Mortgages in the DR Are EASY (no, seriously)

In this SPECIAL edition of the Grubernation Weekly Newsletter:

• The EASY Way to Get a Mortgage in DR

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Mortgages in the DR Are EASY (no, seriously)

Okay, I know what you’re thinking — “Jamie, nothing about Dominican bureaucracy is easy.”
Normally, I’d agree with you.

But getting our mortgage here? It was one of the smoothest financial experiences I’ve ever had.

Not because the process is simple — it’s not.
But because I figured out what NOT to do.

❌ The Hard Way (What Everyone Tries First)

We started like everyone else — walked into a big Dominican bank with a smile and a fat down payment.

We were putting 40–45% down on a home in a neighborhood where the next similar house was $200K more. I figured, “We’re strong borrowers, this’ll be easy.”

Nope.

For months it was just endless back-and-forth.
They told me they’d only count 10–30% of my income for debt-to-income. Then asked for more documents. Then more explanations. Then more explanations for the same thing.

By round four, I was done.
So I told them, “Keep your mortgage.”
And honestly — that moment was glorious.

✅ The Easy Way (Don’t Go Straight to the Bank)

Our realtor said, “Jamie, talk to a mortgage broker.”
I didn’t even know they existed here. Turns out, they do — and they’re game-changers.

I met Paola on August 29th.
We closed October 20th.
That’s 50 days, start to finish.

Here’s why it worked:

• She’d worked inside seven major Dominican banks, so she knew exactly how they think.

• She knew which banks like U.S. income and credit, and which don’t.

• She organized our docs in the right order so the bank saw the strongest stuff first.

• And she negotiated our rate down by a full percentage point — with one call.

Final terms:

• 🏦 9.5% USD interest (down from 10.5%)

• 💰 45% down

• 🧾 3% transfer tax rolled into the mortgage

• 🚫 2.5% prepayment penalty

• 🕐 50 days from intro → close

Why We Took a Mortgage Anyway

Could we have bought something else for cash? Sure.
But that’s not why we moved here.

We wanted a home, not just a house — a place our kids could grow up, in a neighborhood we love.

Plus, in the DR, the bank becomes your partner:

• They verify title and value.

• They handle due diligence.

• They’re basically saying, “We’ve checked this — it’s solid.”

Add a good attorney, and you’ve got two watchdogs protecting your deal.

🇩🇴 How Dominican Mortgages Differ from the U.S.

• Fixed rate period: usually 1–5 years (the 30-year fixed is a U.S. thing).

• Banks keep the loan: no Fannie / Freddie backing.

• Income considered: often just 10–30% unless structured correctly.

• Down payment:

  • Citizens → ~20%

  • Non-citizens → 30–50%

• Amortization:

  • Citizens → up to 30 yrs

  • Foreigners → 20–25 yrs

• Rates:

  • USD → 8–11%

  • DOP → 12–18%

And a few myths:

• You can’t get a DR mortgage from a U.S. bank.

• You won’t get a loan for pre-construction until the title is issued.

• Ground-up builds? Maybe — if you already own the land.

An important caveat - the above is GENERALLY true. Different banks may offer lower down, or more amortization, etc etc. But in general, the experience I’m sharing is what I’ve heard also from others.

Who You Should Talk To

🧑‍💼 Mortgage Broker

Handled everything. Negotiated, organized, translated “bank-speak” into human.
Fee: ~1–2 % of the mortgage.
👉 Connect with our Mortgage Broker →

⚖️ Attorney

Your legal anchor. Mine even handled my RNC (tax ID) when DGII gave me the runaround.
👉 Attorney Referral →

🏠 Insurance Broker

Our bank wanted $7200/year for property insurance.
Victor got us a $4,200/year policy — which included 10 % off through the Inner Circle.
👉 Get a Quote →

— Feel free to use ours or find your own - the important part is you have the right team around you. If you opt to work with one of the above referrals, they’ll likely pay me a referral fee.

Hidden Costs to Expect

• Attorney fees: ≈ 1 % of purchase price

• Bank closing fees: ≈ 1 % of mortgage amount

• Transfer tax: 3 % (often waived with CONFOTUR)

• Appraisal: ≈ $500 total across banks

• Broker fee: 1–2 % (credited at close)

• Annual property tax: 1 % on value > $170 K USD

Yes, fees add up — but they buy you peace of mind and a clean title.

The Exact Checklist We Used

☐ 3 months bank statements – show liquidity  
☐ LLC docs (for business income)  
☐ Proof of deposit paid to seller  
☐ Signed contract for property  
☐ 3 years tax returns  
☐ Credit report(s) – Credit Karma / Equifax / TransUnion  
☐ Driver’s license  
☐ Spouse’s cédula (if applicable)  
☐ Both passports  
☐ Signed W-9 forms  
☐ Proof of prior mortgage payoff  
☐ Proof of residency application (if any)  
☐ FATCA waivers  
☐ Proof of taxes paid to IRS  
☐ Real estate certification from seller  
☐ Title for property

⚠️ Quick Disclaimer

This checklist and story reflect our personal experience buying property and getting a mortgage in the Dominican Republic.

Every bank, broker, and buyer situation is different.

Referral Partners

If you’d like to connect with the people my family used, here are the links below along with the option to jump into the Inner Circle to connect with like minded people moving to, living in or investing in DR.

As always, do your own due diligence and ONLY work with someone if it feels right for you!

→ Mortgage Broker Intro
→ Insurance Broker Intro
→ Attorney Referral
→ Join the DR Inner Circle