Investing in Real Estate in the Dominican Republic: The Advantage of Developer Financing

One of the key benefits of investing in real estate in the Dominican Republic is access to flexible developer financing and payment plans for pre-construction projects. Many developers offer in-house financing, allowing investors to secure a property with a down payment—typically between 10% and 30% of the purchase price—followed by scheduled monthly or quarterly payments during the construction phase. These plans are often interest-free. The remaining balance is paid in a final lump sum upon delivery.

While these financing options are convenient, it’s important that both parties carefully review the terms and conditions of the agreement. It can be more accessible than traditional bank loans, potentially with flexible payment terms, but also carries risks like delays and potential quality issues. Seeking legal advice is highly recommended to ensure transparency and protect the buyer’s interests throughout the transaction.

Developer financing reduces the need for large upfront capital and eliminates the hassle of traditional loan applications and credit checks. The buyer can make flexible payments during construction. Once the project is completed, investors can apply for a mortgage to cover the final payment. Notably, the Dominican Republic allows foreign buyers—even those without residency or citizenship—to obtain mortgages. Some developers even have established partnerships with local banks.

Loan-to-value (LTV) ratios generally range from 60% to 80%, depending on the buyer’s residency status and credit profile. Mortgage interest rates typically range from 8% to 13%, with terms up to 30 years.

This financing model allows investors to preserve liquidity, diversify their investments, and make property ownership in the Dominican Republic more accessible and affordable.