How to get a mortgage or home loan for investment property in Puerto Rico from the US

[AJ Wong]

I've been a mortgage broker twice as long as I've been a surfer but I think the professional experience might truly be about to pay off! lol 

I'm originally from South Florida and buying an investment property near surf in Puerto Rico has been on my radar for a while, my father and I visited in 2018 and at the time were browsing multi family properties. The problem was that mortgage financing wasn't readily available and so the upfront capital investment was just too intensive. 

By happenstance the lender I work for treats the territory like a mainland loan (think Hawaii) and almost all conventional programs are available and even priced accordingly. The main hiccup and hinderance for obtaining a mortgage for an investment property in PR is that all files are manually underwritten and the title process can be slightly more intensive. 

Now that we've finally finished our casita in North Baja Mexico we're considering expanding our portfolio somewhere warmer in the coming months or years.. 

We would utilize our investment property in Puerto Rico as a second home or STR. We couldn't quite move there full time in the near term, but a realistic gameplay would be at least 6 months per year within the next decade to take advantage of the tax incentives. Our wishlist includes a view or access to the ocean for surfing and at least a nearby marina or launch for a boat, although our initial target area is in Rincon.

There are definitely some challenges and concerns, like the infrastructure, but I have another friend that relocated there full time post the most recent hurricane and has been rebuilding a lot of the power grid. Being in Mexico the past several years has prepared us for almost any adventure. 

Unlike Mexico, where foreign loans and conventional mortgages are non-existent, the mortgage rates and programs for buying a home in Puerto Rico from the US are not only available but actually attractive. If it was a primary residence, there are conventional low LTV's, and as a popular second home destination,10-15% down payments for a SFR is common for well qualified buyers. Investment properties typically require at least 15-25% down but at standard rates.

My fiancé is an interior designer and her friend from Las Vegas just bought an STR they hired her to furnish this summer. It's more of a luxury property but supposedly they can perform really well as full time rentals. We'll let you know how our search goes! Any HOT BNB areas we should check out?

Would you invest in a second home or STR in Puerto Rico if you could get a US based mortgage or home loan?

DM me for any insights or details, yo hablo español.