Applying for Private Loans in Costa Rica: What to Prepare

Applying for a private loan in Costa Rica starts with a clear property file and a realistic repayment plan. GAP reviews qualified property-backed financing requests starting at US$50,000 from borrowers of any nationality.

The property, title position, realistic value, requested amount, use of funds, payment plan, and principal-repayment plan all need to work. GAP does not require or pull a credit score for a normal property-backed loan request and uses first-lien property security only.

• Requests starting at US$50,000
• Borrowers of any nationality may be reviewed
• GAP does not require or pull a credit score
• First-lien property security only
• Terms generally range from 6 months to 3 years
• 30%–40% LTV can often be easier to structure for stronger completed properties
• Some stronger files may approach 50% LTV, depending on the complete file
• After a complete file and due diligence, qualified loans can often close in about 2 weeks

Every request is reviewed individually. Sending information does not create an approval, funding commitment, rate, loan amount, term, or closing date.

What Is a Private Property-Backed Loan?

A private property-backed loan is a defined loan secured by qualifying Costa Rica real estate. The lender’s security is registered in the required first position through the appropriate legal closing structure.

This type of financing may be considered for a property purchase, renovation, construction stage, business need, refinance, payoff of existing registered debt through a proper closing structure, or another documented use of funds.

GAP works with private lenders and may participate directly in selected opportunities. The lender still needs to understand the property and how the loan will be repaid.

What Should You Prepare Before Applying?

You do not need every document perfectly organized before the first conversation. Start with enough reliable information for GAP to understand the property, the requested financing, and the purpose of the funds.

• A Google Maps, Waze, or WhatsApp location pin
• Current photographs of the property, road access, driveway, buildings, and surrounding area
• The requested loan amount and exact use of funds
• A Folio Real and Plano Catastro, if available
• Realistic value support, including appraisal information, purchase information, or comparable properties
• Details of any existing mortgage, private loan, lien, annotation, tax balance, or legal concern
• Corporate records and signing authority if a corporation owns the property
• A clear plan for agreed payments during the term
• A clear plan for repayment of the principal balance at maturity

A clear file helps GAP understand whether a request may be workable. It does not create approval.

What Does a Lender Review?

A lender reviews more than the fact that a borrower owns property. The property must have realistic current value, practical marketability, workable access, and a title position that can support the required first-lien security.

The review may include:

• Property location, access road, driveway, condition, drainage, utilities, and marketability
• Title, ownership, corporate authority where relevant, and registered issues
• Existing mortgages, private loans, liens, annotations, unpaid taxes, or other legal concerns
• Recorded easements, rights of way, utility rights, and neighboring-use issues
• Realistic value support from comparable properties, purchase information, or an appraisal when needed
• The requested amount and exact use of funds
• How agreed payments will be made during the loan term
• How the principal balance will be repaid at maturity

Completed, well-maintained homes in marketable locations can often be easier to review. Raw land, very remote property, unfinished construction, specialized buildings, or property with unanswered access, water, drainage, permit, or utility questions may be harder to structure.

GAP Does Not Require or Pull a Credit Score

GAP does not require or pull a credit score for a normal property-backed loan request. This can be relevant for foreign property owners who do not have a local credit history.

That does not make the review casual. The property, title position, requested amount, realistic value, payment plan, principal-repayment plan, legal work, and lender requirements still need to work.

How Much Can You Borrow Against Costa Rica Property?

Private lenders compare the requested loan amount with the property’s realistic current value. This is called loan-to-value, or LTV.

For example, a US$200,000 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 locations, requests around 30%–40% of realistic value can often be easier to structure. Some stronger files may sometimes support an amount approaching 50% LTV, depending on the complete property file, title position, repayment plan, lender requirements, and legal structure.

No LTV amount is guaranteed. A listing price, prior purchase price, construction cost, insured value, or hoped-for future sale price is not automatically the value a lender will use.

Raw or vacant land is reviewed more cautiously. It is not normally treated like a completed home for LTV purposes, and workable requests may be much lower depending on location, access, utilities, usable area, title, and marketability.

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

First-Lien Security Is Required

GAP uses first-lien property security only. Before a request can move toward closing, the ownership and legal position of the property need to be understood.

An existing mortgage, private loan, lien, annotation, unpaid tax balance, or another registered issue does not automatically rule out a request. However, the current balance, payoff requirements, and closing structure need to be clear early.

In some situations, existing registered debt must be paid through the proper closing process before a new lender can register in the required first position.

If a corporation owns the property, the lender and closing attorney or notary will need to review the relevant corporate records and signing authority.

The Property Is Security, Not the Repayment Plan

A lender needs to understand two separate 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 established business income, rental income, the sale of another asset, 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 loan renewal is not automatic, and a new lender may not replace the loan at maturity.

Read why your repayment plan matters for a private loan.

Can Foreigners Apply for Private Loans in Costa Rica?

Yes. GAP reviews qualified property-backed financing requests from borrowers of any nationality. Costa Rican citizenship, permanent residency, and a local guarantor are not automatic requirements simply to have a request reviewed.

The property, title position, requested amount, realistic value, payment plan, principal-repayment plan, and complete supporting file still need to work.

How Long Are Private Loan Terms?

Terms generally range from 6 months to 3 years. Payment structure, maturity, interest, legal fees, closing costs, and early-repayment provisions depend on the lender and signed loan documents.

Any early repayment should be reviewed against the signed loan documents and applicable published interest-guarantee guidelines.

How Quickly Can a Qualified Loan Close?

After GAP has a complete file and due diligence is finished, qualified loans can often close in about 2 weeks.

Timing depends on title, lender review, legal work, banking, documents, existing debt, and closing requirements. No closing date is guaranteed.

Start With the Basics

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

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

Frequently Asked Questions

What do I need to apply for a private loan in Costa Rica?

Start with the property location, photographs, requested amount, use of funds, realistic value support, available title documents, existing debt information, and a clear repayment plan. More information may be needed as the review develops.

Does GAP require or pull a credit score?

No. GAP does not require or pull a credit score for a normal property-backed loan request. Each request is reviewed individually based on the property, title, requested amount, repayment plan, and complete file.

Can foreigners apply for a private property-backed loan?

Yes. GAP reviews qualified requests from borrowers of any nationality. Permanent residency, Costa Rican citizenship, and a local guarantor are not automatic requirements.

How much can I borrow against Costa Rica property?

For stronger completed homes in marketable locations, requests around 30%–40% of realistic value can often be easier to structure. Some stronger files may sometimes support an amount approaching 50% LTV. No amount is guaranteed.

Can a property with an existing mortgage be used as collateral?

Possibly. GAP uses first-lien property security only. Existing debt does not automatically rule out a request if the proper first-lien closing structure can be arranged.

How long are private property-backed loan terms?

Terms generally range from 6 months to 3 years. The final structure depends on the lender and signed loan documents.

How quickly can a qualified loan close?

After GAP has a complete file and due diligence is finished, qualified loans can often close in about 2 weeks. Timing depends on the full file and closing requirements. 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)