Documents Needed for Project Financing in Costa Rica

Project financing in Costa Rica requires more than an attractive idea, an architectural rendering, or a projected future sale price. A lender needs enough clear information to understand the property, the project, the requested funds, the remaining work, and the plan to repay the loan.

The exact documents depend on the property and project. A completed home needing renovation is different from raw land, a partially built residence, a small development, or a commercial project. The purpose of the first review is not to create unnecessary paperwork. It is to identify what matters most before legal work and closing costs move further.

GAP Equity Loans reviews qualified private property-backed loan requests starting at US$50,000. GAP reviews borrowers of any nationality, does not require or pull a credit score, and uses first-lien security only. GAP coordinates qualified requests with private lenders and may participate directly in selected opportunities.

Every request remains subject to individual review, lender requirements, due diligence, and a workable legal and closing structure. Providing documents does not create an approval, funding commitment, draw schedule, rate, or closing date.

Start With the Basic Project Information

Before gathering a large file, start with a short, clear summary of the request. A lender needs to understand what is being financed and why.

• Property location, including a Google Maps, Waze, or WhatsApp pin
• Property type and current condition
• Whether the property is completed, under construction, being renovated, or vacant land
• Requested loan amount
• Exact use of funds
• Expected project timeline
• Estimated realistic current value
• Estimated cost to complete the remaining work
• How payments would be made during the loan term
• How the principal would be repaid at maturity

A lender is normally more comfortable with a request that has a clear amount, specific use of funds, realistic budget, and practical repayment plan. A vague request for “project capital” without a defined purpose is more difficult to review.

Property Documents

The property is the lender’s security. The lender needs to understand exactly what is being offered, who owns it, whether it has practical access, and whether it can be sold in a realistic time if necessary.

The initial property file may include:

• A current Folio Real from the National Registry
• A Plano Catastro or survey plan
• Recent photographs of the property, structures, road access, driveway, and surrounding area
• Lot size, usable area, construction size, bedrooms, bathrooms, and current condition
• Information about road access, easements, drainage, retaining work, water, and electricity
• Any existing appraisal, purchase information, comparable sales, or other value support
• Details of any mortgage, lien, annotation, tax balance, claim, or legal concern

A completed, well-maintained home in a marketable location can be easier to understand than raw land or unfinished construction. Land, hillside properties, and projects in remote areas may require more detail about access, usable area, water, drainage, utilities, permits, and realistic buyer demand.

Ownership and Corporate Documents

The lender must be able to confirm who owns the property and who has authority to sign the loan and security documents.

If the property is held personally, the lender may ask for identification and basic ownership information. If a Costa Rica corporation owns the property, the lender may need current corporate records, including:

• Corporate identification and legal name
• Current personería jurídica or corporate authority record
• Shareholder and beneficial-owner information where required
• Information confirming who can legally sign for the corporation
• Proof the corporation is in good standing, where applicable
• Corporate resolutions or approvals if required for the proposed loan

Outdated corporate records, unclear signing authority, or unpaid corporate obligations can delay a review. It is better to identify those issues early than after a lender has spent time reviewing the property.

Title, Liens, and Existing Debt

GAP uses first-lien security only. Any existing mortgage, private loan, annotation, unpaid tax, legal claim, or other registered issue should be disclosed at the beginning.

An existing obligation does not automatically prevent a new request from being reviewed. However, the lender needs to understand the current balance, payoff amount, release requirements, and whether the existing debt can be paid out through the appropriate closing process.

A lender or closing attorney may need current title information, payoff letters, tax information, and legal review before deciding whether a new first-position mortgage or other agreed security structure is practical.

Read how to use property as collateral in Costa Rica.

Construction, Permit, and Infrastructure Documents

For construction, renovation, development, or land-based projects, the lender needs to understand whether the project can be legally and practically completed. Future value should not be treated as certain while essential work, permits, utility connections, or infrastructure remain unfinished.

Depending on the project, useful documents may include:

• Construction plans, site plans, or architectural drawings
• Construction permits and approved plans where applicable
• Water availability, existing service, meter status, or provider information
• Electricity availability and current connection status
• Municipal, zoning, or land-use information where relevant
• Road, easement, drainage, retaining-wall, and site-work information
• Environmental or technical documents that apply to the property
• Photographs showing completed work and the present construction stage
• Contractor, architect, engineer, or builder details where relevant

A water letter, permit application, or preliminary plan may be useful, but it does not automatically mean every requirement has been completed. The lender needs to understand the present status, not only the expected future status.

The Construction Budget and Use of Funds

A lender needs a practical explanation of where the money will go. A simple, realistic budget is more useful than a polished presentation with unsupported numbers.

