A private loan is a mortgage or asset-backed loan funded by individual or institutional investors instead of a traditional bank, secured against titled real estate in Costa Rica.

Private lending focuses on the value and marketability of your collateral, not on strict income proofs or long credit histories. Approvals are faster and documentation is simpler, but rates are usually higher than bank loans.

Private loans are ideal for people who need to move quickly, who do not qualify with banks, who are self-employed or foreign residents, or who have a good property but limited traditional documentation.

Yes. Foreign individuals, corporations, and expats can borrow as long as they own suitable titled property in Costa Rica that can be registered as collateral.

Common uses include purchasing property, consolidating debt, construction, business expansion, bridge funding, project development, and releasing equity for other investments.

GAP Equity Loans structures and manages loans and connects you with a network of private lenders. The funds usually come from those lenders, not from a retail bank.

Yes. All loans are documented through a Costa Rican notary and registered at the National Registry as a mortgage lien or similar security over your property.

Yes. Once the mortgage is registered, the lien appears on your property record, just like a bank mortgage would.

You can, but the total debt and lien positions must stay within acceptable loan-to-value limits and must be clearly structured so all lenders understand their position.

No. Whether you are a first-time borrower or an experienced developer, you can apply. The key factors are the quality of your collateral, the viability of your plan, and a realistic exit strategy.

A home equity loan uses the equity in your titled property as collateral to secure a private mortgage, allowing you to borrow against up to roughly 50% of its appraised market value.

Titled homes, condos, villas, apartments, and some mixed-use or vacation rentals can be used as collateral, as long as the title is clean and the property is marketable.

Typical loan amounts range from about USD $50,000 up to over $1,000,000, depending on your property value, location, and overall structure.

Home equity loans are usually capped at around 50% of a professional appraisal, sometimes slightly lower for remote or specialty properties.

Once documents are in order, approvals can often be issued in 7–10 business days, subject to appraisal, due diligence, and final lender sign-off.

Yes. Funds can be used for personal expenses, business investments, debt consolidation, or other legal purposes agreed in the contract.

Yes. You remain the owner and can live in or rent the property as normal, as long as you respect the loan terms and keep payments current.

Yes. Many borrowers refinance bank or private loans using a new home equity loan to simplify their debt, change the term, or access additional funds.

Yes. It is common to cross-collateralize two or more properties to reach the desired loan amount or reduce overall risk.

These are asset-based loans, so strict income proof is not always required. However, lenders still want a realistic explanation of how you will service monthly interest payments.

Most are structured as interest-only with a balloon payment at maturity, although some partial principal reductions can be negotiated.

Home equity loans are typically short- to medium-term, often from 6 months up to 3 years, with possible renewal subject to review.

A commercial loan is a private mortgage secured by commercial property such as offices, warehouses, retail units, hotels, or income-producing buildings in Costa Rica.

Commercial loans commonly range from around USD $50,000 to over $10,000,000, depending on the property, income, and structure.

Yes. For active businesses, lenders expect valid municipal and operating permits, especially for hotels, restaurants, and other regulated activities.

Yes, but vacancy, location, and market demand are carefully reviewed, and loan-to-value may be more conservative.

With complete documentation, funding can often be obtained in 5–10 business days after conditional approval and appraisal.

Yes. Funds can be used for expansion, renovations, buying equipment, acquiring additional locations, or restructuring existing debt.

Yes. While collateral is the main focus, lenders usually review basic financials, rent rolls, or revenue information to understand sustainability.

Yes. Portfolios of properties can be pledged in one structure, provided titles are clear and the total loan-to-value remains within limits.

No. They can be granted to individuals, Costa Rican entities, or foreign companies that own the commercial property.

Yes. Many borrowers refinance slower bank facilities with private capital to move faster or to simplify complex debt structures.

Most are interest-only, but some larger structures may include partial amortization or agreed principal reductions during the term.

Yes. Stable rental income is often a key part of the exit plan and may support renewals, refinancing, or eventual bank take-out.

A construction loan provides staged funding to build or substantially renovate a property, with funds released in draws as work progresses.

Construction loans usually range from about USD $50,000 up to $10,000,000 for larger developments, depending on scale and collateral.

Construction loans are short-term facilities, typically up to a maximum of 3 years, structured around your construction schedule and exit plan.

You generally need titled land, stamped architectural and structural plans, detailed budgets, a realistic timeline, municipal construction permits, and a clear exit strategy.

Funds are released in stages based on an agreed draw schedule linked to completed milestones, often verified by inspections and invoices.

