Blog Virgin Islands Real Estate News

What A Realtor Can Do For A Potential Buyer

By Jennie Rosenberg
9/28 2011

There are many sites and tools on the internet to assist homebuyers in the preliminary work to find homes for sale and to research information on neighborhoods and recent sales. But buyers often use real-estate agents to identify long-term value in properties, negotiate prices and ensure that deals go through.

First and foremost, a real estate agent can assist buyers in developing a scene of what they are truly looking for in a new home.  An experienced real estate agent will get to know their customer and pick up on hidden signals that buyers show when seeing a home.  And on the flip side, a good agent will also develop an understanding of what a buyer doesn’t want.  This is an invaluable skill because is streamlines the process of looking and saves both the agent and the buyer time and frustration.

Once you and your agent have found the “right” home, your agent can assist in negotiating the transaction and bringing that transaction to the closing table.  An effective agent should be able to educate the customer about the local market in order to negotiate the best deal.  This includes giving the buyer information about comparable homes that have sold, how many days a home has been on the market (DOM), as well as information about what is not selling.  Of course, it is up to the buyer to make the end decisions as to the terms of the sale, but a good agent will have giving them the right information to make informed decisions.

Real-estate agents can also point out potential issues that could affect the resale price of a home and suggest small changes to increase the home’s value.  Your will not only assist you in finding your home and negotiating terms, but they will be there with the buyer through the entire process, which ranges from home inspection and appraisal to the actual closing.

While real-estate agents are instrumental in assisting buyers through a successful transaction, there are some things they cannot do.

Fair-housing laws prohibit discrimination, an agent cannot steer a client to or away from particular neighborhoods based on their knowledge of an area’s demographics. Additionally, agents cannot explicitly describe a neighborhood based on racial, religious, age or other demographic information.

It is important to remember that agents are not lawyers, home inspectors, mold experts, nor financial or tax advisers. The buyer should rely on professionals or experts in these areas and make decisions based on information presented by these other professionals as well.

 For more information about buying, selling and/or leasing property in the USVI, please contact Jennie Rosenberg at jennie@seaglassproperties.com or 340.690.4903.

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Loan Appliction Process – What You’ll Need

By Jennie Rosenberg
9/26 2011

So you’ve been working with your real estate agent and together you’ve found the home of your dreams.  So now what?  Contacting your financial institution to begin the loan application process.  However, you’ll want to gather some important documents before your appointment with the loan officer such as; 2 valid government issued ID’s, 2 recent paystubs, along with last year’s tax return with W2, copy of the fully executed contract of sale, and your most recent bank statements.

Before you even begin your home search, it’s a good idea to take some preliminary steps in order to ensure your best chances at securing financing.  First, make sure you maintain a minimum credit score of 620, maintain sufficient cash reserves to cover your down payment and closing costs, maintain a debt to income ratio of no more than 45%.

In addition, it’s always a good idea to speak with your financial institution before you start your home search to determine how much how you can actually afford.  This saves you and your real estate agent a lot of time and potential frustration.

For more information about buying, selling and/or leasing property in the USVI, please contact Jennie Rosenberg at 340.690.4903 or jennie@seaglassproperties.com.

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Decorating With A Neutral Palette

By Jennie Rosenberg
9/20 2011

I remember the first time I got off a plane in St. Thomas. The beautiful colors and warm humid breezes the Wow and the AHH of that has never left me! After nearly a decade of residency on St. Thomas I still love waking up to big beautiful ocean views and warm breezes. Whether you are redecorating your current home, personalizing a new home, or freshening up in preparation for selling your home; consider putting the focus on the outdoor elements. A great way to let the lush outdoors take center stage is to keep the interior of your home very neutral. It can be a challenge to commit to a narrow palette of neutrals but don’t forget that it will allow the beautiful views to take center stage as a large painting would in your home. Decorating entirely with neutral colors can create a space that is soothing, sophisticated, and warm. Tips to help your neutral palette shine:

 1. Mix different shades and tones of neutrals to add depth.

2. Use lots of different textures and materials. Mix wood, plush ultra suede, slubby linen, accent basket.

3. Accent with small pops of favorite colors. It’s fun and easy to change these every season!

4. Choose fabrics that are easy to clean.

5. Don’t forget to add pattern. When you have a narrow color palette choosing a bold geometric pattern for the rug or draperies can bring life to the room.

