Bank Mortgage

Davek

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Mar 24, 2005
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I am a US citizen and I purchased a condo in the DR. I have a down payment on the condo but need some help with financing the rest. I checked with mortgage companies in the US and they do not finance offshore properties. Does anyone have any information they would like to share on the banks in the DR about mortgages? Refinancing, etc.. This would be greatly appreciated.
 

BushBaby

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Jan 1, 2002
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Firstly I would suggest you keep your head down for a lot of flack will be coming your way. Placing a deposit on a property without the financial support to complete is a little irresponsible I would suggest!!

Go into the archives & read up on this subject (Keywords 'Mortgages', 'Financing House purchase' or similar). Then you can try looking at the webpages of Banco Nova Scotia, Banco Progreso, or Banco Popular - you should be able to gleen the information you need from those.

My recommendation would be to re-finance your house in the US & then pay CASH for what you have put a deposit on down here!! If that can not be done, it might be sensible to walk away from the deal now or try to pass the 'DEAL' you struck on to someone with finances already in place! ~ Grahame.
 

ecarignan

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Jan 9, 2003
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Good advice Grahame and I hope the lawyer did its job to protect the seller and made you sign a proper Promise of Sale stating that if you walk away from the commitment you have made, the deposit goes to the ssller, not back to you.

Too many people put a deposit thinking they can walk away from the commitment. So, if you have signed a promise of sale and decide to walk away, the deposit is lost.

On the upside, very easy to refinance your home in the US and buy cash in the DR. If you have not built enough equity on your domestic home, then you're in trouble!

Good luck.
 

Davek

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Mar 24, 2005
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re mortagage

Thanks for all your advise, I do have finiacial support for the rest of the money from Banco M?ltiple Le?n but the interest rates are 9.8% on a 7 year balloon. I was looking for something more reasonable. If that can not be done then I will refinance my us home.
 

sweetdbt

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Sep 17, 2004
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I don't know what the balloon arrangement is, but I doubt if you will get a better rate than 9.8%. It was less than 2 years ago that DR mortgages were 30% and up!
 

Gringo

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Jan 1, 2002
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Grab the Money before they change thier minds..........

If you can get that kind of interest rate here in the Dr. then take it fast because something stinks in Denmark................

And please PM me and let me know the Details because the finance houses here are loansharking @ 4% a month and I have clients who will do your deal in three seconds flat at the interest rate you are touting.
Thanks in advance...........

(My old Pappy used to say that something that sounds to good to be true often is)

Larry (A.K.A.) Gringo
 

DavidZ

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Aug 29, 2005
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I have spoken to the manager at Banc Leon and they do in fact loan to US citizens with 20% down. The paperwork and requirements are similar to a US "Limited Doc" loan, and the rates are great... for here. If you qualify for their program and don't want to refi in the US or come up with the funds elsewhere, I'd say DO IT. BTW, they offer mortgages for up to 20 years...

You may also want to try BPD (Banco Popular Dominica) in Miami. I spoke to a manager there several months back and they were almost ready to start lending to US citizens for purchases in the DR. Im not sure if theyre up and running yet, but worth a try.
 

Davek

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Mar 24, 2005
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David Z, Thank you for the information, I will try your suggestions, if you have any other information to share, it would be much appreciated
 

JRR

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Dec 9, 2004
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Financing in the DR!

There are now mortgages available in the DR for purchase or refinancing using the property here as collateral.

mortgages in US diollars
7.99-8.25% interest
US, Canadians, Europeans,...do not need US assets
All motgages are full documenttion
up to 30 years amortization
40% dti

Jay

Dominican Republic Real Estate - Finance
 
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bhale

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Mar 1, 2004
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DavidZ, can you provide contact information for Banc Leon? Are they in the DR?

JRR - do you have any more information or contact inof? The link in your post is outdated.
 

J D Sauser

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Nov 20, 2004
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Keep in mind that any mortgage offered with a certain percentage deposit is based on the BANK ASSESSED value, which may be less than what the seller wants you to pay. In this case your down payment percentage will raise until the total is met. (I hope you didn't buy an apartment in, lets say, "La Union" for USD 120K).

Frankly, and I hate to feel I have to tell you this, but from your initial post and your subsequent amazement at the lowest possible going rates, I think that you have NO idea whatsoever what country you are getting into... and maybe you will loose less in the long run by either finding somebody to assume your contract or even just walk away, because I have a funny feeling that you are in for a lot of surprises to come.

... J-D
 

dreamsource

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Jul 29, 2007
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As long as you're a U.S. Citizen, the re-fi of your US home makes the most sense. Rates are heading down, and at least there's some tax advantage to be realized, i.e. points, closing costs, interest being deductible on a primary residence. You should also be able to get a significantly better interest rate, assuming good credit. Good Luck!