There are a number of different types of home loans available to you when purchasing or refinancing in the USVI. While you may be familiar with the stateside variations of these loan programs, they may have significant differences in the USVI. We've done our best to highlight some differences below but it is important to consult with us about program avilability and the best mortgage options for your situation.
Conventional loans come in various types, including fixed-rate mortgages (where the interest rate remains constant) and adjustable-rate mortgages (where the interest rate can change over time). Conventional mortgages in the USVI require a downpayment of at least 20% due to a lack of private mortgage insurance (PMI) available in the territories. Conventional loans typically offer a range of term lengths, such as 15, 20, or 30 years.
FHA loans allow individuals who may not qualify for a conventional mortgage to obtain a loan, especially first time home buyers. These loans offer low minimum down payments, reasonable credit expectations, and flexible income requirements. FHA home loans are mortgages which are insured against default by the federal government through the Federal Housing Administration. One of the most notable features of FHA loans is their low down payment requirement, borrowers may be able to put down as little as 3.5% of the home's purchase price. While limited to the purchase of an owner occupied primary residence, being a first time home buyer is not a requirement. Learn More
VA loans were designed to provide housing and assistance for veterans and their families. One of the most significant benefits of a VA loan is that eligible borrowers can often purchase a home with no down payment. Similar to FHA mortgages, VA loans are also insured against default by the federal government, because the mortgage is guaranteed lenders will offer a lower interest rate and terms than a Conventional home loan. To apply for a VA loan, you'll need to meet certain eligibility requirements, such as having a valid Certificate of Eligibility (COE) from the VA. The COE verifies your eligibility for the program based on your military service history. Additionally, lenders will still evaluate your creditworthiness and financial situation to determine your loan terms. Learn More
A USDA Rural Development Loan is a type of home loan offered by the United States Department of Agriculture (USDA) to help individuals and families in rural and certain suburban areas purchase homes. One of the most attractive features of USDA loans is that they typically require no down payment. This can make homeownership more accessible for individuals who may not have substantial savings for a down payment. Despite common misconception these loans aren't just for farmers, anyone that meets the credit, income, and location guidelines can get one. Learn More
A DSCR loan (Debt Service Coverage Ratio loan) is a type of real estate investment loan designed for borrowers who want to qualify based on a property’s income rather their own personal income. Instead of verifying your job, salary, or tax returns, lenders look at whether the property generates enough cash flow to cover its debt payments. The shift in focus from the borrower’s personal finances to the investment’s ability to sustain itself makes them a powerful tool for building a rental portfolio.
A HELOC (Home Equity Line of Credit) can be a flexible and cost-effective borrowing option for tapping into built up home equity. One of its biggest advantages is flexibility: unlike a traditional loan where you receive a lump sum upfront, a HELOC works more like a credit card. You’re approved for a maximum limit, but you only borrow what you need, when you need it. This can be especially useful for ongoing expenses like home renovations, education costs, or emergency funds, since you can draw funds in stages rather than all at once.
A jumbo loan is a mortgage used to finance properties that are too expensive for a conventional conforming loan as determined by the Federal Housing Finance Agency (FHFA). Homes that exceed the local conforming loan limit require a jumbo loan. Also called non-conforming conventional mortgages, jumbo loans are considered riskier for lenders because these loans can’t be guaranteed by Fannie and Freddie, meaning the lender is not protected from losses if a borrower defaults. Jumbo loans are typically available with either a fixed interest rate or an adjustable rate, and they come with a variety of terms.
Our Team of USVI mortgage experts will work closely with you to help you understand your options and choose the mortgage that aligns with your financial goals.
