Private Lender Loan Process in Costa Rica

The private lender loan process in Costa Rica begins with a clear review of the property, requested amount, title position, realistic value, payment plan, and principal-repayment plan. 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. GAP 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 10 business days

Rates may be similar to Costa Rica bank rates available to expats and foreign borrowers. Every request is reviewed individually. Sending information does not create an approval, funding commitment, rate, loan amount, term, or closing date.

Private property-backed financing is not a long-term bank mortgage, a home equity line of credit, or unsecured personal financing. It is shorter-term financing secured by qualifying real estate.

Step 1: Share the Basic Property and Loan Request

The first step is enough clear information for GAP to understand the property and the requested financing.

A first review normally starts with:

• A Google Maps, Waze, or WhatsApp location pin
• Current photographs of the property, road access, driveway, and surrounding area
• The requested loan amount and exact use of funds
• A brief explanation of how payments will be made and how principal will be repaid
• A Folio Real and Plano Catastro, if available
• Any available appraisal, purchase information, comparable sales, or other value support
• Information about existing mortgages, liens, annotations, tax balances, or legal concerns

You do not need every document perfectly organized before the first conversation. Clear starting information helps identify what matters most for the individual request.

Step 2: Review Whether the Property Is Practical Collateral

The property is the lender’s security. A lender needs to understand whether it has realistic current value, practical resale marketability, workable access, and a legal position that can support the required security.

The review may consider:

• Location, road access, driveway, condition, drainage, utilities, and marketability
• Ownership, title, corporate authority where relevant, and registered issues
• Recorded easements, rights of way, utility rights, and neighboring-use issues
• Whether the property is completed, unfinished, specialized, remote, raw land, or income-producing
• Realistic value support from comparable sales, purchase information, or an appraisal when needed

Completed, well-maintained homes in marketable locations can often be easier to review than raw land, very remote property, unfinished construction, specialized buildings, or property with unanswered access, water, drainage, permit, or utility questions.

A clear file helps GAP understand whether the property may be practical collateral. It does not create an approval.

Step 3: Review the Requested Amount and Loan-to-Value

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 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, 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 future sale price is not automatically the value a lender will use.

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 location, access, utilities, usable area, title, and marketability.

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

Step 4: Confirm the First-Lien Closing Structure

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 current 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.

Closing documents and registration are handled through the appropriate closing attorney or notary. Legal fees and closing costs are reviewed as part of the transaction structure.

Step 5: Explain the Payment and Principal-Repayment Plan

The property is security, but it is not the repayment plan. A lender needs to understand 2 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, rental income, the sale of another asset, expected investment liquidity, a realistic refinance plan, or another documented source of funds.

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

Read why your repayment plan matters for a private loan.

Step 6: Lender Review and Due Diligence

GAP works with private lenders and may participate directly in selected opportunities. The full request is reviewed individually based on the property, requested amount, title position, realistic value, payment plan, principal-repayment plan, legal work, and lender requirements.

Due diligence can include title review, value support, property documentation, confirmation of registered matters, review of the proposed security, and confirmation of the closing structure.

More information or documents may be requested as the review develops. This is normal and helps make sure the lender understands the property and transaction before documents are prepared.

Step 7: Closing and Registration

Once the lender, borrower, and closing professionals have agreed on the required structure, the closing attorney or notary prepares the necessary documents.

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 documents and applicable published interest-guarantee guidelines.

After GAP has a complete file and due diligence is finished, qualified loans can often close in about 10 business days.

Timing depends on title, lender review, legal work, banking, documents, existing debt, and closing requirements. No closing date is guaranteed.

Can Foreigners Use the Private Lender Loan Process?

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.

That does not make the review casual. The property, title position, requested amount, payment plan, principal-repayment plan, and complete supporting file still need to work.

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 the private lender loan process in Costa Rica?

The process normally starts with a review of the property, requested amount, realistic value, title position, payment plan, and principal-repayment plan. If the request may be workable, lender review, due diligence, legal documentation, and closing follow.

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 foreigners apply for property-backed financing?

Yes. GAP reviews qualified requests from borrowers of any nationality. Permanent residency, Costa Rican citizenship, and a local guarantor are not automatic requirements.

How much can I borrow against Costa Rica property?

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.

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 long are private property-backed loan terms?

Terms generally range from 6 months to 3 years. The final structure depends on the lender and signed loan documents.

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 10 business days. 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)