Submitted by Tiffany Cassidy owner of Lagnappe, 6501 Red Hook Plaza, Suite 201, St. Thomas, VI 00802, 340.774.4304 (Voice), 340.643.7289 (Cell), 954.282.1926 (Fax).  For more details about Lagnappe, please visit www.lagnappe.com.

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Dolphin Cove: St. Thomas’ Premiere Waterfront Development Property

By Jennie Rosenberg
9/19 2011

Last week Team Sea Glass had the opportunity to visit the historic Dolphin House located within the confines of the Dolphin Cove development land.  This home was used by scientists who trained dolphins to search for underwater mines during the cold war.  The structure and saltwater pool used to interact with the dolphins remain intact.  There are plans to remodel the structure to serve as the community clubhouse, which will sport a glass floor so that the saltwater dolphin pool can be viewed.

 The proposed Dolphin Cove development is planned to have 4 oceanfront bungalows and approximately 86 villas and luxury flats. The community will feature two beaches with excellent swimming and snorkeling. The common area will also include tennis courts, fresh and salt water swimming pools, a myriad of hiking trails, restaurant and fitness center. Water sport amenities will be available at the beaches.  Dolphin Cove will be a self-sufficient community, offering its own security, water treatment plant and standby generator.

Two acres of the 19.5 acre property have been dedicated as a wildlife habitat for the endangered Virgin Islands tree boa. The Virgin Islands Tree Boa is a light brown snake with chestnut blotches. Young tree boas are light grey with black blotches and their color changes as they mature. Like most boas, the Virgin Islands tree boa is nocturnal and spends the day under rocks and logs. This snake, native to St. Thomas, is currently endangered and received federal protection in 1979.  The VI Tree boa has also been found on Virgin Gorda, Tortola, and other low profile cays of Puerto Rico. They live in dry habitats such as scrub-woodlands or subtropical dry forests. The tree boa is smaller than most boas, lives up to 25 years and grows up to 4 feet.

Team Sea Glass was lucky enough to spot one of these elusive snakes on our trek to view on of Dolphin Coves spectacular beaches!

Click here for more information about this premier development opportunity.

For more information on buying, selling and/or leasing property in the USVI, please contact Jennie Rosenberg at jennie@seaglassproperties.com, or 340.690.4903.

 

 

 

 

 

 

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Join Our Mailing List

8/26 2011

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USVI Bank and Relo Properties

8/26 2011

Searching for property in the US Virgin Islands can be tough. Since many of the banks require a minimum down payment of 20% foreclosures are few and far between. So when a new listing comes up, there is a good chance it won’t last long. While some of the properties on this list are bank owned due to a foreclosure sale, not all of them are. Foreclosure is not the only way that a bank can end up with a property on its books. With that said all of these listings are on the Multiple Listing Service, and many of them are listed by real estate agencies other than Sea Glass Properties. As a full service Real Estate Firm operating on all three US Virgin Islands we are able to assist in the purchase of any of the following listings. If you have any interest in any of these properties please let us know. You can also check out:

Don’t Judge a GREAT DEAL by its Owner for more great buys.
RELOCATION:

HUGE PRICE DROP on this meticulously maintained home with two bedrooms in main house and two on lower level, accessed from exterior stairs. Granite counters, vessel sinks. Wonderful touches! Carport, solar hot water, low-flush toilets, lush grounds, flat access to home. Very private home with spectacular down-island views. Centrally located! Poured concrete. Hurricane shutters throughout. $575,000. Make an offer.
http://www.seaglassproperties.com/st-thomas/great-northside/stt/11-1029
Virgin Island’s BANK OWNED PROPERTIES
Residential:

Bank Foreclosure. Great potential with this 3 bedroom fixer upper. Lot behind house also for sale. Property is sold as is/where is and with all faults. $62,500
http://www.seaglassproperties.com/st-croix/prince/stt/10-1844

Bank owned. Fixer upper needs lots of work but has potential. Centrally located, paved road. 2 bed unit + 1 bed unit. Construction loan needed or cash. Dogs next door are chained. Property sold as is/where is and with all faults. $65,000
http://www.seaglassproperties.com/st-croix/queen/stt/11-1384

