What Is Private Lending in Costa Rica?

Private lending in Costa Rica is property-backed financing reviewed by a private lender. It may be considered when a qualified borrower has suitable Costa Rica real estate, a defined financing need, and a realistic plan to make payments and repay the principal balance.

GAP Equity Loans helps qualified borrowers submit Costa Rica property-backed loan requests for private-lender review. GAP Equity Loans is not a bank and is not the direct lender.

• Loan requests start at US$50,000 and up
• Terms generally range from six months to three years
• GAP Equity Loans does not ask for a credit score
• First-lien property security is required
• Qualified borrowers of any nationality may submit a request

Submitting information does not create an approval, funding commitment, rate, loan amount, term, or closing date. Every request is reviewed individually.

How Private Property-Backed Lending Works

A private lender reviews a request that is secured by qualifying Costa Rica real estate. The lender needs to understand the property, ownership, title position, existing obligations, realistic value support, requested amount, use of funds, payment plan, and principal-repayment plan.

The property is important, but it is not the repayment plan. The lender also needs to understand:

• How agreed payments will be made during the loan term
• How the principal balance is expected to be repaid at maturity

A proposed sale, refinance, investment liquidity, business income, rental income, or sale of another asset may be part of a repayment plan when it is realistic and supported by the complete file. A renewal is not automatic, and replacement financing is not guaranteed.

When Might Private Lending Be Considered?

Property-backed private lending may be considered for a documented purpose with a realistic repayment path. Depending on the complete request, this could include a property purchase, renovation, property improvement, refinance, payoff of an existing obligation through the proper closing structure, construction stage, or a documented business need.

The purpose of the request must make sense alongside the repayment plan. Available property equity alone does not make a request workable.

What Does a Private Lender Review?

Private-lender review is based on the complete request, not one single factor. Items commonly considered include:

• Property location, condition, access, and marketability
• Ownership and title position
• Existing mortgages, liens, annotations, taxes, or other obligations
• Available value support and the requested amount
• The documented use of funds
• The plan for payments during the term
• The plan to repay principal at maturity
• Documents needed for due diligence and closing

Properties with unresolved title, access, utility, drainage, permit, ownership, or existing-obligation questions may require further review or may not be suitable for a request.

First-Lien Property Security

GAP Equity Loans uses first-lien property security only. The property’s ownership, title position, and existing obligations must be understood before a lender can determine whether a request may move forward.

An existing mortgage, lien, annotation, unpaid tax balance, or other registered issue does not automatically end the discussion. However, the current balance, payoff requirements, and closing structure must allow the private lender to obtain the required first-lien position.

If a corporation owns the property, the applicable corporate records and signing authority must also be reviewed.

No Credit Score Is Required

GAP Equity Loans does not ask for a credit score for a normal property-backed loan request. That does not mean financing is automatic.

The property, title position, requested amount, repayment plan, lender review, due diligence, and final documents must still support the individual request.

Terms, Rates, and Closing Timeline

Property-backed loan requests start at US$50,000 and up. Terms generally range from six months to three years.

Lender rates are generally similar to Costa Rica bank rates for foreigners. Final rates, payment structure, costs, terms, and availability depend on the individual request, private-lender review, due diligence, and signed documents.

Once GAP has a complete file and due diligence is complete, qualified property-backed loans can close in about 10 days. Timing depends on the property, title, existing obligations, lender review, legal work, banking, documents, and closing requirements. No closing date is guaranteed.

What Helps Start a Request?

Clear and accurate information helps determine whether a property-backed request may be suitable for private-lender review. Useful starting information includes:

• A location pin and current property photographs
• Available ownership and property documents
• The requested amount and exact use of funds
• Available value support, appraisal information, or comparable sales
• Details of existing mortgages, liens, annotations, taxes, or legal concerns
• Corporate records and signing authority, when applicable
• A clear plan for payments during the term
• A realistic plan to repay the principal balance at maturity

Submit a property-backed loan request.

Frequently Asked Questions

What is private lending in Costa Rica?

Private lending is property-backed financing reviewed by a private lender. The lender considers the property, title position, requested amount, value support, repayment plan, and complete file.

Is GAP Equity Loans the lender?

No. GAP Equity Loans is not a bank and is not the direct lender. GAP Equity Loans helps qualified borrowers submit property-backed requests for private-lender review.

What is the minimum loan request?

Requests start at US$50,000 and up.

Does GAP Equity Loans ask for a credit score?

No. GAP Equity Loans does not ask for a credit score for a normal property-backed loan request.

What security is required?

First-lien property security is required. The property’s title position and existing obligations must support the required closing structure.

How long are the terms?

Terms generally range from six months to three years. Final terms depend on private-lender review and signed documents.

How quickly can a qualified loan close?

Once GAP has a complete file and due diligence is complete, qualified property-backed loans can close in about 10 days. Timing depends on the property, title, existing obligations, lender review, legal work, banking, documents, and closing requirements. No closing date is guaranteed.

This article is for general information only. It is not a loan offer, legal, tax, financial, or real-estate advice, and it does not promise financing. Loan availability, rates, amounts, terms, costs, and timing depend on the individual property, documents, private-lender review, due diligence, and signed documents.

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