Top 5 Tips For Buying Condos In Puerto Rico

Condominiums are a great option for many people looking for a low maintenance home, 2nd home, or a lucrative vacation rental property. Puerto Rico offers many beautiful places to own a condo, but buying a condo in PR can lead to some specific challenges. I made this video to discuss the top 5 things people should know when using other people's money (i.e. mortgage financing) to buy a condo in Puerto Rico in order to avoid the headaches and finally get your piece of paradise.
1. Are condos a riskier investment? The pros and cons.
2. What does it mean for a condo to be "warrantable" and why does that matter?
03:58 Condo Warrantability
3. FHA and VA pre-approved condo lists:
FHA- entp.hud.gov/i...
VA- lgy.va.gov/lgy...
4. How to purchase a non-warrantable condo.
5. The ONLY thing a condo really needs.... master policy insurance.
Click here and answer the questions for a free financial analysis and/or pre-approval: colablending.m...
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[@TBaggingSociety]

Can I use projected rental income for season(s) I won't be living there to qualify for a higher VA Loan amount even though it would be my primary residence? My goal is to max out the VA Loan benefit to build as much equity as possible at zero down. And/or use projected rental income by renting out a spare room while I am there, or is that only possible with multiunit properties?

[@gringocriollonate]

Rental income from the subject property can only be considered is the property is a multi-family property and only long term lease income. So they wouldn't not consider boarder income from a room. Hope this helps!

[@TBaggingSociety]

@@gringocriollonate Yes, it certainly does help.Thanks for the info!

[@gringocriollonate]

@@TBaggingSociety Sure thing! If you have any other questions, feel free to reach out: [e-mail]

[@dumpsterfire6351]

Here I am….looking to buy cash
Screw these rules

[@joaoroca4690]

For condo’s on conventional loans, what is the LTV. Is it always 80% or can it be above 80%?

[@gringocriollonate]

Thanks for your comment! That will depend on the intended purpose of the property and the loan program. If it would be used as your primary home, FHA allows 3.5% down. Conventional primary home would be 5%. If it would be for a 2nd home, 10/15% is possible in the current market (rates have been hard to get for months and this is only recently possible). If it woul dbe for an investment property, 20/25% down would be needed.

[@joaoroca4690]

@@gringocriollonate Thank you!!!

[@fernandomejia5712]

Would you have a list already of condos that meet the warrantable and master insurance?

[@gringocriollonate]

Hi Fernando, unfortunately we don't have a list because warrantability is a moving target since a condo could be warrantable 1 month, but not another due to financial issues that crop up, changes in administration, special assessments, litigation, etc. So lenders will still want to evaluate a condo's warrantability right once the loan goes to underwriting.

[@ivanramos6730]

Modern day colonizer ladies and gentlemen

[@gringocriollonate]

Nope. La mayoria de mis clientes son boricua.