Financing-loans-mortgages property in the Dominican Republic

 

 

Conditions from this bank:

  • We can lend to citizens of the USA, Canada, and Great Britain, including Northern Ireland.
  • A borrower  can be a duel citizen of these counties.
  • The borrower must have a credit score of 680 or the equivalent  in the UK
  • You must have assets equal to the loan amount.  For example, if we were to loan your client 1mm dollars, we would want to see 1mm in assets. This can be broken down into 20% cash  ( bonds mutual funds etc) and the balance can be in the form of equity in other non primary homes, like 2nd homes and investment properties. We can also use equity in a business.
    Our loan limit is 4 million per borrower and up to 3 properties.   For example, in CASA DE CAMPO, we closed a deal where upon a purchaser paid 10mm for a property last summer and we closed a deal for him giving him 4mm in his hand, cash out,  or actually he was reimbursed partially on his purchase.
  • Typically, we up to 70% of the purchase price or appraised value.
  • We do have a ‘stated income’ program in which we don’t look closely at income.  In this case we go up to 50% of value.
  • The programs we have are on a 30 year amortization basis. ( 5 year Libor ARM)  When compared to Banco Popular, they offer 10 and 20 year programs; this means cheaper monthly payments with our program.
  • Our programs for non Cap Cana  loans are in the  9-10% range on end loans for purchases.
  • We do have a pre pay penalty consisting of 5 years, on a 5,4,3,2,1 basis.  So, for example, if the loan is paid off in the 4th year, there is a 2% penalty. (penalties are a tax deductible item for US tax payers)  
  • We have no requirements for customers to obtain life insurance policies and go through medical  examinations like local DR banks.   

 

Typical payments for 1 million usd home over 30 years is 8.400 usd per month.

 

Article mai 2008:

Global financial markets have changed dramatically in the past year. It’s now more important than ever to understand these changes and how they affect foreign buyers of Dominican Republic property, as well as your ability to assist them with their real estate acquisitions.

In the past, U.S. Home Equity Line of Credit (HELOC) products have been readily available to American buyers, allowing them to effortlessly tap into the equity in their primary residence in order to buy Dominican Republic property. Often times, the process has been as easy as writing a check against their equity.

However, in recent weeks, several banks have announced a "freeze" on HELOC accounts, restricting account owners from borrowing against the equity in their homes until their account restrictions have been lifted or "unfrozen."

Many Dominican Republic real estate professionals and property buyers may be unaware of the freeze on these HELOC accounts and may learn about this change in policy only as their scheduled transaction closing approaches, when the entire transaction may be in jeopardy.

The good news is that our products are accessible to U.S. buyers acquiring property in Dominican Republic, regardless of the status of the U.S. HELOC market. We diverse offering of loan products are specifically designed to avoid last-minute surprises that have become more prevalent during these changing financial times.

I welcome the opportunity to speak with you regarding how we loan products can streamline professional and trouble-free Dominican Republic real estate loan transactions on behalf of you and your clientele.

 

 

If you have questions about loans, financing and mortgages in the Dominican Republic, or you want advice, please mail me at info@dr2007.com and i will bring you in contact with the company.