Construction Loans in Dominican Republic

asmith5795

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May 27, 2007
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Has anyone come across any financing available for construction loans for property in the DR? we are US citizens and are just starting to look at our options.
 

DavidZ

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Aug 29, 2005
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www.vipcigartours.com
Most DR banks have or are creating programs for construction loans for non-citizens of the DR. For example, if you own the land, you can do an equity line for up to 80% of the land value and use it for construction. Also, you may be able to get 50-70% of either the construction cost or the final improved value of the property, depending which bank you use. I have talked with Banco BHD, BancLeon, Banco SantoCruz and Banco Popular... The loans in US $$ are reasonable (8-10%). They all have a standard requirements sheet, but I dont know anyone who has completed the process yet.
 

asmith5795

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May 27, 2007
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That sounds encouraging. The property that we have in mind is a condo. Have you heard anything about construction loans for that type of property yet?
 
C

Chip00

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Has anyone come across any financing available for construction loans for property in the DR? we are US citizens and are just starting to look at our options.

Send JRR, a member of DR1, a private message - if you are not sure just ask.

He can offer you rates that can't be touched by any Dominican Banks.
 

planner

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Sep 23, 2002
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Great minds think alike, I've already sent JRR an email telling him of this thread.....
 

JRR

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Dec 9, 2004
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Construction loans in the DR

David is quite right, you can get a construction loan, and possibly from the banks he mentions. However, construction loans here are only done in Pesos, not USA dollars. The time period for the construction can be for as long as 10 years, generally 7, depending on your age, and it will be at 14.5-16% in pesos. You also must already have title to the property or they will not finance it, that includes Deslinde.

If you are buying a condo in a complex which I am assuming, you will not be able to finance it until it is finished. There is nothing for the bank to put a lien against should you default and therefore it makes it difficult to finance. You will be able to get financing once the construction is finished and title is available.

I would be glad to answer any of your questions or give you suggestions if PM me or call me.

www.suncoastmarketingandconsutling.com

JRR :cheeky:
 

asmith5795

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May 27, 2007
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We found an individual condo in a development that we are interested in and it won't be completed until July 2008. We have been searching for financing options on the internet and one of us is a loan originator for a bank in the US and her bank will not do financing out of the country. They did give her some names to try, but I'm thinking that we will run into the same problems because it is a condo.

I guess I was just hoping that there has been a new development in financing that we just were missing.

Thanks for all the information. We may have to look for an existing property. We just wanted to have an idea about financing and be pre-approved for a certain amount before we make another trip to decide for sure.