Puerto Rico Real Estate Financing

Financing your home in Puerto Rico is pretty much the same than in the States. The same financing choices are available, Conventional, FHA and VA. Interest rates are a little bit lower than in the States due to a tax shelter (tax code 936) given to American corporations that are based in Puerto Rico. The funds generated by this tax shelter, approximately 3 billion dollars, must be deposited in the local banks and are to be used to provide mortgage loans. Thus, interest rates are lower.

Below we provide you with a list of items that you may be required at time of loan application.

Addresses where you and the co-borrower have lived for two full years.
Renters need to bring name and address of landlords. Owners need to bring name, address and account number of the mortgage company.
Names and address of all employees for the past two years. Current pay stubs showing earnings year to date. W2's for the previous year or past year tax returns.
Self-employed persons must bring the most recent two years tax returns, a current years Profit and Loss Statement to date, plus a personal financial statement. If the self- employed business is incorporated, you must bring the above items on the corporation. All tax returns must be signed by the borrower.
Social Security numbers on all borrowers.
Names and addresses of all banks, savings and loans, credit unions, etc...where you have funds on deposit and their account numbers, plus copies of most current statements.
Names, addresses and account numbers of all current monthly payment accounts. This includes banks, mortgage companies, finance companies, credit unions, etc...Please have the amount of payments and the approximate balance (plus copies of most current statements, if possible).
Names, addresses and account numbers of all credit cards, except gasoline cards (plus most current statement on each card, if possible).
You may need a copy of your divorce decree if you have ever been divorced. Bring a copy of the complete bankruptcy proceedings and discharge filed and a list of creditors, if applicable.
If you have sold your current home, you will need a copy of the Sales Contract. Make sure that all additions to the standard contract are legible. (Addresses, legal descriptions, amount, contains all necessary signatures, initials, etc...) For FHA mortgages - copies of your Social Security cards and Driver's license and child care expenses, if any.
If you are receiving gift funds, the lender will require that the funds be verified in the donor's account. Consult your agent for a gift letter form. If you are applying for a conventional mortgage, you will need to show at least 5% of your own funds.

*Please note that if you have all the above information on your first trip to town and if you decide on a home to buy then you will be able to do your loan application before you go back home.