US Virgin Islands Mortgages

St. Croix, St. Thomas, St. John

Buccaneer Mortgage offers several mortgage products in the US Virgin Islands, FHA, VA, and Conventional Products. 

FHA Loans

FHA or the Federal Housing Administration is the most commonly used product for First Time Homebuyers, however FHA can be used by anyone who is purchasing or refinancing their primary resident even if they are not a first time home buyer. Even if you are looking to upgrade to a larger home you may qualify for the FHA product. The definition of a First Time Home Buyer is anyone who has not owned a property within the last 3 years, therefore if you sold your home or gave up ownership rights within the last three years you are considered a First Time Homebuyer.

The FHA loan only requires a 3.5% down payment and will allow the seller to pay up to 6% of the closing cost. Closing cost are the expenses such as insurance, title company fees, loan origination fees, lender fees, local and state taxes and appraisal cost. The FHA loan offers fixed or adjustable rate mortgages and all products come without a prepayment. Although the FHA loan is usually a great choice for First Time Home Buyers it is not limited to First Time Home Buyers. Anyone who does not currently have an FHA loan may use the FHA program to purchase a primary residence. FHA also does not have an income limitation; however loan limits vary based on the area of purchase. Although FHA is not strict on credit scores most lenders require a minimum of a 620 middle score for approval.

The FHA program is a government insured loan which requires the borrower to purchase an insurance policy on the mortgage in case they default on the loan. The insurance premium requires the borrower to pay a small monthly payment towards the premium and a onetime fee equal to 2.25% of the loan amount. The 2.25% is usually added to the loan and financed within the loan instead of becoming an additional closing cost. This insurance premium is completely different from the homeowner’s insurance policy that is required by the lender.

VA Loans

VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase of a home. The guaranty means the lender is protected against loss if you fail to repay the loan. In most cases, no down payment is required on a VA guaranteed loan and the borrower usually receives a lower interest rate than is ordinarily available with other loans.

Other benefits of a VA loan include:

• Negotiable interest rate.
• Closing costs comparable – and sometimes lower - than other financing types.
• No private mortgage insurance requirement.
• Right to prepay loan without penalties
• Mortgage can be taken over (or “assumed”) by the buyer when a home is sold.
• Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan.

Although mortgage insurance is not required, the VA charges a funding fee to issue a guarantee to a lender against borrower default on a mortgage. The fee may be paid in cash by the buyer or seller, or it may be financed in the loan amount.

A VA loan can be used to buy a home, build a home and even improve a home with energy-saving features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/ caulking, storm windows/doors or other energy efficient improvements approved by the lender and VA.

Veterans can apply for a VA loan with any mortgage lender that participates in the VA home loan program. A Certificate of Eligibility from the VA must be presented to the lender to qualify for the loan.

Conventional Loans

Conventional Mortgages are primarily provided by Fannie Mae and Freddie Mac and are alternatives to FHA and VA loans or government loans. Currently conventional mortgages in Florida and the US Virgin Islands can be utilized to purchase and refinance primary residents and investor properties up to four units. Conventional mortgages offer home loans with and without mortgage insurance with a maximum loan amount of 95 percent.

At this time conventional mortgages normally require a minimum credit score of 620 in order to qualify for a minimum loan and as high as a 720 credit score for some options. Conventional loans offer fixed and adjustable rate products and most products come without a prepayment penalty. For additional information please contact Buccaneer Mortgage at 1-561-312-7777.