Bank foreclosure. 3 bedroom, 2 bath. Very large townhouse with oversize kitchen waiting to be designed from scratch. Includes separate efficiency guest house and storage shed. $97,000
http://www.seaglassproperties.com/st-croix/king/stt/11-933

NEW LISTING: Bank owned property. New on the market. Close to beach and shopping. House needs work. Property sold as is and with all faults and defects whether latent or apparent. Buyer pays VI Stamp Tax.
http://www.seaglassproperties.com/st-croix/company/stt/11-1391

Bank Foreclosure. 4 bedroom 2.5 bath. Great value in wonderful neighborhood. Nice family home with newly paved road. House needs work – with TLC, this home can sparkle. Property sold as is and with all faults and defects whether latent or apparent. $145,000
http://www.seaglassproperties.com/st-croix/west-end/stt/11-934

3 bedroom, 2 bath. Needs work! Needs new bathroom, needs floor tiles, extra room needs to be finished, no appliances. Inside needs cleaning. Please include this language in any contract: ”Property to be conveyed ”as is” and conveyed via a Special Warranty Deed or Marshall’s Deed”. $149,000
http://www.seaglassproperties.com/st-croix/company/stt/11-398

NEW LISTING: Bank owned. 3 bed, 2 bath. Convenient location close to Christiansted. Property sold ”as is/where is with all faults”. BUYER pays stamp tax. $220,000
http://www.seaglassproperties.com/st-croix/east-end-a-/stt/11-1388

Gracious 2500+ sf poured concrete home with Great Room. Three spacious bedrooms, 2-1/2 baths. Enjoy outdoor living on the covered gallery overlooking pool. Prestige gated community with beaches. Former owner paid $749,000 plus added generator and storm shutters. Pool, appliances, and equipment As Is. $554,000
http://www.seaglassproperties.com/st-croix/queen/stt/10-1835

Gracious 3 bedroom 2-1/2 bath concrete home with Great Room. Enjoy outdoor living on the covered gallery overlooking pool. Former owner paid $749,000 plus added generator & storm shutters. Upscale gated residential community with beaches. Appliances & equipment As Is. $569,000
http://www.seaglassproperties.com/st-croix/queen/stt/10-1837

Fabulous views of Buck Island & Green Cay. 3 bedroom 2 bath main house, plus 2 br 1 ba apartment, plus 1 bedroom guest house. 2 car garage. Walking distance to one of St. Croix’s best beaches. Strong construction. Palm trees & flowering tropical plants. Former owner paid $900,000. Your chance to own prestige property at excellent price. Appliances & equipment ”as is”. $759,000
http://www.seaglassproperties.com/st-croix/east-end-a-/stt/10-1831

Wow what a view! Fabulous custom built home with so many extras (see Special Features in attachments). 4 bedrooms 4 bath house overlooking the Caribbean. Incredible views to north shore and Yacht Club. Master suite includes private garden with hot tub. Cypress ceilings, maple kitchen, pool, spacious pool deck plus apt and bonus rooms. Note: House needs TLC. $945,000
http://www.seaglassproperties.com/st-croix/east-end-b-/stt/11-252

Live in one bedroom home while you complete main house and 3 other structures. Definitely a handy man special. Nice flat lot, easy to build. $250,000
http://www.seaglassproperties.com/st-john/coral-bay/stt/10-1687

Land:
Bank foreclosure. Flat lot in quiet neighborhood. Property is sold as is/where is and with all faults. $16,500
http://www.seaglassproperties.com/st-croix/prince/stt/10-1845

NEW LISTING: Excellent (0.46 acre) building site in up and coming community. Terrific buy $24,900
http://www.seaglassproperties.com/st-croix/prince/stt/11-1351

Large (0.46 acre) lot fronting on Melvin Evans Highway on the western boundary of Enfield Green. Great Price! $25,000
http://www.seaglassproperties.com/st-croix/west-end/stt/10-1477

