Financing Property in the US Virgin Islands
America’s Caribbean Paradise, the US Virgin Islands are the perfect place for your dream property in the sun. With all 3 destinations, St John, St Thomas and St Croix, bringing a very different experience, there is something for everyone.
With over 100,000 residents, and 2,000,000 visitors a year, the USVI are primarily a tourist based economy. Of course with all those tourists, Rum is also a major industry in the region. On top of the ease in which Americans can travel to the islands, the dollar, language (English is predominantly used throughout the islands), and location make the US Virgin Islands a very popular destination for both tourists and second home buyers alike.
Requirements for Acquiring a Home Loan
The US Virgin Islands are very popular with Americans who see it as more familiar than buying under a British, French or Spanish jurisdiction. We are able to finance properties in the USVI up to 50% of the property value with private home loans.
Our only options for financing (residential) at this time is a non bank jumbo loan, with a minimum mortgage amount of $750,000. For resort financing we have access to private capital, both for existing and construction projects.
Getting a Mortgage in the US Virgin Islands
There are a few requirements which will be applicable to the residential lender we work with in the US Virgin Islands. You will be required to have 50% equity in the home, and the property must be in the tourist or expat areas of the island, with preference given to waterfront homes. The minimum property value for a private loan is $1,500,000.
Although there are higher rates and fees for our private mortgages in the USVI, they can be a much quicker and easier process than trying to finance through the local banks. The banks in the USVI can be a little slower and the qualification is a bit more difficult than you would see on the mainland.
Resort and Hotel Financing
Although we do not have any bank financing when it comes to hotels and resorts, we do have private capital. This source of financing is much easier to get at this time as the banks shy away from large commercial projects in the Caribbean. The rates and fees will be higher, but time is money with these types of properties. We can secure you the funds much quicker, with much less paperwork.
One thing to keep in mind when it comes to financing resorts and hotels with private capital, is the due diligence deposit. These lenders ask for a deposit upfront to cover the costs of doing their due diligence. These deposits can be negotiated somewhat in terms of the amount, but they will not review your loan application until they know you are paying these costs and you are not shopping around for other options while they are underwriting your file.
Talk to us today about all of our mortgage options in the USVI. We can usually tell you right away whether your property/situation will work with our Caribbean mortgage lenders. Your new vacation property is just a click away!