For buyers requiring mortgage financing, there are two options available:
REFINANCE IN YOUR HOME COUNTRY
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)
DR MORTGAGE FINANCING
Place a new, US dollar first mortgage on the DR property being purchased.
- Interest rates are between 3.75-5.75%
- Amortizations up to 25 years
- 35-40% down payment required
- The approval process is similar to that of North America, with lenders requiring similar documentation
- You can be self-employed
DR Mortgage Financing. Where Do You Start?
PLEASE NOTE: We are not a mortgage brokerage, but do assist our buying clients with obtaining financing.
Below are some the steps you can follow and find out if you qualify:
Will You Qualify? Start here.
We only require two items for determine if you qualify for DR financing: your credit report and your income.
- To obtain your credit report click below:
- United States: TransUnion US
- Your credit (FICO) score to qualify must be greater than 640
- Canada: Equifax Canada
- Your credit (Beacon) score to qualify must be greater than 680
- UK: Equifax UK
- Your credit score to qualify must be greater than 640
- If your credit score is above minimums, proceed to obtaining:
- Income Information:
- United States and UK: Two-years of tax returns
- Canadians: Two-years of Notice of Assessments
Get the Ball Rolling!
- Send your credit report and tax information along with a completed mortgage application. Click the link below to download:
Contact Bernie Tietz in our office to discuss further steps
Bernie will let you know where to send the application and the next steps to getting your pre-approval and eventual funding.
Some General Guidelines…
- Mortgage financing here in the Dominican Republic is limited and can be time consuming.
- Financing is only available to citizens from the United States, Canada and the United Kingdom
- Projects or developments must also be approved by the lender
- Mortgages are done in United States dollars (US)
- 20-25 year amortizations available
- Interest rates from 3.75 – 5.75 %
- Downpayment of 35% on houses under $1,500,000 US
- Downpayment of 40% on houses between $1,500,000 to $2,500,000 US
- Brokerage fee: 1% of mortgage amount. Minimum fee of $700 US
- Legal fees to register mortgage
- Appraisal: $300-$500 US
What is not possible:
- No subprime financing
- No mortgages in non-approved projects
- Mortgages are not available on purchases of over $2,500,000
- Mortgages to corporations
- Financing of raw land or farms
Full Documentation Requirements:
- Mortgage application
- Client consent to release tax data (bank)
- Form W9_E (US citizens)
- Authorization to obtain credit report (from bank)
- Passports and drivers’ licenses
- Social Security or Social Insurance Number
- Letter of Employment from Employer (cannot be greater than 30-days old – obtain pre-approval first)
- Last six months of paystubs for salaried applicants
- W-2 for US applicants (last two years)
- T-4 slips for Canadian applicants (last two years)
- Form P60 tax summary for UK residents
- Letter of reference from your two primary banks (home country)
- Last six months of bank statements
- Proof of ownership of assets listed on your mortgage applications (eg. Title, tax assessment, mortgage assessment, insurance, registration of vehicles, investment statements)
- Last three months credit card statements
- Proof of downpayment (where it is coming from) for money laundering purposes
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Villas offer space, private pools, gated communities and specialty services for expats. Morning coffee overlooking your sparkling pool, tropical nights on your back terrace…heaven.
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