Dominican Republic Financing Options
1.Refinance or place a home equity line of credit on an existing property in your home country to pay for the DR purchase:
Step 1: The Application
ask you about your personal information, and details about the property, and obtain your credit bureau report.
Step 2: Approval
Based on the information given, we will submit the application to the appropriate lender and ask for a `conditional mortgage approval`.
Step 3: Supporting Documentation
The lender will verify that the information given is accurate. You may be required to obtain a letter of employment, income tax forms, etc. In addition, an appraisal of the property to be purchased will be done. For US or Caribbean lending, other documentation, like your passport, will also be required. Below is a partial list of required documentation:
Step 4: Funding
Once all the conditions on the mortgage approval have been satisfied, the lender will instruct your property lawyer to pay the seller and release the keys – to you! Please allow 3 months – Dominican Republic mortgage lenders/banks can be very slow..
Important:
For new properties, it is imperative that title and Deslinde be complete in order to obtain mortgage financing. We have a few developments and projects where mortgage financing is possible before the title process is complete. Please ask us for more information. Foreign property lending is a very exacting process. We are happy to explain the ins and outs and get you started on owning your own investment or holiday real estate.
1.Refinance or place a home equity line of credit on an existing property in your home country to pay for the DR purchase:
- Often a better option as rates are better
- More mortgage products are available to you
- It takes less time
- In many countries the interest paid is now tax deductible (if DR property is at least a part time rental)
- Interest rates are between 4.75-9%
- Amortizations up to 25 years
- 30% downpayment required
- The approval process is similar to that of North America, with lenders requiring similar documentation
- You can be self-employed
- Some project developers offer interim financing until bank financing is finalized (new builds).
- Others offer actual long term mortgage financing. Rates and amortizations vary. We can tell you which projects offer mortgage financing.
- Some owners offer financing to the buyers of their property
- Set agreed upon terms between buyer and seller
- Lawyers will be involved in order to ensure legal action can be taken if buyer defaults on payments
- Terms will be set on an individual basis
Step 1: The Application
ask you about your personal information, and details about the property, and obtain your credit bureau report.
Step 2: Approval
Based on the information given, we will submit the application to the appropriate lender and ask for a `conditional mortgage approval`.
Step 3: Supporting Documentation
The lender will verify that the information given is accurate. You may be required to obtain a letter of employment, income tax forms, etc. In addition, an appraisal of the property to be purchased will be done. For US or Caribbean lending, other documentation, like your passport, will also be required. Below is a partial list of required documentation:
- mortgage application properly filled out and signed
- colour photocopy or scan of passport(s)
- latest income tax documents (Notice of Assessments-Canada, Tax Documents – US & Britain)
- employment letters and pay stubs
- bank statements from last three months
- copy of TransUnion credit bureau (we will show you how to obtain this)
- purchase agreement for property to be purchased
- source of downpayment (investments, savings, etc.)
- appraisal (ordered by lender)
Step 4: Funding
Once all the conditions on the mortgage approval have been satisfied, the lender will instruct your property lawyer to pay the seller and release the keys – to you! Please allow 3 months – Dominican Republic mortgage lenders/banks can be very slow..
Important:
For new properties, it is imperative that title and Deslinde be complete in order to obtain mortgage financing. We have a few developments and projects where mortgage financing is possible before the title process is complete. Please ask us for more information. Foreign property lending is a very exacting process. We are happy to explain the ins and outs and get you started on owning your own investment or holiday real estate.
