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Private Loan Review: What GAP Checks for Lenders

November 4, 2026
GLENN TELLIER
GAP Investments
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Every loan GAP arranges goes through a review of the property, its value, the amount and the borrower’s repayment plan. Understanding that private loan review helps you, as a lender, know what has been checked, what is still your decision and which questions to ask before you fund. This guide explains what GAP looks at, and what a review does not do.

1. The property and its title

GAP arranges standard loans only against titled property registered in the National Registry, not against maritime-zone concessions. The review looks at who owns the property and what is registered against it. Any existing mortgage or lien must be paid off before or at closing, because the lender on a GAP loan always holds first position. How a first-lien mortgage protects a private lender explains why that matters.

2. The value used for the loan

A borrower’s estimate of their property is not the value used. GAP determines the valuation used to calculate loan-to-value, with the lender’s input and acceptance, and supporting appraisals and comparable sales may be reviewed. As a lender, you can question the value before you accept it.

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3. Loan-to-value

Around 30% loan-to-value or less is preferred. Forty percent is generally more favorable than fifty, and 50% is the maximum for standard loans, not the target. Land without a house is reviewed on stricter terms, usually at a lower loan-to-value. Loan-to-value in Costa Rica, with simple examples shows how the numbers work.

4. The amount, term and purpose

Standard loans start at US$50,000, with terms from six months to three years. Above US$1 million, additional paperwork and due diligence are required. The review also looks at what the money is for, because the purpose shapes the risk and the repayment plan.

5. How the loan will be repaid

Payments are monthly and interest-only, so the full principal is due at maturity. The borrower needs a believable way to repay it, such as selling a property, refinancing or other documented funds. A vague exit is a reason for caution. Plan your exit before you borrow covers what a strong exit looks like.

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6. Documents

GAP does not require a credit score, and the process involves less paperwork. That does not mean no documents or no due diligence: the review depends on the documents needed for the property and the transaction, and missing documents or extra verification can delay closing.

What a private loan review does not do

It does not guarantee repayment. Borrowers can pay late or default, and no return is guaranteed.
It does not replace your own checks. Have your own attorney review the loan documents before you fund.
It does not make a loan safe because of its rate. Lender rates range from 9% to 16% a year, and the interest rate alone does not make a loan safe.
It does not decide for you. You choose which loan to fund. How private lenders choose which loan to fund covers what to weigh.