Friday, January 25, 2013

Easy to Buy a Home in the US Virgin Islands?

So I am back to doing residential real estate, just not in Reno, NV, but in paradise on the Island of St Thomas in the US Virgin Islands!

Check out my real estate webpage: From there you can search the MLS and see what we have going on here!

Here is an article I wrote for my real estate blog about how easy it is to finance a home here:

The US Virgin Islands? Yes we are a United States Territory, and with that designation, buying a home is just like buying a home in the states. We have deeded property here and the sales process is just like buying a home in states.

Well what about financing? Yes, financing here is just like the states. We have all the same financing programs here in the US Virgin Islands. Buying a home here now is easy than ever before, especially with the low interest rates and higher loan limits.

Conventional Financing? Yes we have conventional financing.

Financing up to a loan amount of $625,000 and 2 unit (which many homes here have a main house and then a smaller apartment) $800,775.

Interest rate (estimate only as rates change daily but here is the latest rate) 3.4% APR

Average home price here on the Island of St. Thomas 2012 was $456,000.

20% down payment of $91,200.

Loan amount of $364,800.

30 year loan payment a month of $1617.82 (does not include property taxes or home owners insurance).

FHA financing? Yes we have FHA financing!

FHA requires only a 3.5% down payment. The home must be a primary residence and a credit score of 640 or better.

Financing a loan up to $446,200 and 2 units $571,200.

Interest Rate (estimate only) 3.25% APR

Average home price $456,000.

Down Payment of $15,960 (less than the price of a good used car?)

Loan amount of $440,040.

30 year loan payment of $1915.08 (does not include property taxes or home owners insurance).

VA financing in the US Virgin Islands?  Yes we have VA financing!

VA loans are zero down loans and must be a primary residence.

Financing up to a loan amount of $625,500.

Zero Down Payment!

Loan amount of $456,000

Interest rate with VA loan (estimate only) 3.25% APR

30 year loan payment of $1984.54 per month (does not include property taxes or home owners insurance).

So as you can see home financing here in the US Virgin Islands is easy and with reasonable payments. These interest rates are at historic lows and eventually are going to go up. There is no better time than now to buy a home a now with low home prices and low interest rates? In 2-3 years, ask yourself if waiting to buy a home was a good idea?

Many people that I know that live here full time on the island are paying $2000 - $3000 a month in rent for a nice home. Sometimes those homes have a downstairs apartment too, which would rent out for $800 - $1000 a month. Take that income and subtract that from your FHA loan payment of $1985 and you would be living in a home that you own for only $985/mo, or about half of what you are paying your landlord?  Do you think that it would make sense for you to own rather than rent?

If it does make sense for you to own here in the US Virgin Islands, contact me today!

*Ken Wiseman is not a home loan officer, all information herein is for educational purposes only, please contact a qualified home loan officer for your home financing needs.



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