High-LTV Property Loans in Costa Rica: What to Expect

“High LTV” can sound like a promise of maximum financing. For Costa Rica property-backed financing, it is not. Loan-to-value is one part of a complete review, and the amount that may be available depends on the individual file.

What loan-to-value means

Loan-to-value, often called LTV, compares the requested financing amount with a realistic value for the property offered as security. A request for a smaller percentage of that value generally presents more protective equity for the lender. That is why lower loan-to-value requests are normally easier to review.

Financing may reach about 50% loan-to-value depending on the complete file. That is not a standard amount, a guarantee, or a commitment to lend. The final evaluation depends on the collateral and the overall structure of the request.

Why a higher-LTV request needs a complete review

A lender needs more than an estimated property value to understand a request. The review may consider the property’s title, ownership, existing liens, location, access, condition, utilities, realistic value, and marketability. The purpose of funds also matters, as do the borrower’s repayment plan and exit strategy.

For example, a property can appear valuable while having title, access, condition, or lien issues that affect whether it can properly secure financing. A realistic plan for repayment or exit helps explain how the financing is expected to be resolved within the agreed term.

First-lien security and existing mortgages

GAP Equity Loans works with first-lien security only. Existing mortgages do not automatically prevent a review. They may be considered when the payout, title position, and closing structure allow the new financing to be properly secured in first position.

That assessment is specific to the file. Before a request can be evaluated responsibly, the parties need to understand what must be paid, how title will be handled, and how the closing can protect the intended first-lien position.

Other practical terms to understand

Ordinary requests generally start at US$50,000. Terms generally range from six months to three years. These are general parameters, not a promise that a particular request will be approved or funded.

GAP Equity Loans does not require a traditional credit score, but every request is still reviewed. Supporting information appropriate to the individual file may be needed to assess the property, the proposed use of funds, repayment ability, and the exit plan.

How GAP Equity Loans works

GAP Equity Loans coordinates qualified Costa Rica property-backed financing requests with private lenders and may lend directly in selected situations. Each request is considered on its own facts; there is no automatic approval and no financing available without review.

GAP does not accept cash. Funds move through the appropriate banking and closing process, with the transaction structured around the property and the required security.

Preparing a more useful request

A clear request starts with accurate property information, a realistic value, a clear explanation of the purpose of funds, and a practical repayment or exit strategy. Information about ownership, title, liens, access, utilities, and condition helps determine whether the property can be reviewed as collateral.

For an overview of the process, visit Property-Backed Loans. You can also review the frequently asked questions for additional general guidance.

Discuss your Costa Rica property-backed financing request

If you have a Costa Rica property and would like to discuss whether a request may be suitable for review, contact GAP Equity Loans with the property details, requested amount, purpose of funds, and your proposed repayment or exit plan. A conversation can help clarify the information relevant to your particular file.

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