How Mainland Buyers Get Mortgages in Puerto Rico

Thinking about financing a home or investment property in San Juan but unsure how mortgages work in Puerto Rico? You are not alone. The island follows U.S. programs and rules in many ways, yet the process includes unique steps that can affect timing and documentation.

In this guide, you will learn the loan types available to mainland buyers, how underwriting works, what documents to prepare, and the Puerto Rico‑specific steps that influence closing. You will also see practical tips to avoid delays, especially for condos and coastal homes common in San Juan and El Cinco.

Let’s dive in.

Can you get a mortgage in Puerto Rico?

Yes. Puerto Rico is a U.S. territory, so most U.S. mortgage products are available. You can pursue conventional loans, FHA, and VA options, along with portfolio loans from local banks and private lenders. The main differences you will notice are local lender preferences, a notary‑centered closing, Property Registry steps, and island‑specific insurance requirements.

In practice, many mainland buyers find the smoothest path with local lenders or brokers who routinely close Puerto Rico loans. That local familiarity often speeds underwriting and helps you navigate notary scheduling and registry documents.

Lender types and loan options

Conventional (Fannie Mae and Freddie Mac)

• Pros: competitive rates for strong borrowers, and lower mortgage insurance with higher credit scores and larger down payments.
• Cons: lender overlays can be stricter for unique properties or limited comparable sales, which can affect some San Juan neighborhoods and coastal assets.

FHA loans

• Pros: low down payment options (as low as 3.5 percent) and flexible credit standards for owner‑occupied purchases.
• Cons: property condition standards can be strict. Deferred maintenance or certain property types can cause delays or denials.

VA loans

• Pros: eligible veterans and active duty members can access zero‑down options and competitive terms.
• Cons: property eligibility and appraisal standards must be met.

Portfolio loans from local banks

• Pros: banks that originate and service loans on island know the notary and registry workflow, and may be more flexible on local specifics.
• Cons: pricing and standards vary by bank. Compare quotes and timelines.

Credit unions and mortgage brokers

• Credit unions may offer competitive rates, subject to membership.
• Mortgage brokers can shop lenders that actively finance Puerto Rico properties, giving you a single point of contact.

Private and hard‑money lenders

• Pros: speed and flexible structures for investors or complex scenarios.
• Cons: higher rates, bigger down payments, and shorter terms.

Step by step: your San Juan mortgage

1) Get pre‑approved

Start early. A solid pre‑approval verifies your price range and uncovers issues before you write an offer.

Have these ready:

• Government ID and SSN or ITIN
• Last 30 days of pay stubs and 2 years of W‑2s
• Federal tax returns for the last 2 years
• Bank and investment statements for the last 2–3 months
• A list of assets, liabilities, and any rental income documents

Timing: same day to 1 week, depending on lender responsiveness and document completeness.

2) Make an offer and post deposit

Once you sign the purchase agreement, your earnest money is held by an escrow agent, attorney, or notary. Your lender will request the signed contract to open your loan file.

3) Complete your formal application

Your lender will ask for:

• Signed purchase agreement
• Homeowners insurance quote or binder, including wind or hurricane coverage if required
• Condo or HOA documents if buying a condominium
• Gift letter and donor statements if funds are gifted
• Proof of reserves and other assets
• Investor items such as leases and rental history, if applicable

Submission often takes 1–3 business days if your documents are ready.

4) Appraisal and property review

A licensed Puerto Rico appraiser will assess value and condition. In San Juan, appraisals typically take 7–21 days. FHA and VA appraisals include stricter condition checks, and repairs can be required before closing.

5) Underwriting review

The underwriter evaluates your income, assets, credit, the appraisal, and title items. Expect 14–45 days based on complexity, property type, and responsiveness. Delays often stem from condo documentation, appraisal questions, or title items that need clarification.

6) Notary and closing

In Puerto Rico, a notary is a licensed attorney who prepares and executes the public deed. You will sign before the notary, who then manages recording at the Property Registry. Scheduling the notary and obtaining registry certifications can add days or weeks, so coordinate early.

7) Recording and after‑closing tasks

After closing, the deed is presented for recording. Transfer taxes, notary fees, and registry fees are paid, and municipal property tax notifications are handled with the local office. Confirm insurance policies, including wind and flood if required, are active.

Documents checklist

Prepare clear copies and expect to provide updates if your closing extends over several weeks.

