How to Improve Your Chances of Getting a Loan in Costa Rica

A stronger loan request is clear, realistic, and complete before a lender sees it. Good property equity may help, but it is not enough on its own. A private lender also needs to understand the property, title position, realistic value, requested amount, use of funds, payment plan, and how the principal balance will be repaid at maturity.

GAP coordinates qualified property-backed financing requests with private lenders and may lend directly in selected cases. GAP reviews requests starting at US$50,000, 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
• Terms generally ranging from 6 months to 3 years
• First-lien property security only
• GAP does not require or pull a credit score for a normal request
• Qualified borrowers of any nationality may be reviewed
• 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.

Start With a Realistic Loan Request

One of the fastest ways to weaken a request is to ask for more than the property can realistically support. Private lenders compare the requested amount with the property’s realistic current value. This is called loan-to-value, or LTV.

For example, a US$200,000 request against a property realistically valued at US$500,000 equals 40% LTV.

US$200,000 ÷ US$500,000 = 40% LTV

For stronger completed properties in marketable locations, requests around 30% to 40% LTV can often be easier to structure. In a stronger file, an amount approaching 50% LTV may sometimes be considered, depending on the property, title position, repayment plan, lender requirements, and legal structure.

No LTV amount is guaranteed. A listing price, prior purchase price, construction cost, insured value, or hoped-for future 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.

Make the Property Easy to Review

A lender needs more than a brief description or a few interior photographs. The file should make it easy to understand where the property is, what it is, how it is accessed, and whether it is marketable.

Completed homes and commercial properties in accessible, marketable locations can often be easier to review than vacant land, unfinished construction, remote property, or specialized buildings.

• A Google Maps, Waze, or WhatsApp location pin
• Current photographs of the road, access, driveway, exterior, buildings, land, and surrounding area
• A Folio Real and Plano Catastro, if available
• Accurate details on lot size, construction, utilities, access, and current use
• Value support, including an appraisal, purchase information, or credible comparable properties
• A straightforward explanation of any unfinished work, access concern, permit issue, or unusual feature

Clear information does not make a difficult property financeable. It does allow the lender to identify concerns early rather than losing time later.

Address Title and Existing Debt Early

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

An existing mortgage or lien does not automatically prevent financing. However, the current balance, payoff requirements, 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. Shareholder information and corporate status may also be relevant.

Trying to hide a title issue, existing debt, ownership concern, access problem, or permit question rarely helps. It can delay the review or stop the request once the issue appears during due diligence.

Have a Clear Use of Funds

The lender will want to know why the money is needed and whether the purpose makes sense for short-term property-backed financing.

Examples may include:

• Completing repairs or improvements before sale or refinance
• Paying out an existing obligation that affects title or timing
• Completing construction or an infrastructure need
• Covering a documented business expense or short-term opportunity
• Creating time for an expected property sale or other transaction
• Acquiring another property or asset where timing matters

A vague request for “working capital” may need more explanation. A lender may ask for budgets, contracts, payoff information, invoices, or other documents that help explain the use of funds.

The Property Is Security, Not the Repayment Plan

A valuable property does not by itself make a loan request workable. The lender needs both suitable security and a realistic plan to repay the principal balance at maturity.

• 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 future property sale, refinance, business transaction, asset sale, investment liquidity event, or another documented source may be part of the repayment plan. It needs to be realistic and supported where possible.

A loan renewal is not automatic. Another lender is not required to replace the loan when it matures.

Read why your repayment plan matters for a private loan.

Respond Clearly and Quickly During Review

A complete file can save time, but lenders and closing professionals may still need more information as the review develops. Quick, accurate answers help keep the request moving.

That means providing the requested title records, property photographs, location information, value support, payoff details, corporate documents, and repayment information without changing the story or leaving important gaps.

It also means being realistic about timing. After GAP has a complete file and due diligence is finished, qualified loans can often close in about 2 weeks. Timing still depends on lender review, title, legal work, banking, documents, existing debt, payoff requirements, and closing requirements. No closing date is guaranteed.

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.

This can matter to foreign owners who do not have Costa Rica credit history or who may not fit a bank’s standard residency, income, employment, or document requirements.

It does not remove the need for careful review. The property security, title position, realistic value, requested amount, payment plan, and principal-repayment plan still need to work.

Private Financing Compared With Bank Financing

Private property-backed lending and bank financing are different products with different review standards.

Banks may offer longer terms and may have their own requirements involving income, residency, employment, credit history, appraisals, banking, insurance, and supporting documents. Their approval and closing timelines may also be longer.

Private lenders focus closely on the property, first-lien security, realistic value, requested amount, repayment plan, and required legal structure. Terms are generally shorter, usually ranging from 6 months to 3 years.

Private financing is not a guaranteed replacement for bank financing. It is short-term financing that needs to be structured carefully.

What Helps Strengthen a Loan Request?

• A realistic requested amount based on credible current value
• Current property photos, a location pin, and practical access details
• Clear ownership, title, lien, tax, and payoff information
• A Folio Real and Plano Catastro, if available
• Full corporate records and signing authority if a corporation owns the property
• A defined and documented use of funds
• A clear plan for payments during the term and repayment of principal at maturity
• Prompt, accurate responses when more information is requested

Lawsen Tellier, Director of Operations, can help explain what is most important first and what can be gathered as the review develops.

Frequently Asked Questions

How can I improve my chances of getting a loan in Costa Rica?

Start with a realistic requested amount, clear property information, honest title and debt disclosure, credible value support, a defined use of funds, and a practical plan to repay the principal balance at maturity.

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 can make a loan request harder to structure?

Common concerns include an unrealistic requested amount, weak or remote access, unclear title, existing liens, incomplete documents, unfinished construction, unresolved permits, poor marketability, or no realistic repayment plan.

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.

How long are the loan terms?

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

How quickly can a qualified request 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.

Start your loan request here. You can also contact GAP through WhatsApp at +506 4001 6413.

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)