How to Get a Bridge Loan in Costa Rica

A bridge loan in Costa Rica is short-term, property-backed financing used while a borrower waits for a defined source of funds to become available. That may be a property sale, refinance, business transaction, investment liquidity, asset sale, or another documented repayment source.

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 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
• For stronger completed properties, 30%–40% LTV can often be easier to structure
• Qualified loans can often close in about 2 weeks after a complete file and due diligence

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

What Is a Bridge Loan?

A bridge loan is meant to cover a temporary gap between a current need for funds and a reasonably expected future source of repayment.

For example, an owner may need funds now but expects to receive proceeds from the sale of another property. A buyer may need short-term financing while a bank refinance, business transaction, or asset sale is being completed. A borrower may also need to pay out existing registered debt so a new first-lien loan can be structured properly.

The word “bridge” does not mean the loan is easy or automatic. The lender still needs to understand the property, title position, requested amount, realistic value, payment plan, and principal-repayment plan.

When Might a Bridge Loan Be Considered?

A qualified borrower may consider a bridge loan when there is a defined short-term need and a realistic way to repay the loan at maturity.

• Buying a property before funds from another property sale arrive
• Giving an owner time to sell an asset without rushing the sale of the secured property
• Paying out existing debt so a new first-position mortgage can be registered
• Covering a defined renovation, construction stage, or property improvement
• Refinancing a short-term property obligation
• Covering a documented business need using suitable real estate as security
• Waiting for a refinance, investment liquidity event, or other documented source of funds

A request based only on available equity, without a realistic repayment path, may not be workable. The lender needs to see how the principal balance is expected to be repaid, not only what property is available as security.

The Property Is Security, Not the Repayment Plan

This is one of the most important points to understand.

• Security: What property secures the loan, what is its realistic value, and can the lender obtain the required first-lien position?
• Repayment: How will agreed payments be made during the term, and how will the principal balance be repaid at maturity?

A borrower may own a valuable home, commercial property, development property, or land and still have a weak loan request if the repayment plan depends only on a hoped-for future event.

A future property sale, refinance, business transaction, investment distribution, or asset sale may be part of the plan. However, it should be realistic and supported where possible. The lender may need to understand likely timing, existing debt, selling costs, tax considerations, net proceeds, and whether the expected funds are actually available.

A loan renewal is not automatic. Another lender is not required to replace the loan at maturity.

Read why your repayment plan matters for a private loan.

How Much Can You Borrow?

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

For example, a US$200,000 bridge-loan 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. 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, previous purchase price, construction cost, insured value, or hoped-for sale price is not automatically the value a lender will use.

Raw land, unfinished construction, remote property, specialized buildings, or properties with unresolved access, water, drainage, utility, or permit questions may require a lower amount or may not be workable.

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

Why First-Lien Security Matters

GAP uses first-lien property security only. Before a request can move toward closing, the lender needs to understand ownership, existing debt, liens, annotations, unpaid taxes, and other registered issues.

An existing mortgage, private loan, lien, or legal issue does not automatically prevent financing. However, the current payoff amount and legal closing structure need to be clear early. Existing registered debt may need to 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 corporate records and signing authority.

What Does a Lender Review for a Bridge Loan?

A lender reviews more than the fact that a borrower owns property. The full request needs to make sense.

• Property location, marketability, road access, driveway, condition, drainage, utilities, and usable area
• Ownership, title, corporate authority where relevant, and registered issues
• Existing mortgages, private loans, liens, annotations, taxes, or other legal concerns
• Realistic value support from comparable sales, 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
• Information supporting the proposed repayment source, where available

A lender may decline a request after review. Starting with clear information saves time for everyone.

Does GAP Require a Credit Score?

No. GAP does not require or pull a credit score for a normal property-backed loan request.

This can matter to foreign owners who do not have Costa Rica credit history. It does not remove the need for careful review of the property, title, requested amount, payment plan, principal-repayment plan, legal work, and complete supporting file.

Can Foreigners Apply for a Bridge Loan?

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 Does a Bridge Loan Take?

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, payoff requirements, and closing requirements. No closing date is guaranteed.

What Helps Start a Bridge-Loan Review?

• 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 during the term
• A clear principal-repayment plan, with supporting information about the expected source of funds where available

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 is a bridge loan in Costa Rica?

A bridge loan is short-term financing secured by suitable Costa Rica real estate. It is generally used while a borrower waits for a defined source of funds, such as an asset sale, property sale, refinance, business transaction, or investment liquidity event.

Can I use a bridge loan while waiting to sell another property?

Possibly. The proposed property sale may be part of the repayment plan, but the lender needs to consider realistic value, expected timing, selling costs, existing debt, likely net proceeds, and the full property-backed loan request.

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.

What security does GAP require?

GAP uses first-lien property security only. Ownership, title, existing debt, liens, annotations, taxes, payoff requirements, and the legal closing structure all need to be reviewed.

Can foreigners apply for a bridge loan?

Yes. GAP reviews qualified property-backed financing requests from borrowers of any nationality. The property and complete loan file still need to satisfy lender requirements.

How long are bridge-loan terms?

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

How quickly can a qualified bridge 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)