Financing

Yes, we have 2 financing options.

The first one (and probably the best option) is with Scotiabank here in DR. As a broker, I am in direct contact with the financing department. They work fast and are experienced in providing mortgages/financing.

Scotiabank is offering loans in us dollars with absolutely the best conditions. To buy a property here in the DR or build a property.

The loans are perfect for US and Canadian citizens. European citizens is not possible.

Of course, you need to provide proof of income documentation, give the authorization to do a credit check, and some more documents and appraisals from the property that you want to buy.

How long does this take:

• in general your pre aproval goes fast, 1 till 2 weeks
• final aproval takes 4 weeks more. So in fact in 6 weeks or less it is done.

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***This financing here below is from a private financer in the USA.

The following loan terms are a general guide and may be adjustable based on the strength of the borrower or the purchase:

1. Loan Amount: Up to $400K US dollars.
2. Loan to Value: Up to 70%.
3. Loan Type: Simple interest paid monthly with a balloon payment (principle) at the end of the loan term. Loan is secured against the property in a 1^st position and includes a personal guarantee for repayment of the loan. No land or construction loans.
4. Interest Rate: 10% (the interest rate is fixed over the life of the loan).
5. Prepayment Penalty: Minimum 18 months interest earned.
6. Loan Term: Up to 4 years.

Underwriting Requirements:

50% LTV or less:

1. Documentation that buyer is bringing in the balance of the down payment on the property.
2. Good title with the trust deed being recorded on the property in a first position with no seconds permitted without lender’s approval.

Over 50% LTV:

See “Underwriting Requirements” above and in addition the following:

1. Credit report.
2. Proof of income (possible tax returns).
3. Possible an appraisal.

If this property is a refinance:

1. Provide rental income over a one year period if property is a long or short term rental. No cash out.
2. Possible an appraisal.

Fees:

1. Loan Origination Fee: 1% of the loan amount (this will be paid to the procuring broker or can be waived by the procuring broker if preferred).
2. Loan Documents / Title Review / Escrow: 1% of the loan amount or $1,200 US dollars X 18% tax whichever is more paid to Guzman Ariza (our attorney).
3. Government Tax: 2% of the loan amount. Please note this is in addition to the 3% Transfer Tax relating to the purchase of the property.
4. Credit Report: If you don’t have a credit report within 6 months.
5. Processing Fee: $500 paid to Paul Feilberg. This fee covers our wire fees, notary fees, translation costs, Power of Attorney and other miscellaneous fees associated with the loan.
6. All fees paid up front except loan origination fee and government tax will be paid at closing.

Funding Requirements: Upon approval of the underwriting requirements, the lender will fund the loan through escrow subject to:

1. Borrower funds in escrow including closing costs.
2. Title approved by lender.
3. Property insurance in the amount of the purchase price of the property or more naming the lender as additional insured.
4. Property taxes paid current as part of the closing.
5. Preliminary closing statement reviewed and approved by lender.
6. Once items A through E are complete lender can fund within 24 hours.

Loan Servicing:

1. Monthly Payments: Will be in US dollars or the equivalent rate of exchange for DR pesos as dictated by lender.
2. Documentation that property taxes are paid on time.
3. Provide property insurance renewals to lender.