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Private Lenders in Costa Rica

Are you looking for a loan in Costa Rica and considering what to choose – traditional banks or private lenders?

Traditional banks:

  1. Let’s keep things simple: if you are a foreigner in Costa Rica, you are unlikely to qualify for a bank loan. It is almost always against bank policy to do so. A conventional bank mortgage is typically 20 to 30 years long and amortized, which means the borrower pays both the principal and the interest over time. The loan conditions are determined by the lender’s creditworthiness rather than the location or value of the property.
  2. Conventional banks usually have complicated and lengthy paperwork. If you’ve ever taken out a loan from a traditional bank, you know how rigid they can be. They handle loans in a “one-size-fits-all” way, which does not work for all borrowers.
  3. It can take months to receive a response, which is nearly always negative and a waste of time, especially if you rush or need to reply immediately to a new offer.
  4. Fees are considerably more than expected; they are sometimes significantly higher than those charged on a typical loan in North America.

Are you willing to put yourself in this stressful and challenging position? If the answer is “no,” turning to private lenders is the right solution.

Private Lenders:

  1. A private loan is typically for 1 to 5 years, with interest only, and is based mainly on the value of the property you currently own. Private loans generally are used to fund short-term projects such as growing a business, construction, paying off higher-interest debts, or purchasing a property.
  2. Private lenders are willing and able to fund a loan quickly, which is an essential factor. This makes the difference between winning and losing on an opportunity. Many private lending services compete for qualified borrowers, so speed in closing is very important.
  3. Flexibility in terms offered is a significant advantage.
  4. Private lenders in Costa Rica work with non-residents and foreigners, as well as persons and projects that banks won’t touch.


The right choice is obvious! That is why Gap is growing in popularity, as we work with private lenders, offering much better options to the borrowers meeting their financial needs better than traditional banks.

Gap Equity Loans is a better choice as we focus on 3 core factors: Speed, Flexibility, and Approval.

SPEED: We can usually help to close a private loan in 7 to 10 business days through our private lenders. Considering that traditional banks often take months to respond, it’s easy to see why our clients choose us. We are chosen by real estate developers, homeowners, real estate investors, and company owners.

FLEXIBILITY: We work with our Private Lenders to set loan repayment and collateral (equity) release arrangements that benefit both parties. We structure loans based on a proportion of the property’s quick-sale value, or LTV (loan to value), as collateral for the loan. The maximum loan-to-value ratio is usually set at 50%.

APPROVAL: Traditional banks will sometimes decline loan requests because the borrower is self-employed, has limited work experience, has no income history, has bad credit, and so on. We work with borrowers to get quick approvals on their loan requests. Our private lenders usually can look past those issues as long as the borrower can repay the loan and have sufficient capital invested in the collateral property.

We operate in locations where banks are hesitant to lend, such as the coast and tourist destinations.

Our lenders are trustworthy and competent, and they provide competitive rates and conditions.

We choose the loans and lenders carefully. Only loans that we would invest in ourselves are offered to our lenders.


How we work:

  1. A private loan is based on the requirement of collateral, which provides the lender with a guarantee. This must be a property in your name with a building and no liens attached.
  2. Private lenders will lend you up to 50% of your home’s actual value. We have a straightforward approval procedure that is nearly completely focused on the property’s worth and attractiveness.
  3. We will want official plans detailing the property’s features and confirmation that it is suitable for use as collateral.
  4. To market your loan to possible investors, we will ask for basic details on what the cash will be used for.
  5. The investor will meet with you briefly and inspect your property and documentation if we discover a good match for you.
  6. We charge a flat fee of 6% of the loan value for our services at the loan closing. This is often less than what banks in Costa Rica charge for a loan origination fee. This cost, together with the legal fee, is paid upfront by the investor and then rolled into the loan to be repaid over time.
  7. An attorney handles the closing, and a mortgage is registered with the Registry the same way a bank would.
  8. The property will be officially released to you once you have completed paying the principal and interest to the investor at the end of the term. We can assist you in negotiating an extension or renegotiation with your lender at the end of the term or transfer the loan to a new investor if necessary.


Gap Equity Loans Are A Better Choice Than Traditional Bank Loans.



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