Buying your first home in Puerto Rico

Before you look at a single listing

Almost everyone does this backwards: they browse properties for months, fall in love with one, and only then find out what they can borrow. That is how people waste a year.

Start with the money. Check your credit, add up your monthly debts, and talk to a lender. Two afternoons of work tells you which properties are real for you and which are daydreams.

The order of operations

• 1. Check your credit and fix what you can.
• 2. Get pre-approved. Now you know your ceiling.
• 3. Set your real budget: mortgage plus insurance plus CRIM plus maintenance — not just the mortgage.
• 4. Search. Filter by what you can afford, not by what you like.
• 5. Visit. Photos lie about humidity, noise and the state of the neighborhood.
• 6. Make an offer through your agent.
• 7. Inspection. Never skip it, especially on an as-is sale.
• 8. Title study through a notary-attorney.
• 9. Close and record the deed.

Help that exists for first-time buyers

FHA loans allow a down payment as low as 3.5% with a moderate credit score, which is why most first purchases here use them. If you served, the VA loan is better. Outside the metro area, check USDA eligibility — it may mean no down payment at all.

Puerto Rico also runs down-payment assistance programs through the AFV. Availability and funding change, so confirm current terms directly with the agency rather than trusting an article, including this one.

The mistake that costs the most

Buying at the absolute top of what the bank will lend. Lenders approve you on ratios; they do not know your car is old or that your roof will need work in three years.

Leave margin. A house you can comfortably afford at 80% of your maximum is a home. One at 100% is a source of anxiety every time something breaks.