NEW LISTING: 3 Lots TOTAL. Lots can be bought individually or as one estate-size parcel. Outstanding island views! Enjoy the proximity to schools and beaches. Path has been cut to viewing area.
http://www.seaglassproperties.com/st-croix/queen/stt/11-885

http://www.seaglassproperties.com/st-croix/queen/stt/11-886

http://www.seaglassproperties.com/st-croix/queen/stt/11-887

Sydney’s Fancy; an upscale sub-division w/ gated entry, cameras, concrete roads, underground utilities common area landscaping and maintenance. The views from this parcel are of Magen’s Bay, the beach & beyond. Million $ water views and sounds of the waves on Magen’s Bay. 125′ road frontage. See MLS #11-735 which is the contiguous parcel 11-13. Purchase both for discount! $179,900.
http://www.seaglassproperties.com/st-thomas/great-northside/stt/11-731

Sydney’s Fancy; an upscale sub-division w/ gated entry, cameras, concrete roads, underground utilities, common area landscaping & maintenance. The views from this parcel are of Magen’s Bay, the beach & beyond. Million $ water views and sound of the waves on Magen’s Beach. Rectangular parcel w/ 192′ of road frontage. See contiguous parcel 11-12 MLS#11-731, purchase both for discount $179,900.
http://www.seaglassproperties.com/st-thomas/great-northside/stt/11-735

Gentle, moderate sloping lot. Gated community. Nice view great breezes. Overlooks West End Hotel $299,000.
http://www.seaglassproperties.com/st-john/cruz-bay/stt/10-1686

NEW LISTING: A Rare Find – 22 acres of historic estate in the rain forest. Needs major TLC. 1 Spring Garden has a 5 BR/3BA (5180 sq.ft.) masonry house w/guest cottage on 5.17 ac. Plot 2 consists of 16.7 ac. with 2 historic sugar mills, 3 artesian wells and a 55,000 gal. water storage tank. Parcel 3 has 1600 sq.ft. historic structure on 0.11 acres. A Garden of Eden – fruit trees, saman, tibet, etc. $995,000
http://www.seaglassproperties.com/st-croix/northside-a-/stt/11-1348

Commercial:
Terrific Investment Opportunity! Formerly Caledonia Springs, this property has an underground spring that is tapped for selling bottled water. All equipment included for processing and purifying of water for distribution. Close to transportation, Post Office and Villa La Reine Shopping Center. $499,500
http://www.seaglassproperties.com/st-croix/king/stt/11-1350


Last Month’s Hot Deals:
http://www.seaglassproperties.com/blog/2011/07/virgin-islands-bank-owned-properties/

June’s Hot Deals:
http://www.seaglassproperties.com/blog/2011/06/hot-deals-of-the-week-featuring-bank-owned-and-foreclosure-property/

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Don’t Judge a GREAT DEAL by its Owner

8/26 2011

There are currently over 2,100 listings between the St. Thomas/St. Croix and St. John multiple listing services. Of those, only 23 are Bank Owned. Approximately 25% of those owned by the banks were NOT foreclosed on. This means that less than 1% of the properties listed in the USVI are Bank Owned.

There are many indicators that can determine what is and what isn’t a GREAT DEAL. When I worked with investors from California purchasing distressed properties to be rehabbed and sold again within a set time frame, we always started with a % of market value.

Example: Property A is listed at $80,000. The comparable listings in the neighborhood are selling for $100,000.

The next most important attribute is going to be HIGHEST and BEST USE. Commercial property is limited in the Virgin Islands, so when a property comes at that will allow for commercial use, we typically give this property a higher value.

Finally, depending on the location, I personally give waterfront properties a higher value than its comparable hill-side home.

I believe these properties are worth taking a closer look at:

St. Thomas USVI


Hands down the lowest priced waterfront villa in Peterborg, this could be regarded as the “DEAL OF THE YEAR”. If you are looking for a long-term hold that can act as an income generating property or a vacation villa, then look no further.
http://www.seaglassproperties.com/st-thomas/great-northside/stt/11-1149

UNDER $400K: We head out to Fortuna on the West End of St. Thomas for our best priced deal under $400,000. This 3/2 bath home sits waterfront and may be a great opportunity for the handy-man. This property has the feel of a cottage, but because the price has been dropped so low, it is worth at least taking a closer look at.
http://www.seaglassproperties.com/st-thomas/west-end/stt/10-683 


