio Real and Plano Catastro if available, requested amount, use of funds, estimated realistic value, existing debt details, ownership information, and a practical repayment plan.

Can I apply if a corporation owns the property?

Possibly. The lender may need current corporate records, signing authority, and ownership information where required. The corporation must be able to enter into the loan and security documents.

Can I borrow if there is already a mortgage on the property?

Possibly, but GAP uses first-lien security only. The existing balance, payoff requirements, and closing structure need to be clear. Existing debt may need to be paid through closing before a new lender can register in first position.

How quickly can a private property-backed loan close?

Qualified property-backed loans can often close in about 2 weeks after GAP has a complete file and due diligence is finished. No closing date is guaranteed.

This article is for general information only. It is not a loan offer, legal advice, financial advice, tax advice, real estate advice, or a promise of financing. Loan availability, loan amounts, rates, terms, costs, and closing timing depend on the individual property, borrower file, lender requirements, due diligence, and signed documents.

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