Costa Rica Private Property-Backed Loan Checklist

Preparing a Costa Rica property-backed loan request is easier when the important facts are gathered before a lender begins reviewing the file. This checklist explains what owners, buyers, and business borrowers should have ready first.

GAP reviews qualified requests for possible placement with private lenders and may participate directly in selected opportunities. Each request is reviewed individually. The property, title, ownership, requested amount, repayment plan, legal structure, and lender requirements all matter.

Private Property-Backed Financing at a Glance

• Requests generally start at US$50,000.
• GAP does not require or pull a credit score for a normal property-backed loan request.
• GAP works with first-lien property security only.
• Terms generally range from 6 months to 3 years.
• Stronger completed-property files may sometimes support around 50% loan-to-value; requests around 30%–40% can often be easier to review.
• After GAP has a complete file and due diligence is finished, qualified loans can often close in about 10 business days.

These are practical guidelines, not promises. The purpose of this checklist is to help you submit a useful first file and identify important issues early.

1. Start With the Property

The real estate is the lender’s security. Before discussing terms, be ready to explain what the property is, where it is located, who owns it, and why it has practical resale demand.

Start with a Google Maps, Waze, or WhatsApp location pin. Include current photographs of the road, entrance, driveway, exterior, views, and improvements. A lender needs a realistic picture of access and condition, not only the best photos of the home.

Also provide the lot size, construction size, bedrooms, bathrooms, utilities, road access, and a short description of the area. If there are retaining walls, shared access, a river, a steep driveway, nearby commercial activity, or another practical concern, disclose it early. These items do not automatically end a request, but they can affect marketability and legal review.

2. Confirm That a First-Lien Structure Is Possible

GAP works with first-lien security only. In many requests, the closing attorney or notary registers a first-position mortgage against the Costa Rica property. In selected cases, a lender may require a guarantee trust structure instead.

If the property already has a mortgage, lien, annotation, unpaid taxes, or another legal issue, disclose it at the beginning. Existing debt does not always end the discussion, but the closing must be able to deliver the lender’s agreed first position. This can sometimes involve paying out existing registered debt at closing.

Send the folio real, Plano Catastro, and any title information you have. An appraisal may be needed later, but GAP does not need an appraisal copy simply to begin a practical review.

3. Make Ownership and Signing Authority Clear

For personally owned property, the lender and closing attorney need to verify the registered owner and title position. For a property held in a Costa Rica corporation, provide the legal entity name and identification number, current corporate status, relevant corporate records, and proof of who has authority to sign.

Incomplete corporate records can slow a request even when the real estate itself is strong. If more than one owner must sign, say so from the beginning. Clear ownership information saves time later.

4. Ask for a Realistic Amount

Private lenders do not rely only on an asking price or an owner’s estimate. They may consider realistic value support, comparable sales where available, location, access, condition, title, buyer demand, and how practical the property would be to sell if needed.

Loan-to-value, often called LTV, compares the requested amount with the realistic value of the property. Stronger completed-property files may sometimes support around 50% LTV. Requests around 30%–40% can often be easier to review when the property and documentation are strong.

Raw land is handled differently. There is a large supply of land for sale in many parts of Costa Rica, and vacant land can take longer to sell. When workable at all, raw land often supports a much lower LTV position, commonly closer to 10%–20% of realistic value. Completed, marketable homes can often be easier to review because they may be usable or rentable while being sold.

5. Explain Exactly How the Funds Will Be Used

State the requested amount and give a simple, specific explanation of the use of funds. Examples may include business working capital, construction completion, improvements, refinancing a property-related obligation, a documented purchase, or a partner buyout.

A vague request is harder to evaluate. A clear use of funds helps a lender understand the timing and whether the proposed structure makes sense. Legal fees and closing costs are considered as part of the transaction structure. GAP does not accept cash; funds move through the appropriate banking and closing process.

6. Show How Interest Will Be Paid and Principal Repaid

The property is the lender’s security. It is not the repayment plan. Explain how interest payments are expected to be made and how the principal balance will be repaid at maturity.

Depending on the transaction, the repayment plan may involve a documented sale, refinance, business income, rental income, a completed construction project, outside funds, or another supported source. A future sale or refinance can be part of the plan, but it should not be treated as certain.

Terms generally range from 6 months to 3 years. Interest-only payments with principal due at maturity may be considered, depending on the transaction and lender terms. A renewal is never automatic. The loan must remain in good standing, and the same lender or a new lender must agree to any replacement arrangement.

7. Gather the First File

You do not need a complete closing file to start a conversation. The following items are a useful first package:

• Passport or other identification.
• Google Maps, Waze, or WhatsApp location pin.
• Current photographs of the property, road, driveway, and improvements.
• Folio real, Plano Catastro, and known title information.
• Lot size, construction size, bedrooms, bathrooms, access, utilities, and condition.
• Information about existing mortgages, liens, annotations, taxes, or legal issues.
• Corporate records if a Costa Rica corporation owns the property.
• The requested amount and exact use of funds.
• The expected source of interest payments and principal repayment plan.

8. Be Direct About Potential Issues

A good first file is not one that hides problems. It identifies them early so the lender can decide what matters and what may be resolved. Tell GAP about access limitations, title concerns, existing debt, corporate changes, unpermitted construction, missing documents, or expected timing issues.

Qualified requests from borrowers of any nationality can be reviewed. Costa Rica residency, citizenship, or a local guarantor is not required simply to submit a normal property-backed request. The property and complete transaction structure must still work for the specific lender.

What Happens After You Submit the Checklist?

After GAP receives a useful first file, the next step is to identify what information is most important, whether the property and requested amount may fit, and what due diligence or legal work would be needed.

After GAP has a complete file and due diligence is finished, qualified loans can often close in about 10 business days. Actual timing depends on the title situation, lender review, legal work, banking, closing requirements, and how quickly all parties provide the needed information.

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

Frequently Asked Questions

Do I need a credit score for a Costa Rica property-backed loan?

No. GAP does not require or pull a credit score for a normal property-backed loan request. The property, title, requested amount, repayment plan, and complete transaction structure are reviewed individually.

What is the minimum loan request?

Property-backed loan requests generally start at US$50,000. Smaller requests may be harder to place where the property is remote, difficult to sell, or requires disproportionate legal work.

Can I use a property held in a Costa Rica corporation?

Possibly. The lender needs clear corporate records, current company status, and proof that the correct person has authority to sign. The underlying property and title must also work.

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

Possibly. Existing debt must be disclosed early. GAP works only with first-lien security, so the legal closing structure must provide that agreed first position.

How much can I borrow against my Costa Rica property?

It depends on the full file. Stronger situations may sometimes support around 50% loan-to-value, while 30%–40% can often be easier to review. Raw land commonly supports a much lower percentage. No amount is guaranteed.

How long do property-backed loan terms run?

Terms generally range from 6 months to 3 years. The exact term, payment structure, and any interest-guarantee or early-release provisions depend on the lender and signed documents.

How fast can a qualified loan close?

After a complete file and due diligence, qualified loans can often close in about 10 business days. Timing varies with title, documentation, legal work, banking, lender review, and closing requirements.

Start With a Clear Request

Submit your information through the full loan application. Include the property location, estimated realistic value, requested amount, existing debt, use of funds, and repayment plan.

This article is for general information only. It is not legal, tax, financial, real estate, or lending advice. Property security and closing documents should be reviewed with qualified Costa Rica legal professionals for the specific transaction.

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