• Passport or U.S. driver’s license
• SSN or ITIN
• Last 2 years of federal tax returns and W‑2s
• 30–60 days of pay stubs
• 2–3 months of bank statements for all accounts
• Retirement and brokerage statements
• Proof of other income (K‑1s, 1099s, business returns if self‑employed)
• Signed purchase agreement
• Condo declaration, bylaws, financials, and insurance information if applicable
• Homeowners and hazard insurance quotes, and wind or hurricane coverage
• Gift letter and donor statements if using gift funds
• Evidence of funds for closing and wiring instructions
• Investor documents such as leases and rent rolls, if applicable

What is different in Puerto Rico

Notary‑centered closings

The notary prepares the public deed and oversees execution. Their schedule and fees are part of your closing plan. Expect to sign documents with the notary present.

Property Registry workflow

Title research involves certifications from the Property Registry that show any liens or encumbrances. Lenders rely on these records to approve your mortgage and clear title for recording. Registry timing can impact your closing date.

Transfer taxes and fees

Puerto Rico uses a distinct set of transfer taxes, registry fees, and notary fees that differ from typical county recording costs on the mainland. Your lender and closing attorney will estimate these once the contract and loan terms are set.

Language and translations

Spanish is common in legal documents and registry records. If you do not read Spanish, plan for bilingual guidance or translations to ensure you understand every step.

Hurricane and flood insurance

San Juan’s coastal exposure means many lenders will require windstorm or hurricane coverage, and flood insurance if the property sits in a mapped flood zone. Get quotes early, especially for waterfront or high‑rise condos.

Timelines and cost expectations

Most financed purchases in San Juan take about 30–75 days from contract to recorded deed. Here is a typical range:

• Pre‑approval: same day to 1 week
• Application to appraisal order: 3–14 days
• Appraisal completion: 7–21 days
• Underwriting to clear to close: 14–45 days
• Notary scheduling and deed execution: 7–21 days

Closing costs often fall around 2–5 percent of the purchase price, depending on loan type, notary fees, registry fees, and transfer taxes. Request a formal Loan Estimate and a final settlement statement for accuracy.

Condo and HOA checkpoints in San Juan

Condos are popular around San Juan and El Cinco, and lenders will review the building’s documents. Plan for:

• Project financials and reserves
• Insurance coverage for the building
• Any special assessments or pending litigation
• Owner‑occupancy rates and HOA delinquency levels

These items can affect eligibility and timing, so ask for the package early, especially if you are under a tight closing timeline.

Owner‑occupied vs investor loans

If you plan to live in the home, you may qualify for programs with lower down payments and more favorable pricing. If you are buying as an investor, expect higher down payments and rates, plus documentation of rental income and reserves. Be clear with your lender about occupancy from the start so you receive accurate terms and disclosures.

Practical tips to avoid delays

• Start pre‑approval early. It sets expectations and uncovers issues before you make an offer.
• Choose lenders experienced with Puerto Rico closings. Local familiarity reduces back‑and‑forth on notary and registry items.
• Coordinate the notary and title work early. Agree on a notary who does real estate closings regularly in San Juan.
• Order insurance quotes early. Wind and flood requirements can change costs and timelines.
• Collect full condo documentation up front. Building eligibility issues are a common source of delay.
• Budget for local fees. Include transfer taxes, registry fees, and notary costs in your cash plan.

How ARK supports mainland buyers

You get concierge guidance across lender selection, offer strategy, condo due diligence, and notary coordination. Our team works daily with local banks, mortgage brokers, and closing attorneys who navigate the Property Registry and bilingual documentation. Whether you are a relocating buyer, a second‑home shopper, or an investor focused on San Juan and nearby markets, we help you streamline the process from pre‑approval to recorded deed.

Ready to map your financing path in San Juan or El Cinco? Schedule your private consultation with Luis Alejandro Perez.

FAQs

Can I use my mainland bank for a San Juan home?

• Possibly. Some mainland banks do not support Puerto Rico closings or have limited programs. Local lenders and brokers often deliver a smoother process.

Are FHA and VA loans available in Puerto Rico?

• Yes. These federal programs extend to Puerto Rico, though lender participation and property‑specific requirements can vary.

Do I need a Spanish‑speaking attorney or notary?

• Not required, but many documents and closings are in Spanish. If you do not read Spanish, hire bilingual counsel or a translator.

How long do financed closings usually take in Puerto Rico?

• Most financed purchases take about 30–75 days from contract to recorded deed, depending on appraisal, underwriting, and registry timing.

What closing costs should I budget for in San Juan?

• Plan for lender fees, title search and insurance, notary fees, registry fees, and transfer taxes. A 2–5 percent range is common, but confirm with your lender and closing attorney.

Can investors finance condos in San Juan and El Cinco?

• Yes, but expect higher down payments, higher rates, and more documentation of reserves and rental income. Lenders also review condo project eligibility.