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.
***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:
- Loan Amount: Up to $400K US dollars.
- Loan to Value: Up to 70%.
- 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 1st position and includes a personal guarantee for repayment of the loan. No land or construction loans.
- Interest Rate: 10% (the interest rate is fixed over the life of the loan).
- Prepayment Penalty: Minimum 18 months interest earned.
- Loan Term: Up to 4 years.
50% LTV or less:
- Documentation that buyer is bringing in the balance of the down payment on the property.
- 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:
- Credit report.
- Proof of income (possible tax returns).
- Possible an appraisal.
If this property is a refinance:
- Provide rental income over a one year period if property is a long or short term rental. No cash out.
- Possible an appraisal.
- 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).
- 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).
- 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.
- Credit Report: If you don’t have a credit report within 6 months.
- 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.
- 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:
- Borrower funds in escrow including closing costs.
- Title approved by lender.
- Property insurance in the amount of the purchase price of the property or more naming the lender as additional insured.
- Property taxes paid current as part of the closing.
- Preliminary closing statement reviewed and approved by lender.
- Once items A through E are complete lender can fund within 24 hours.
- Monthly Payments: Will be in US dollars or the equivalent rate of exchange for DR pesos as dictated by lender.
- Documentation that property taxes are paid on time.
- Provide property insurance renewals to lender.