Who Can Borrow Against Property in Costa Rica?

Private loans in Costa Rica are built around the property, not a credit file. That changes who qualifies. If you want to borrow against property in Costa Rica, the questions that matter are what you own, how it is registered, how much you need and how you will repay. This guide explains who can borrow through GAP Equity Loans, and who is not a good fit.

Borrowers of any nationality

GAP reviews borrowers from any country, whether or not they live in Costa Rica. Costa Rican residency is not required, and no credit score is required. Article 19 of Costa Rica’s Constitution gives foreigners the same individual and social rights as Costa Ricans, with the exceptions and limitations set by the Constitution and the laws.

That does not mean no paperwork. You still provide identification, property documents and information about the loan’s purpose and repayment. See what to prepare before you apply.

Owners of titled property

The security for a GAP loan is titled property registered in Costa Rica’s National Registry. That can be:

• a house or condo, occupied or rented out;
• a commercial building;
• a lot without a house, reviewed on stricter terms, usually at a lower loan-to-value.

Beachfront land inside the maritime-terrestrial zone is different. Under Law 6043 that zone belongs to the State and is used under concessions, and GAP lends only against titled property, not concessions. Land loans in Costa Rica explains the stricter terms for lots.

Owners with enough equity

The loan amount is tied to the property’s value. Around 30% loan-to-value or less is preferred and 50% is the maximum, with GAP determining the value used, with the lender’s input and acceptance. Loans start at US$50,000, with additional paperwork and due diligence above US$1 million.

If the property already has a mortgage, that is not automatically a problem. It must be paid off at or before closing, often from the new loan’s proceeds, so that the new lender holds first position. GAP does not arrange second-position loans.

Borrowers with a clear purpose and exit

People borrow for many reasons: buying another property, renovating before a sale, funding a business, bridging the gap until another sale closes. Whatever the purpose, a lender wants to see how the loan will be repaid at the end of the term, usually through a sale, a refinance or other funds. Terms run from six months to three years, with monthly interest-only payments and the principal due at maturity.

Who is usually not a good fit

• Someone who needs more than half the property’s value.
• Someone looking for a 20- or 30-year home loan.
• A property held only as a beach concession, or with unresolved title problems.
• A request for a second-position loan behind an existing mortgage that will stay in place.
• A borrower with no realistic way to repay at maturity.

What borrowing costs, and when you pay

When you borrow against property in Costa Rica through GAP, you pay the loan fees, which are deducted from the proceeds at closing; there is nothing to pay before closing. Early repayment has a penalty that depends on the lender. Banks set their own requirements, which can make bank loans harder for newcomers, and banks can take many months, if not longer, to close. GAP closes loans within 10 business days once the required documents are complete.

Frequently Asked Questions

Can a foreigner borrow against property in Costa Rica?

Yes. GAP reviews borrowers of any nationality, and residency is not required.

Do I need a credit score?

No. The review focuses on the property, the amount, the purpose and your plan to repay.

Can I borrow if my property already has a mortgage?

Possibly. The existing mortgage must be paid off at or before closing so the new lender is in first position.

Can I borrow against land?

Yes, if it is titled, but land is reviewed on stricter terms, usually at a lower loan-to-value.

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

Start a loan request with GAP Equity Loans → · WhatsApp us at +506 4001 6413 to get started, call or email info@gap.cr