For serious construction financing, key permits and approvals must be obtained. Without them, lenders may only offer a smaller land or bridge loan.

Yes. Lenders want to know who is building the project, their track record, and how the budget and timeline will be controlled.

It is possible, but you must still provide professional plans, permits, and cost controls. Lenders may be more conservative if there is no experienced builder.

Yes. You typically pay monthly interest on the funds disbursed to date, not on the full facility amount.

In some cases, once construction is complete and the property is stabilized, you may refinance into a longer-term private or bank loan.

It can, provided zoning, land-use rules, and permits allow the proposed build. These factors are carefully reviewed during due diligence.

Yes. Builder’s risk or construction insurance is normally required, naming the lender as beneficiary in case of damage or loss.

Project financing is medium- to large-scale funding for developments such as residential communities, hotels, commercial centers, or mixed-use projects, backed by real estate and detailed feasibility work.

Project financing usually starts around USD $1,000,000 and can exceed $100,000,000 for major developments, depending on scope and due diligence.

Larger projects involve legal, technical, environmental, financial, and operational risks. A structured verification process is used to reduce those risks before funding.

The Water Letter (Carta de Disponibilidad de Agua) confirms a legal and sufficient water source for the project. Without it, a project cannot legally proceed, so lenders treat it as a non-negotiable requirement.

For larger projects, a professional feasibility or market study is strongly preferred, along with financial models that show realistic cash flows and exit scenarios.

Yes. Existing land or bridge loans are often paid off as part of a new project facility, provided overall loan-to-value and risk remain acceptable.

Yes. Hotels, boutique resorts, villa projects, and similar hospitality assets can qualify if permits, location, and projected demand are strong.

Usually yes. Funds are tied to development phases and milestones, protecting both borrower and lender as the project advances.

Pre-sales, pre-leases, or signed letters of intent are often a major plus and can improve confidence in the project’s viability.

Because of the depth of due diligence, the approval timeline is longer than for small loans and depends on how quickly complete documentation is provided.

Yes. Foreign developers can apply as long as they control the land, provide complete documentation, and comply with Costa Rican regulations.

Yes. Infrastructure costs are normally included in the budget and financed as part of the overall development plan.

Shovel-ready means the project has all key permits, approvals, and technical studies in place so construction can legally begin immediately.

Typical requirements include land-use permit (Uso de Suelo), environmental viability (SETENA, where applicable), Water Letter, approved building plans (CFIA), municipal construction permit, and worker insurance (INS).

Most legal and technical risks have already been resolved, so lenders can focus on collateral, budget, and exit strategy, allowing funding decisions in as little as 5–10 business days once files are complete.

Securing all required permits and approvals can take roughly 4–12 months, depending on the municipality, project size, and environmental factors.

You can share your file, but full shovel-ready treatment normally requires all critical permits to be granted. Pending permits may lead to a smaller or staged facility instead.

Yes. Regardless of permits, an appraisal and valuation review are required to confirm the market value and the appropriate loan-to-value.

They are often medium- to large-scale, but smaller, fully permitted projects can also benefit from shovel-ready funding.

Yes. A detailed and realistic budget, including contingencies and professional fees, is essential.

Yes. Some loans focus on completing infrastructure so the developer can later phase vertical construction through sales or additional funding.

Typically yes. The draw schedule is agreed up front and tied to specific milestones and certifications.

A partially built project can qualify as shovel-ready once all missing permits, updated plans, and compliance issues are resolved.

Rates are still within the typical private-lending range, but very strong, de-risked projects may justify more competitive structures.

Most private loans fall in a range of roughly 12% to 16% annually, depending on collateral, leverage, loan size, and complexity.

They are usually fixed for the term of the loan, which provides clarity on your monthly interest payments.

For most loan types, including home equity and commercial, the maximum LTV is typically around 50% of a conservative, professional appraisal.

Yes. Raw land, remote properties, unusual assets, or projects with higher risk may receive lower LTV limits to protect all parties.

The term is based on the purpose of the loan and your exit plan. Shorter terms are common for bridge and construction loans; slightly longer terms may be used for stabilized assets.

Many are interest-only, but some larger or longer-term structures can include scheduled principal payments or partial amortization.

Prepayment options depend on the contract. Many loans allow early payoff, sometimes with a minimum interest period or notice requirement.

Some agreements include a minimum number of months of interest or a small prepayment fee. These terms are always disclosed before you sign.

