The new Official 2022 maximum loan limits were just released. Nathan Purdome, of Schaffer Mortgage here on St. Croix, shared them with us and we want to pass them on to you. Thank you so much Nathan.
Christie and I would love to answer any questions you have about purchasing a property on St. Croix, getting a mortgage or anything else about the buying process. Please contact us, we’d love to talk with you.
Conventional:
1-unit: will be $970,800
2-unit: will be $1,243,050
3-unit: $1,502,475
4-unit: $1,867,275
FHA on St. Croix are as follows:
1-unit: will be $420,680
2-unit: will be $538,650
3-unit: $651,050
4-unit: $809,150
Conventional (also known as “conforming”) loans are available through private lenders, such as banks, credit unions, and mortgage companies and are a great option if you have a solid credit score and sufficient down payment. Conventional financing can be utilized for a primary residence, second home, or investment property.
FHA loans are backed by the federal government and as such will allow for a lower minimum down payment. FHA loans are also more forgiving of lower credit scores. FHA loans are only available for primary residence but will allow for up to a 4-unit property.
Both FHA and Conventional loan amounts have maximum loan limits. These limits will vary based on the number of living-units on the property and the property location. Properties with over 4 units are considered commercial and do not qualify for FHA or conventional loans.
Question: What are some common terms dealing with real estate?
Christie’s Answer: Whether buying or selling, understanding real estate terms can make the sometimes overwhelming or confusing process simpler. For example, here are some commonly used terms:
Market Value: what a buyer is willing to pay for a property. It’s influenced by comparable sales which is the “going rate” for nearby homes that share a lot of characteristics with your listing, as well as the appraised value from a professional appraiser. This can be different from the assessed value which is used to calculate and levy property taxes.
Comparative Market Analysis (CMA): an estimate of a home’s value based on recently sold, similar properties in the immediate area. Real estate agents and brokers create CMA reports to help sellers set listing prices for their homes and sometimes to help buyers make competitive offers. Although buyers and sellers can do their own research and analysis, it is important to have someone who has deep knowledge of the local market to help.
For more frequently used terms, here is a wonderful article with a glossary of real estate terms which might be of assistance. If you have questions about buying or selling a home, contact us.
Question: What are the benefits of a 1031 exchange, and am I qualified?
Chris’ Answer: When you sell your investment property, you will be required to pay a capital gains tax on your profits at either a short-term or long-term capital gains rate. But, if you instead reinvest profits from the sale in a like-kind property of the same or greater value, Internal Revenue Code Section 1031 provides for you to defer the tax liability.
1031 Basic Qualifications:
The new investment property must be of “like-kind” to the property being sold.
A personal residence will not qualify for the exchange, but a vacation home used predominantly as a rental property could qualify.
The like-kind property to be purchased must be identified within 45 days; the purchase must be completed within 180 days after the sale of the original property.
A Qualified Intermediary must ensure that all eligibility requirements are adhered to.
There are limitations on the amount of capital gain that may be tax deferred.
Always consult a tax advisor before making arrangements for a 1031 exchange.
Do you have other real estate questions? Contact us!
Back in June 2021, Children First St. Croix revealed plans for a new look for the Midre Cummings Playground in Frederiksted. The organizers had then estimated that the project would need a total of about 1,200 volunteers, a minimum of 270 people per day, for a multi-day build. The complete rebuild of the Midre Cummings Playground was accomplished recently in just 9 days (from November 12-21). You can watch a 11 minute VI Consortium video here, reporting scenes from the last day of build. With the help of volunteers from local non-profits, businesses, sororities, fraternities and more over the course of less than 2 weeks, Crucians have come together to transform a green space into a beautiful playground for children.
Midre Cummings is a St. Croix native who played for 11 years in Major League Baseball. He visited the site, greeted volunteers, and remarked on the amazing work accomplished.
St. Croix was recently named a top destination for winter travel by Expedia. At the same time, there is a recent ease on restrictions across the territory. We are excited to see and hear about new eateries and cafes opening in the territory, ready to welcome tourists and residents who are ready to dine out. The St. Croix Source featured three new establishments in Christiansted that offer a variety of options and flavors.
Roots-N-Kulchah‘s Chef Kimba Kabaka prepares vegan and plant-based meals in his one-man kitchen. The eatery has courtyard seating and offers rich lunch or weekend dinner.
ParrotFish features gourmet pub food. It is a downtown sports wine bar with wall-mounted flat-screen televisions in the modern, clean dining room and bar.
Virgin Islands Coffee Roasters was opened in June and sells coffee brewed from beans roasted on St. Thomas and concocted in a wide variety of caffeinated beverages by baristas.
