Understand the loan process before you start.
Property-backed lending in Costa Rica is straightforward when the file is clear and well organized. This page walks you through how the process works from the first review to the closing.
A simple process, structured properly.
Property-backed loans are not complicated, but they are structured. The goal is to take a real property, a sensible loan request, and a clear plan, and organize it in a way that makes sense to the lenders we work with.
The cleaner the file, the faster everything moves.
The goal is not to rush into a loan. The goal is to structure the opportunity properly so the borrower, the lender, and the closing process are clear from the beginning.
How the process works
The steps below show how a typical property-backed loan file moves from initial review to the closing.
Initial Review
The process starts with a basic review of the opportunity. We look at the property, requested amount, use of funds, and overall structure.
- Property location and type
- Estimated value
- Requested loan amount
- Use of funds
- Any existing loan on the property
- Basic exit strategy
File Organization
If the file appears to make sense, the next step is organizing the documentation. Private lending is document-driven.
- Property documents
- Registry information
- Photos
- Any available valuation support
- Construction or project details if applicable
Lender Review
Once the file is organized, it can be presented to the lenders we work with. At this stage, the focus is whether the file makes practical sense.
- Property strength and location
- Loan-to-value
- Use of funds
- Documentation quality
- Exit strategy
Terms And Structure
If there is interest in the file, the next step is defining the structure of the loan, including loan amount, term, interest, and repayment plan.
Most standard property-backed loans are short- to medium-term, often between 6 months and 3 years. Depending on the file, many loans are often around 12%.
Legal Structure And The Closing
Once the structure is agreed, the process moves into legal preparation. A Costa Rican notary formalizes the transaction and registers the loan against the property.
- Loan documents are prepared
- Terms are confirmed
- The lien is registered
- Funds are released at the closing
What Can Slow Things Down
The process is usually straightforward, but delays happen when the file is not ready.
- Missing documents
- Unpaid taxes
- Title or registry issues
- Unclear ownership structure
- Incomplete construction documentation
- Slow borrower response
The loan amount must make sense against the property value.
Loan-to-value is one of the key factors lenders review. In simple terms, it compares the loan amount to the estimated value of the property.
For example, if a property is worth 500,000 US dollars and the loan request is 250,000 US dollars, that is 50 percent loan-to-value.
While some loans may go up to 50 percent, stronger files are often closer to 30 percent.
What happens if there is already a loan on the property?
If there is an existing first-position loan, it usually needs to be paid off from the new loan proceeds at the closing so the new lender can move into the required position.
This is a normal part of many transactions and should be addressed early in the process.
Important: an existing loan does not automatically mean the file cannot move forward. It simply needs to be reviewed and handled correctly as part of the closing structure.
Where this fits with your situation
This process works best for borrowers who have a real property, a clear plan, and are prepared to organize their file properly.
It is not about rushing into a loan. It is about structuring the opportunity correctly from the start.
A cleaner file usually moves faster.
If the property, ownership, registry information, photos, use of funds, and exit strategy are clear, the review is easier.
If important information is missing, the process can slow down quickly.
For clean files, straightforward closings can sometimes happen in about 10 days.
Want to see whether your property may qualify?
The best next step is to send your basic details so the file can be reviewed properly. Grupo GAP looks at the property, requested amount, use of funds, and structure before determining whether the opportunity may fit.