Bryan to Meet With Banks to Introduce Zero-Down Payment Mortgages in USVI; Program Would Make it Easier to Own a Home in Territory

With homeownership being one of the most sought-after goals for many families, the Bryan administration is preparing a program that utilizes federal dollars for zero-down payment mortgages with the aim of making it easier for Virgin Islanders to own a home.

As part of the program, prospective homeowners would not be required to make a downpayment — currently at 20 percent of the cost of the home for a traditional mortgage and one of the greatest hurdles that aspiring homeowners must overcome. In dollar terms, a prospective homeowner would need to come up with $70,000 for a home costing $350,000, an amount that is unattainable for many.

Governor Albert Bryan told the Consortium Sunday that the program would be similar to what's being offered by Bank of America in 21 states. "We are essentially providing the down payment through programs we are running now. We have some more housing program announcements coming out this month," he said.

The Bank of America offering takes advantage of the Community Affordable Loan Solution. It requires no mortgage insurance or minimum credit score, and instead uses credit guidelines based on factors like rent, utility, phone, and auto-insurance payments, according to Business Insider. Borrowers must complete a homebuyer certification course before applying to qualify.