Bryan announced moderate-income homeownership financing program in U.S. Virgin Islands

Gov. Albert Bryan Jr. announced on Oct. 20, 2022, a homeownership financing program for first-time buyers in the U.S. Virgin Islands that was to be administered by the Virgin Islands Economic Development Authority in partnership with local banks.

Government House said the VI Slice Moderate Income Homeownership Program would provide up to $200,000 in gap financing to applicants who qualified for a conventional mortgage through a participating bank and met the program’s other requirements. Representatives of Banco Popular, FirstBank, Oriental Bank and the Bank of St. Croix joined Bryan for the announcement.

According to the announcement, the program was to support home purchases with rehabilitation, new home construction, down-payment and closing-cost assistance of up to 20%, and secondary gap financing. Government House said down-payment assistance could be provided as a grant or a no-interest second mortgage loan and would convert to a grant after the borrower lived in the property for at least 10 years.

The administration said the program included restrictions requiring the property to be used as a primary residence and limiting its use as a vacation rental or Airbnb.

To qualify, applicants had to meet household income requirements, obtain a mortgage commitment letter based on the primary lender’s underwriting standards, and provide a minimum earnest-money deposit of $5,000. The earnest-money requirement could be waived for veterans with a certificate of eligibility or an honorable discharge documented by a DD214.

Applicants also had to have been residents of the territory for the three years before signing a sales contract, except for people who had previously lived in the territory for at least 10 years and returned, or whose birthplace was the U.S. Virgin Islands.

Official source: https://www.vi.gov/governor-bryan-announces-new-program-to-help-moderate-income-virgin-islanders-achieve-homeownership/