Unlike the mainland where 80% of residential mortgages are written by Bank of America, Chase Bank, Wells Fargo and Citibank; the major institutions financing property in the Virgin Islands are First Liberty, Scotia Bank, First Bank and Banco Popular.
Financing property in the Virgin Islands has been tight, as it has on the mainland. Low interest rates have cause banks to tighten their lending profiles. With the recent increase in interest rates there probably will be a positive effect on the availability of financing for property in the Virgin Islands.
The President of the National Associations of Realtors, Gary Thomas, recently blogged:
"While there is currently no evidence of rising interest rates slowing the economy, they will invariably have an impact on loans.
I believe there is reason for hope. Although it’s likely that fewer people will refinance, since they already have low interest rates, banks will still need to make money. As a result, they may need to increase loan originations. To do so, there is a very good chance that lenders could ease credit standards away from over-stringency to ensure the greatest number of qualified buyers have access to mortgage interest.
While you may be hearing concerns from your clients about rising interest rates, don’t despair. .............it’s not necessarily bad news for real estate if rising interest rates are balanced with opening credit to more consumers.
...................... if the economy can recover as much as it has under tight credit conditions, it may do even better as credit steadily returns to normal."
So if you were considering financing property in the Virgin Islands, now is the time, while interest rates are still at historic lows, inventory is high making it a perfect time to purchase property in the Virgin Island. Let us help you find the perfect property/