Interest is generally calculated on the outstanding principal balance using the agreed annual rate divided into monthly periods.

Most private loans are denominated in U.S. dollars. If you earn in colones, your bank can convert the currency when you make payments.

In some structures, a portion of the interest can be prepaid or capitalized, but most borrowers make monthly cash payments.

Late interest and default conditions begin according to the contract. Ongoing non-payment can lead to legal action, so communication with the lender is crucial if issues arise.

No. Residency is not required. Foreigners can borrow as long as they own suitable property that can be used as collateral.

Typically, you provide a passport copy, contact details, basic financial information, and KYC (know-your-client) forms requested by compliance.

You will usually need a recent property certification from the National Registry, the plano catastrado (survey plan), and clear photos of the asset.

Not always, but for some structures, they help show your ability to cover interest and support the overall risk assessment.

Yes. For development, construction, and project financing, a basic business plan with budgets, timelines, and an exit strategy is essential; larger projects need more detailed models.

Yes. Corporations provide a current personería jurídica, bylaws or shareholder resolutions, and documents showing who is authorized to sign.

Additional documentation may be required to prove representation and signing authority under the foreign jurisdiction and in Costa Rica.

For land intended for development, construction, or project funding, proof of water availability or a Water Letter is normally requested.

For pure equity loans, permits are not necessary. For construction and shovel-ready funding, permits and approvals are a major requirement.

Yes. Private lending is more focused on collateral and project viability than on foreign credit scores.

Very important. Lenders want a clear plan for how the principal will be repaid at maturity, such as property sale, refinance, or business cash flow.

Yes. Many borrowers plan to repay through unit sales, hotel operations, or other project revenues, supported by realistic projections.

Yes. Loans are granted only on properly titled property registered at the National Registry in Costa Rica.

Concession properties are reviewed very carefully and are often outside normal lending parameters because of additional legal restrictions and renewal risk.

Yes, but land-only loans typically have lower loan-to-value limits and stricter review of access, zoning, water, and topography.

Yes. Properties must have legal and practical access. Landlocked properties are very difficult to finance.

Off-grid assets can qualify if they are titled, accessible, and marketable, but they may be evaluated more conservatively.

Existing liens are reviewed and are usually paid off or restructured at closing so the new lender can take the proper position on title.

Yes. Zoning determines what can be built or operated on the land and is particularly important for commercial, construction, and project loans.

Yes. Properties with tenants often make strong collateral, but lease terms are reviewed to ensure they don’t conflict with lender rights.

Yes. Titled condos and homes in gated communities are common collateral, assuming HOA fees and regulations are in good standing.

Yes. All registered owners must consent and sign or provide powers of attorney authorizing the loan and lien.

Absolutely. Very steep or difficult terrain can limit development options and may reduce appraised value and acceptable loan-to-value.

Yes. Segregation processes usually need to be finalized, and each lot properly titled, before closing a loan secured by those parcels.

Typically: initial discussion, document collection, conditional approval, appraisal and due diligence, final approval, closing with the notary, lien registration, and disbursement of funds.

For standard home equity or commercial loans, many deals close in 1–3 weeks after documents are complete. Larger projects require more time for due diligence.

Not necessarily. Many borrowers sign via a properly legalized power of attorney if they are outside the country.

The notary verifies title, corporate authority, lien terms, and compliance with local law, then supervises signatures and files the mortgage at the National Registry.

Funds are usually released shortly after closing once all agreed-upon conditions are met. For construction and projects, disbursements may follow a draw schedule.

Closing usually includes appraisal, notary/legal fees, registration costs, and any taxes or prior debts that must be paid off as part of the transaction.

Yes. Maintaining property insurance — and construction insurance where applicable — with the lender as beneficiary is typically a loan condition.

Yes. Serious tax or utility arrears can affect the property and may breach the loan agreement, so staying current is important.

You can sell as long as the loan is paid off at or before closing. The lien must be canceled at the National Registry when the debt is settled.

At maturity, the remaining principal and any outstanding interest become due. You can repay through sale, refinance, or other liquidity events detailed in your exit plan.

Yes, subject to lender approval. Extensions are based on payment history, updated property value, and overall risk at the time of the request.

Many borrowers use private loans as a bridge until they can qualify for a longer-term bank mortgage or institutional financing.

Communicate early with the servicing team or lender. Proactive communication makes it much easier to explore adjustments, extensions, or other solutions.

Yes. Even though the notary protects legal formalities, borrowers should always feel free to seek independent legal or financial advice before committing to any loan.