Can I use a mortgage company from the continental USA to finance my purchase in Puerto Rico?
While it is possible for a US-based bank or mortgage company to provide financing for the purchase of property in Puerto Rico, there are some reasons why it may be more advantageous to use a mortgage company based in Puerto Rico.
Firstly, Puerto Rico has its own laws and regulations that govern the purchase and financing of property, and a mortgage company based in Puerto Rico will have a better understanding of these laws and regulations. This can be particularly important if you are not familiar with the local laws and regulations, as it can help ensure that your financing process goes smoothly.
Additionally, using a Puerto Rico-based mortgage company may provide access to financing options that are specifically designed for Puerto Rico. This can include programs that offer lower interest rates or better terms than what may be available from a US-based bank.
Furthermore, using a local mortgage company may also provide more personalized service, as the company will be familiar with the local real estate market and may be better equipped to provide guidance and assistance throughout the financing process.
At Paraiso Realty we have not recently seen any bank in the continental US finance a deal in Puerto Rico. While Puerto Rico is part of the US, it appears the US and PR banking systems treat each other as if they are separate international entities. While it is worth talking with your local lender in the US about purchasing a property in PR, we doubt they will finance a mortgage here for you.
We have had clients pull money out of their homes in the states with home equity loans, and then use that cash to purchase homes down here, however we have not had anyone use a US based bank to receive direct mortgage financing.
If you will need financing for your purchase in PR. We suggest lining up the financing ahead of time before starting your property search. Most real estate brokers in PR will require Proof of Funds or a PreQual letter from a lender before seeing any properties, so it is prudent to work on this due diligence in advance.
If you are looking for a PR based mortgage company, we have a few banks and names to recommend. When you first talk with them, feel free to let them know we recommended their services:
First Bank: Giulianna Perlloni, giulianna.perlloni@firstbankpr.com, 787-307-3606
Oriental Bank: Alison Ramos, alison.ramossuarez@orientalbank.com, 939-282-0608
Cross Country Mortgage: Lawrence Johnson, Larry.Johnson@ccm.com, 720-684-7141
Capital Mortgage: Hector Orta, ho@tucapitalpr.com, 787-310-6222