MY PERSONAL FAVORITE – Over $2 million: This property may not currently meet my investment standards for a short term buy and sell, but it definitely stands out as a long-term buy and hold. This 5 bed, 5.5 bath has been reduced from $6.5 million to $3.9 million and I have been told that these owners are ready to make a deal. This was one of my favorite homes on the market when it was priced at $4.5 million. I believe this is luxury at its finest and would highly recommend that if you are in the market for gorgeous vacation residence or a high end villa rental property that you take a closer look!
http://www.seaglassproperties.com/st-thomas/great-northside/stt/11-1174

St. John USVI

My St. John Favorite: I have been working with one of my Buyers for over 3 years looking for that perfect vacation home. While we haven’t yet found it, I have come across some pretty amazing properties. For homes priced under $3 million on St. John this is one of my absolute favorites, especially since it is waterfront.
http://www.seaglassproperties.com/st-john/coral-bay/stj/11-195

Have you ever thought about owning a business in Paradise? If so you should definitely consider Cruz Bay on St. John. Here is a successful scooter rental business in prime location at Wharfside Village.
http://www.seaglassproperties.com/st-john/cruz-bay/stj/10-327


Private Island Living: I have no clue if this is a DEAL OF THE YEAR, but how cool would it be to live on Lovango Cay and build your dream house on this ideally graded homesite with panoramic views over St. John’s pristine National Park, several white sand beaches, Cruz Bay and the whole of Pillsbury Sound and the lights of St. Thomas at night.
http://www.seaglassproperties.com/st-john/cruz-bay/stj/07-132

St. Croix USVI


(Above is a picture of what this place used to be:)
Wow. After walking this property I couldn’t believe what I saw. Once upon a time this was the place for celebrities on St. Croix. The old CARLTON HOTEL truly is a site to see. Image a corporate retreat or another hotel or…?
http://www.seaglassproperties.com/st-croix/west-end/stt/11-636 


Best Deal on St. Croix: Appraised earlier this year at $1.2 million this home is a must have. This spacious 4 BR/4 BA house w/pool is finished with chef’s kitchen, granite counters and much, much more.
http://www.seaglassproperties.com/st-croix/east-end-b-/stt/10-1431

Christiansted Business Opportunity: Are you thinking about relocation to St. Croix but are not sure what to do? Why not buy a small business? This is one of the best price businesses on island and being that I frequent this place multiple times a week, I’d highly recommend at least considering the opportunity.
http://www.seaglassproperties.com/st-croix/christiansted/stt/09-113

 

Check out our Bank and Relo Owned Property List

 

Please note, not all of these properties are listed by Sea Glass Properties. This list is compiled based on the personal opinion of Nick Vanassche, a licensed real estate agent with Sea Glass Properties. Prices are subject to change and listings may be sold or expire at anytime.

 

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Virgin Islands Bank Owned Properties

7/18 2011

Residential:
Bank Foreclosure. Great potential with this 3 bedroom fixer upper. Lot behind house also for sale. Property is sold as is/where is and with all faults. $62,500
http://www.seaglassproperties.com/st-croix/prince/stt/10-1844

Bank foreclosure. 3 bedroom, 2 bath. Very large townhouse with oversize kitchen waiting to be designed from scratch. Includes separate efficiency guest house and storage shed. $97,000
http://www.seaglassproperties.com/st-croix/king/stt/11-933

Bank Foreclosure. 4 bedroom 2.5 bath. Great value in wonderful neighborhood. Nice family home with newly paved road. House needs work – with TLC, this home can sparkle. Property sold as is and with all faults and defects whether latent or apparent. $145,000
http://www.seaglassproperties.com/st-croix/west-end/stt/11-934

3 bedroom, 2 bath. Needs work! Needs new bathroom, needs floor tiles, extra room needs to be finished, no appliances. Inside needs cleaning. Please include this language in any contract: ”Property to be conveyed ”as is” and conveyed via a Special Warranty Deed or Marshall’s Deed”. $149,000
http://www.seaglassproperties.com/st-croix/company/stt/11-398

Gracious 2500+ sf poured concrete home with Great Room. Three spacious bedrooms, 2-1/2 baths. Enjoy outdoor living on the covered gallery overlooking pool. Prestige gated community with beaches. Former owner paid $749,000 plus added generator and storm shutters. Pool, appliances, and equipment As Is. $554,000
http://www.seaglassproperties.com/st-croix/queen/stt/10-1835

