Loan Against Property in Costa Rica: A Practical Guide

If you own titled real estate in Costa Rica, you can use it to raise capital without selling. A loan against property in Costa Rica is secured by a registered mortgage on that property, and the review centers on the property, the amount and how the principal will be repaid. This guide covers what qualifies, how much you can borrow, what it costs and what happens from request to repayment.

How a loan against property works

A private lender provides the funds, and the loan is secured by a first-lien mortgage registered against your property. GAP Equity Loans arranges the transaction through closing: it reviews the request, determines the property value used, with input and acceptance from the lender, and coordinates the documents. After closing, you pay the lender directly.

Payments are monthly and interest-only, and the principal is repaid in full at maturity. Terms run from six months to three years, so the loan works best when you know how the principal will come back: a sale, a refinance, business income or incoming capital.

What property qualifies

• Titled property. The property must be registered in the National Registry. GAP does not lend against maritime-zone concessions.
• First-lien position. Any existing mortgage or lien must be paid off before or at closing so the new lender holds first position.
• Homes, commercial buildings and land. Improved property is the standard case. Titled land without a house is reviewed on stricter terms, usually at a lower loan-to-value.
• A clear repayment plan. The purpose of the loan and the source of repayment are part of the review.

Your nationality, where you live and your residency status do not restrict who can apply, and no credit score is required. Every loan still depends on the property review, the documents and lender approval.

How much you can borrow

Loans start at US$50,000. Above US$1 million, additional paperwork and due diligence are required. The amount depends on the loan-to-value: 50% of the property value is the maximum for the standard product, not the target. Around 30% or less is preferred, and 40% is generally more favorable than 50%.

For example, on a property valued at US$400,000 with no existing debt, 30% would be US$120,000 and 50% would be US$200,000. Lower leverage can support better pricing, but the property, its location and the complete transaction also matter.

What it costs

The interest rate is set for each loan during review. Borrowers pay the loan fees, which include legal fees and GAP’s loan origination fee, and those fees are deducted from the proceeds at closing. There are no costs to pay before closing on standard loans.

Ask GAP for your exact figures before you commit, so you know how much cash you will receive. That is not a fixed fee; the amounts depend on the loan and are explained before you sign. Early repayment has a penalty, and its amount and conditions depend on the lender. See what borrowers pay on a private loan for more detail.

From request to closing

1. Loan request. Share the property details, the amount you need, the purpose and your repayment plan.
2. Review. GAP reviews the title, existing liens, the property value and the file as a whole.
3. Documents. You provide the documents requested for the loan.
4. Closing. The loan documents are signed, the mortgage is registered and the funds are disbursed.

Banks set their own requirements, which can make bank loans harder for newcomers, and bank loans can take many months, if not longer, to close. GAP closes loans within 10 business days once the required documents are complete.

Risks to plan for

A loan against property puts the property on the line. If payments stop or the principal is not repaid at maturity, the lender can enforce the mortgage. Plan the exit before you sign, leave room for a sale or refinance to take longer than expected, and have your own attorney review the documents. Read what happens in a foreclosure in Costa Rica before you commit.

Frequently Asked Questions

Can a foreigner get a loan against property in Costa Rica?

Yes. Borrowers of any nationality can apply, and Costa Rican residency is not required.

Do I need a credit score?

No. GAP does not require a credit score. The review focuses on the property, the amount and your repayment plan.

How are payments made?

Monthly and interest-only, paid directly to the lender. The principal is due at maturity.

Can I use land as collateral?

Titled land can qualify, on stricter terms than improved property. Maritime-zone concessions do not qualify.

This article is general information only and is not legal, financial, or tax advice. Every loan depends on property review, documentation, and lender approval.

Ready to talk about your property? WhatsApp us at +506 4001 6413 to get started, call start a loan request, review the loan requirements, or email info@gap.cr.

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