How Much Can You Borrow with a Hard Money Loan in Costa Rica?

How much you may be able to borrow depends on more than how much equity you believe is in the property. A private lender needs to understand the property’s realistic current value, location, access, title position, requested amount, payment plan, and plan to repay the principal balance at maturity.

GAP reviews qualified property-backed financing requests starting at US$50,000 from borrowers of any nationality. 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.

How Private Lenders Decide How Much to Lend

Private property-backed financing is not based on a simple online formula. The lender needs to decide whether the real estate can provide reliable security for the requested amount and whether the repayment plan makes sense.

A lender may review:

• The property’s realistic current value
• Location, road access, driveway, condition, drainage, utilities, and marketability
• Title, ownership, existing registered issues, and corporate authority where relevant
• The requested amount and exact use of funds
• Existing mortgages, private loans, liens, annotations, tax balances, or legal concerns
• How agreed payments will be made during the loan term
• How the principal balance will be repaid at maturity
• Lender requirements and the required closing structure

The property is important, but it is not the repayment plan. A lender needs to see both the security and a realistic path to repay the loan as agreed.

What Is Loan-to-Value?

Loan-to-value, usually called LTV, compares the requested loan amount with the property’s realistic current value.

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

The lower the requested loan amount is compared with realistic value, the more room there may be for property risks, market changes, legal costs, selling costs, and lender requirements. That does not mean a low-LTV request is automatic. The title, location, condition, repayment plan, and full file still matter.

What LTV Can Be Workable?

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.

That depends on the complete property file, title position, payment plan, principal-repayment plan, lender requirements, and closing structure.

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

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

Why Realistic Value Matters More Than an Asking Price

Property owners often begin with an asking price, a price paid years ago, or an amount invested in construction. Those numbers can be useful background, but they do not automatically establish lending value.

A lender may consider comparable properties, recent sales where available, the property’s condition, road access, location, usable area, market demand, and how easily the property could realistically be sold if necessary.

A beautiful home in a strong location can be easier to understand than a specialized property with limited buyer demand. A property may also have significant personal value to its owner while still being difficult to value or sell in a reasonable timeframe.

Completed Homes, Raw Land, and Other Property Types

Not every property type is reviewed the same way.

Completed, well-maintained homes in marketable locations can often be easier to structure because there may be a clearer buyer market, usable improvements, practical access, and more available value support.

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 the location, road access, utilities, usable area, title, zoning or permit questions, and marketability.

Unfinished construction, very remote property, specialized commercial buildings, and property with unanswered water, drainage, access, boundary, or utility questions can also be harder to structure.

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 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.

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 helpful for foreign property owners who do not have a Costa Rica 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 together.

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, documented rental income, the sale of another asset, expected investment liquidity, a realistic refinance plan, or another documented source of funds.

A future property sale or refinance can be part of the plan, but neither should be assumed. A loan renewal is not automatic, and another lender may not replace the loan at maturity.

Read why your repayment plan matters for a private loan.

Can Foreigners Borrow Against Property in Costa Rica?

Yes. GAP reviews qualified property-backed financing requests from borrowers of any nationality. Costa Rican citizenship, permanent residency, a local guarantor, and a Costa Rica credit score 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 Hard Money 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.

What Helps Start the Review?

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

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

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

How much can I borrow against property in Costa Rica?

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.

What is a good LTV for a private loan?

There is no single LTV that works for every request. Lower LTV can provide more room for property and market risks, but the lender still reviews the title, location, condition, payment plan, principal-repayment plan, and full file.

Does GAP use the listing price to determine loan value?

Not automatically. A listing price is only one piece of information. Lenders may consider comparable properties, purchase information, an appraisal when needed, condition, location, access, marketability, and the complete file.

Can raw land be used as collateral?

Possibly, but raw or vacant land is reviewed more cautiously than a completed home. Workable requests may be much lower because location, access, utilities, usable area, title, and marketability all matter.

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 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 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)