Gracious 3 bedroom 2-1/2 bath concrete home with Great Room. Enjoy outdoor living on the covered gallery overlooking pool. Former owner paid $749,000 plus added generator & storm shutters. Upscale gated residential community with beaches. Appliances & equipment As Is. $569,000
http://www.seaglassproperties.com/st-croix/queen/stt/10-1837

Fabulous views of Buck Island & Green Cay. 3 bedroom 2 bath main house, plus 2 br 1 ba apartment, plus 1 bedroom guest house. 2 car garage. Walking distance to one of St. Croix’s best beaches. Strong construction. Palm trees & flowering tropical plants. Former owner paid $900,000. Your chance to own prestige property at excellent price. Appliances & equipment ”as is”. $759,000
http://www.seaglassproperties.com/st-croix/east-end-a-/stt/10-1831

Wow what a view! Fabulous custom built home with so many extras (see Special Features in attachments). 4 bedrooms 4 bath house overlooking the Caribbean. Incredible views to north shore and Yacht Club. Master suite includes private garden with hot tub. Cypress ceilings, maple kitchen, pool, spacious pool deck plus apt and bonus rooms. Note: House needs TLC. $945,000
http://www.seaglassproperties.com/st-croix/east-end-b-/stt/11-252

Live in one bedroom home while you complete main house and 3 other structures. Definitely a handy man special. Nice flat lot, easy to build. $250,000
http://www.seaglassproperties.com/st-john/coral-bay/stt/10-1687

Land:
Bank foreclosure. Flat lot in quiet neighborhood. Property is sold as is/where is and with all faults. $16,500
http://www.seaglassproperties.com/st-croix/prince/stt/10-1845

Large (0.46 acre) lot fronting on Melvin Evans Highway on the western boundary of Enfield Green. Great Price! $25,000
http://www.seaglassproperties.com/st-croix/west-end/stt/10-1477

Choice building lot with panoramic view of Great Pond Bay and beyond. Gradual slope up from the road provides perfect building site. Quiet neighborhood. $40,500
http://www.seaglassproperties.com/st-croix/east-end-a-/stt/11-203

Sydney’s Fancy; an upscale sub-division w/ gated entry, cameras, concrete roads, underground utilities common area landscaping and maintenance. The views from this parcel are of Magen’s Bay, the beach & beyond. Million $ water views and sounds of the waves on Magen’s Bay. 125′ road frontage. See MLS #11-735 which is the contiguous parcel 11-13. Purchase both for discount! $179,900.
http://www.seaglassproperties.com/st-thomas/great-northside/stt/11-731

Sydney’s Fancy; an upscale sub-division w/ gated entry, cameras, concrete roads, underground utilities, common area landscaping & maintenance. The views from this parcel are of Magen’s Bay, the beach & beyond. Million $ water views and sound of the waves on Magen’s Beach. Rectangular parcel w/ 192′ of road frontage. See contiguous parcel 11-12 MLS#11-731, purchase both for discount $179,900.
http://www.seaglassproperties.com/st-thomas/great-northside/stt/11-735

Gentle, moderate sloping lot. Gated community. Nice view great breezes. Overlooks West End Hotel $299,000.
http://www.seaglassproperties.com/st-john/cruz-bay/stt/10-1686

Last Month’s Hot Deals:
http://www.seaglassproperties.com/blog/2011/06/hot-deals-of-the-week-featuring-bank-owned-and-foreclosure-property/

 

*Listings pulled from MLS. Prices subject to change.

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How Much House Can You Afford

By Jennie Rosenberg
7/8 2011

Before you start touring homes for sale, it’s important to start off with a budget so you know how much you can afford to spend. Knowing what mortgage payment you can handle will also help you narrow the field so you don’t waste precious time touring homes that are out of your reach.

Where to begin

The key factor in figuring how much home you can afford is your debt-to-income ratio. This is the figure lenders use to determine how much mortgage debt you can handle, and thus the maximum loan amount you will be offered. The ratio is based on how much personal debt you are carrying in relation to how much you earn, and it’s expressed as a percentage.

