Using Property-Backed Financing to Buy a Home in Costa Rica

Buying a home in Costa Rica usually means paying in cash — local banks rarely offer conventional mortgages to non-residents, and even residents often face long approval timelines. Property-backed financing is a different path: instead of borrowing against the home you’re buying, you borrow against Costa Rica real estate you already own, and use those funds toward the purchase.

How Property-Backed Financing Works for a Purchase

If you already own qualifying Costa Rica real estate, GAP can arrange financing secured by that property, with proceeds used toward the purchase of another home. Requests start at US$50,000 and up — there’s no fixed ceiling, though anything over US$1 million involves additional paperwork and due diligence. GAP does not require or pull a credit score for a normal request; documentation and property review still apply.

Lower leverage is generally easier to place and can support better pricing — around 30% loan-to-value or less is preferred, with 50% as the standard maximum, subject to approval. Terms typically run six months to three years, with interest-only payments during the term.

What This Isn’t

This isn’t a substitute for a traditional mortgage, and buying a home is actually the least-preferred use case for this kind of financing — it works best when you’re leveraging existing equity toward home improvements or another opportunistic purchase, not as your primary path to homeownership. GAP will still consider a purchase-focused request when the numbers work, but it’s worth being clear-eyed that this is short-term, interest-only financing against property you already own, not a 30-year home loan.

First-Lien Position and What It Means for You

Every standard GAP loan uses first-lien property security only — GAP does not arrange second-position standard loans. If there’s already a lien on the property you’re borrowing against, you have two options: pay it off before the new loan closes, or roll that amount into the new loan itself. Either way, GAP handles settling the existing lien for you as part of closing — it’s not something you have to arrange separately on your own. Borrowers pay the loan fees; lenders receive the full agreed rate without any GAP fee deducted from it.

There usually is a prepayment penalty, though every lender is different, so the specific terms are discussed with you directly before closing — never assume there isn’t one.

Why GAP Keeps Using the Same Attorneys

Every property-backed loan closes through the same small group of attorneys GAP has worked with for years. That’s deliberate: an attorney who has already handled dozens of GAP closings has a track record we can point to, not just a resume, and we know exactly how carefully they check title, liens, and closing documents. If you’re new to this kind of financing and none of the process is familiar yet, that’s exactly what GAP’s role is for — you’re not expected to vet an attorney or verify a title yourself. That review is built into working with GAP.

Finding the Right Property

If you’re using this financing to help fund a purchase, GAP Real Estate can help you find the actual property, while GAP Equity Loans handles the financing secured by what you already own. The two work together, but they’re separate conversations — one about the home you want, one about how you’re funding it.

Frequently Asked Questions

Can I use this to buy my very first property in Costa Rica?
Only if you already own qualifying Costa Rica real estate to secure the loan against — this product borrows against property you have, not the one you’re buying.

Do I need Costa Rica residency to qualify?
No. Nationality and current country of residence don’t restrict eligibility on their own; standard documentation and property review still apply.

How fast can this close?
Once documentation is complete and due diligence is satisfied, closing guidance is within 10 business days — but that’s guidance, not a guarantee, and depends on your specific file.

Do I have to find my own attorney?
No — GAP can put you in touch with the same closing attorneys we’ve relied on for years. You’re also welcome to use your own, as long as their regular practice covers Costa Rica real estate and title work.

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

Start a property-backed financing request with GAP Equity Loans → · Looking for the property itself? Browse listings with GAP Real Estate → · WhatsApp us at +506 4001 6413 to get started, call or email info@gap.cr