The budget should show:

• Work already completed and paid for
• Work that remains to be completed
• Expected labor and material costs
• Permit, utility, site-work, and professional costs
• Expected timing for each important stage
• Funds the borrower will contribute personally
• A reasonable contingency for delays or cost overruns
• Whether the request involves one advance or a possible staged-draw structure

Draws are not automatic. Some lenders may consider staged advances, but that depends on the property, current value, construction stage, title, budget, lender requirements, and signed documents. A lender may want photographs, invoices, contractor updates, site visits, or other evidence before considering a later advance.

Value Support and Loan-to-Value

Loan-to-value, often called LTV, compares the requested loan amount with the realistic value of the property offered as security.

For example, a US$200,000 request against 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% to 40% of realistic value can often be easier to structure. Some stronger files may support a higher amount, sometimes approaching 50%, but that depends on the complete current file and lender requirements.

Construction, development, and land requests usually require more conservative numbers because some of the expected value depends on work that has not yet been completed. A lender may place more weight on current value, completed work, property marketability, remaining costs, and the likelihood of completing the project.

An asking price, projected future sale price, or builder estimate is not automatically realistic market value. Lenders may consider comparable properties, location, access, condition, buyer demand, likely selling time, title, and selling costs.

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

Payment and Principal Repayment Plan

The property is security. It is not the repayment plan.

Private property-backed loans are normally shorter-term. GAP commonly reviews terms from six months to three years. Many private loans use interest-only payments during the agreed term, with the principal balance due at maturity. The final payment structure depends on the lender and signed documents.

A lender needs to understand how payments will be made during the term and how the principal will be repaid at maturity. Supporting documents may include:

• A documented sale plan for another property or asset
• Business, rental, or other income information where relevant
• Information about expected liquidity or a documented transaction
• A realistic refinance plan
• A practical backup exit if the primary plan is delayed

A future sale or refinance can be part of the plan, but neither should be assumed. A sale may take longer than expected, construction may be delayed, and a future lender may require a lower LTV or different documents.

Read why a repayment plan matters for a private loan.

What Can Make a Project File More Difficult?

• A requested amount that is too high for realistic property value
• Value based mainly on an optimistic future sale price
• Missing title, survey, corporate, permit, access, water, or utility information
• Existing liens, annotations, unpaid taxes, or unresolved legal issues
• Remote land, difficult access, limited usable area, or weak resale demand
• An incomplete construction budget or no contingency for cost overruns
• An unclear use of funds
• No practical payment plan or principal repayment plan

These points do not always mean a project cannot be reviewed. They may mean more information is needed, the amount needs to be lower, the legal structure needs to change, or an issue needs to be resolved before legal work and closing costs advance further.

How to Start the Review

You do not need every document perfectly organized before the first conversation. Start with the property location, current condition, requested amount, use of funds, ownership details, existing debt, realistic value, project budget, payment plan, and repayment plan.

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

Loan requests start at US$50,000. GAP reviews qualified requests from borrowers of any nationality, does not require or pull a credit score, and uses first-lien security only. Qualified property-backed loans can often close in about 2 weeks after GAP has a complete file and due diligence is finished, but no closing date is guaranteed.

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

Frequently Asked Questions

What documents do I need for project financing in Costa Rica?

It depends on the project. A lender may need property title information, a Plano Catastro, photographs, ownership documents, corporate records where relevant, existing-debt details, permits, water and utility information, project budget, value support, payment plan, and principal repayment plan.

Do I need all documents before contacting GAP?

No. Start with the basic property and request information. GAP can help identify what is most important first and what additional information a lender may need for the specific project.

Do I need permits before requesting private project financing?

The required documents depend on the project and current stage. A lender may need to review permits, plans, water, access, title, budget, and other legal or technical details before considering the request.

Can a project use staged construction draws?

Possibly. A draw structure is not automatic and depends on the lender, property, current value, construction stage, title, budget, due diligence, and signed loan documents.

Does GAP require or pull a credit score?

No. GAP does not require or pull a credit score. The property, legal position, realistic value, requested amount, project details, payment plan, repayment plan, and lender requirements still need to make practical sense together.

Can raw land be used as project collateral?

Possibly, but raw land is generally more difficult collateral than a completed home and normally supports a lower loan-to-value ratio. Access, water, electricity, drainage, usable area, permits, demand, and realistic resale value all matter.

This article is for general information only. It is not a loan offer, legal advice, financial advice, tax advice, construction advice, or a promise of financing. Project financing, loan availability, loan amounts, rates, terms, costs, draw schedules, 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)