The ideal ratio

Mortgage lenders generally use a ratio of 36 percent as the guideline for how high your debt-to-income ratio should be. A ratio above 36 percent is seen as risky, and the lender will likely either deny the loan or charge a higher interest rate. Another good guideline is that no more than 28 percent of your gross monthly income goes to housing expenses.

Doing the math

First, figure out how much total debt you (and your spouse, if applicable) can carry with a 36 percent ratio. To do this, multiply your monthly gross income (your total income before taxes and other expenses such as health care) by .36. For example, if your gross income is $6,500:

  $6,500 (Gross monthly income)
x .36 (Debt-to-income ratio)
= $2,340 (Total allowable monthly debt payments)

 

Next, add up all your family’s fixed monthly debt expenses, such as car payments, your minimum credit card payments, student loans and any other regular debt payments. (Include monthly child support, but not bills such as groceries or utilities.)

  Minimum monthly credit card payments*: ____________
+ Monthly car loan payments: ____________
+ Other monthly debt payments: ____________
= Total monthly debt payments: ____________

 

*Your minimum credit card payment is not your total balance every month. It is your required minimum payment — usually between two and three percent of the outstanding balance.

To continue with the above example, let’s assume your total monthly debt payments come to $750. You would then subtract $750 from your total allowable monthly debt payments to calculate your maximum monthly mortgage payment:

  $2,340 (Total allowable monthly debt payments)
- $750 (Total monthly debt payments other than mortgage)
= $1,590 (Maximum mortgage payment)

 

In this example, the most you could afford for a home would be $1,590 per month. And keep in mind that this number includes private mortgage insurance, homeowner’s insurance and property taxes. To determine the price of home you can afford based on this amount, use a home affordability calculator.

Exceptions to the 36 percent rule

In regions with higher home prices, it may be hard to stay within the 36 percent guideline. There are lenders that allow a debt-to-income ratio as high as 45 percent. In addition, some mortgage programs, such as Federal Housing Authority mortgages and Veterans Administration mortgages, allow a ratio higher than 36 percent. But keep in mind that a higher ratio may increase your interest rate, so you may be better off in the long run with a less expensive home. It’s also important to try to pay down as much debt as possible before you begin looking for a mortgage, as that can help lower your debt-to-income ratio.

For more information on buying, selling and/or leasing please contact Jennie Rosenberg at jennie@seaglassproperties.com or 340.690.4903.

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HOT DEALS OF THE WEEK!!

By Jennie Rosenberg
7/7 2011

Make your dream of owning a home in America’s Paradise a reality, schedule a showing today!

1. MLS# 11-540, Judith’s Fancy, STX, $795,000 2/2 Updated with Dramatic Views

2. MLS# 11-755, Jolly Hill, STX, $495,000 3/2 New Construction with Sea Views

3. MLS# 11-426, Solberg, STT, $750,000 4/3 Double Views with Pool

4. MLS# 11-432, Mandahl, STT, $499,000, 3/2 Renovated/Large Lot with Room for Pool

5. MLS# 11-10, Pinnacle, STT, $625,000, 2/2/5 Gated Townhouse w/ Harbour Views

6. MLS# 11-950, Dorthea, STT, $699,000, 4/4 Rare Water Well and Stream

7. MLS# 11-995, Altona, STT, $150,000, 2/2 Finish Building Your Dream Home

8. MLS# 11-551, Teagues Bay, STX, $375,000, 2/2 Above the Yacht Club

9. MLS# 11-163, Carolina, STJ, $549,000, 1/2 “Blue Caribe” Charming Short Term Rental

10. MLS# 10-138, Bethany, STJ, $649,000, 2/2 Two Unit Condo

UPDATES AND PREVIOUS HOT DEALS!

PENDING: MLS# 11-994, Upper John Dunko, $120,000 1/1 Handyman Special

PRICE REDUCED! MLS# 10-961, Mahogany Run, STT, $449,000, 2/2 Condo

PRICE REDUCED! MLS# 11-796, Wintberg, STT, $599,000, 4/2 Charming & Updated

PRICE REDUCED! MLS# 11-1029, St. Jo & Ro, STT, $600,000 4/4 Room for a Pool

For more information on buying, selling and/or leasing property in the USVI, please contact Jennie Rosenberg at jennie@seaglassproperties.com or 340.690.4903.

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