Plan for Seventy-Five Days, Not Thirty
The Virgin Islands is a U.S. territory, so the legal framework, the dollar, and the title system will feel familiar to a mainland investor. The timeline will not.
Expect roughly 75 days from contract to closing. The constraint is not underwriting it is that the territory has a limited number of title companies and appraisers serving three islands. An appraisal alone commonly takes about a month.
If you write a 30-day contract here you will be asking for extensions before you have a loan estimate. Build the real timeline into your offer, and order the appraisal the day the contract is executed rather than after inspection.
The second thing to plan for is insurance, which is a genuinely different animal here see below.
Who Actually Lends in the Territory
The lender universe is small, and this is the practical starting point for any Virgin Islands purchase.
Select Home Loans
Select Home Loans is a Non-QM mortgage broker (NMLS #2384002). Most mainland Non-QM wholesale investors exclude the territories outright, which means the first question on a Virgin Islands file is not pricing it is who will lend at all. Working across multiple shelves is how you find out quickly rather than after three declines.
We quote DSCR and bank statement alternatives alongside the 1099 program where they are available.
Get a quote · (888) 550-3296
Other lenders worth calling — listed in no particular order:
Schaffer Mortgage Corporation Described as the longest-established on-island residential mortgage broker serving the USVI, with officers across St. Croix, St. Thomas, and St. John. Publishes VA, FHA, USDA, DSCR, and conventional programs. Genuinely local, and the DSCR capability matters given how few investor products reach the territory.
Virgin Bay Mortgage An on-island mortgage operation specializing in USVI lending.
Banco Popular A major regional bank with a Virgin Islands presence and residential lending operations.
FirstBank Regional bank lending in the territory.
Merchants Commercial Bank A locally focused bank operating in the Virgin Islands.
Oriental Bank Regional bank with Virgin Islands operations.
Mortgage lenders and brokers in the territory are regulated by the Division of Banking, Insurance and Financial Regulation under the Office of the Lieutenant Governor. Confirm any lender’s territorial licensure before proceeding see the disclaimer at the end of this page.
Insurance Is the Number That Changes Everything
Windstorm exposure drives Virgin Islands carrying costs to a level mainland investors consistently underestimate.
Premiums run substantially above mainland equivalents, and windstorm coverage is generally a condition of financing rather than optional.
Condo buyers face this indirectly and severely. Homeowners association fees in the territory commonly run $800 to $2,000 or more per month, and the primary driver is the association’s master policy windstorm premium rather than amenities or maintenance. That is a mortgage-sized expense sitting outside your mortgage, and it enters your debt-to-income calculation and any debt service coverage ratio in full.
Review the association’s reserves before you buy. Underfunded reserves plus storm damage produces special assessments, and the territory has been through enough storms for this to be a live risk rather than a theoretical one.
Property condition affects premium directly. Hurricane shutters or impact-resistant glazing, roof tie-downs, and construction to current code all reduce cost. A property that has been hardened is worth materially more to your operating math than the purchase price difference suggests.
Get a real binder on the specific property before you finalize an offer price. On a mainland deal that is good practice. Here it is the deal.
How Qualifying Works
A 1099 loan qualifies you on income documented on your 1099 forms rather than the net profit shown after deductions.
Programs split into two camps. Some apply 90 percent or more of gross 1099 income with no expense deduction. Others apply an expense factor of 10 to 25 percent first.
On $180,000 of annual 1099 income:
| Method | Qualifying income |
|---|---|
| 90% of gross | $162,000/yr — $13,500/mo |
| Gross less 20% expense factor | $144,000/yr — $12,000/mo |
| Net profit from your tax return | frequently under $80,000 |
A note specific to the territory: private mortgage insurance is generally not available here, which is why conventional financing typically requires at least 20 percent down. On investment property expect 25 percent or more regardless of program, and confirm the floor before you shop.
Model the payment with our mortgage calculators and include the real insurance figure and, on a condo, the full HOA.
One year or two
Tourism drives the territory’s economy, and tourism is seasonal. Twenty-four months is generally the right lookback for anyone whose income tracks the visitor calendar charter operators, guides, hospitality, marine trades, and the trades serving them.
The islands have also absorbed genuine shocks. If a recent twelve-month period included storm disruption, say so in writing before the file goes in rather than answering a condition later.
The 1099 Population Here
Marine and charter operators, the territory’s signature independent trade.
Hospitality and tourism operators, seasonal and heavily self-employed.
Construction and restoration trades, with sustained demand from rebuilding and hardening work.
Remote professionals and consultants, a growing group whose income has no local seasonality often the cleanest files in the territory.
Real estate and property management professionals serving a market with substantial second-home and investor activity.
The Short-Term Rental Market
The territory’s short-term rental market has grown substantially, and all three main islands St. Thomas, St. John, and St. Croix generate rental income, though occupancy and nightly rates vary considerably by island, location, and property type.
Two cautions. Operating costs here are higher than the nightly rate suggests management, cleaning, utilities, and insurance all price above mainland equivalents, and on a condo the HOA discussed above sits on top. And verify permitting and any applicable territorial requirements for short-term rental use before you close.
Property Taxes Are the Good News
Annual property tax rates in the territory run in the range of 1.00 to 1.25 percent of assessed value but assessed values are frequently well below market, which keeps actual bills relatively modest compared with many mainland markets.
That is a genuine advantage, and it partially offsets the insurance burden. Pull the actual bill rather than applying the rate to your purchase price.
Investment Property Terms
- Down payment: 25 percent or more is realistic; PMI is generally unavailable in the territories
- Credit: varies by lender; the small lender universe means less pricing tiering than on the mainland
- Reserves: expect meaningful reserves given the insurance and HOA exposure
- Timeline: 75 days is a realistic planning assumption
Compare with our purchase loan options and refinance loan options.
1099 or DSCR?
DSCR is available in the territory but through a much narrower set of lenders than on the mainland. Where it works, it works a documented short-term rental with real trailing platform income on St. Thomas or St. John can support a file.
Use a 1099 loan where the property has no rental history, where the HOA and insurance stack has pushed the ratio below floor, where the property needs hardening or repair before it earns, or simply where the DSCR-capable lender universe does not include anyone who will write your property type.
Questions to Ask
- Do you lend in the U.S. Virgin Islands at all, and on which islands? (Ask this first, every time.)
- What is your realistic closing timeline here, and when should the appraisal be ordered?
- What is the full HOA figure on this condo, and what share is the windstorm master policy?
- Do you qualify on gross 1099 income, or apply an expense factor?
- My income is seasonal will you run the 24-month scenario?
- What are the association’s current reserves, and has there been a recent special assessment?
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Disclaimer
The lenders described on this page are listed in no particular order. Select Home Loans appears first because we publish this page and originate these loans; we have a commercial interest in this category. No lender listed has paid for placement.
This page reflects our opinion based on publicly available information at the time of writing. It is general information, not a recommendation, an endorsement, or an offer of credit. Lender programs, guidelines, licensure, pricing, and availability change frequently and without notice, and nothing here guarantees that any lender is currently licensed in the U.S. Virgin Islands, currently offers the program described, or will approve your file.
Insurance availability and pricing, association fees and reserves, short-term rental requirements, and property tax assessments vary by property and change; verify them independently. Consult a licensed mortgage professional and where appropriate a tax advisor, attorney, or financial advisor before making any borrowing decision. Confirm territorial licensure through the Division of Banking, Insurance and Financial Regulation and through NMLS Consumer Access at nmlsconsumeraccess.org.
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