Own a Lot, Build a Home First-Time Homebuyer Program

Are you a first-time homeowner looking to build your dream home on your own property?

The Virgin Islands Office of Disaster Recovery is excited to offer the Own a Lot, Build a Home Program, a new territorial lending initiative designed to help you achieve that dream.

Program Summary

The “Own a Lot, Build a Home” Program is a territorial lending initiative designed for first-time homeowners that will provide five (5) year, zero percent (0%) forgivable mortgages for the construction of a new single-family dwelling. This program targets moderate income-eligible clients whose household incomes are based on 120% area median income for the CDBG-DR Housing Programs. The Program will work in collaboration with participating lending institutions to provide secondary financing based on the lesser of 50% of construction cost or the appraised value.

What does the program offer?

This Program supports eligible applicants with a grant to provide secondary financing to build a first home on undeveloped land owned by the applicant. Financial support is provided for the construction of a single-family home on your existing undeveloped property/land. Qualified applicants may be eligible for a 0% interest forgivable loan (grant) tailored to meet their specific financial needs. This funding is secured with a second lien and forgiven on an amortized basis over a 5-year affordability period. The borrower’s investment will be driven by the equity included in the land owned and the applicable closing cost. The program may pay for closing costs as needed.

What do we mean by undeveloped property/land?

Undeveloped property/land that has not been previously built upon. This type of land is in its natural state, free from any construction and infrastructure.

What are the other property requirements?

Each property must have
- been acquired through a valid deed
- no substantial adverse environmental factors
Each property must not
- be in a regulatory floodway or a designated Coastal Barrier Resource Area
- inspected and appraised

*Environmental reviews will be conducted as part of the property eligibility reviews. Environmental reviews shall be completed prior to determining the award to be offered to an eligible applicant.

Why is this program being offered?

Recognizing the unique challenges of constructing homes in the Virgin Islands—such as limited buildable land and high construction costs.

How is this program being funded?

The program uses Community Development Block Grant-Disaster Recovery (CDBG-DR) funds to subsidize these expenses.

Do I qualify?

All Applicants must:

Be a U.S. citizen or permanent resident and a resident of the Virgin Islands for the last three years
>Be a first-time homebuyer or have not owned a home in the last three years
>Attend a homebuyer education course and earn a certificate of completion
>Meet established income requirements, income limits are based on the annual limits published by HUD for the CDBG-DR Program.

Gross Household income of all members aged (18) eighteen and over shall not exceed the 120% income limits based on the number of persons in the household, as defined by HUD for the CDBG DR programs in the US Virgin Islands. For example, a family 5 that consists of 3 minors and 2 adults, household income should not exceed $149,450.

*For more information on HUD income limits click HERE.*

What are the mandatory requirements, details and clauses?

Primary Residence Requirement: To benefit from the program, homeowners must occupy the property as their primary residence throughout the affordability period.
Undeveloped Land: The applicant must own an undeveloped appropriately sized piece of land.
Gradual Forgiveness: The balance of the grant will be forgiven or reduced at a rate of one-fifth (1/5) of the principal amount for each completed year of residency.
Meet Underwriting Criteria: Applicants must meet all underwriting criteria for the program.
Recapture Clause: If the property is sold, transferred, or is no longer the homeowner’s primary residence during the affordability period, ODR will recapture a portion of the remaining balance of the loan.

How do I apply?

Complete a Program Application: Apply to a participating lending institution.
Provide Required Documentation: Ensure all necessary documentation is included with the application.
Eligibility Review: Applications will be thoroughly reviewed by the lending institution and ODR to ensure eligibility.

*Applicants must select a contractor who is registered on the SAM.gov website and has obtained their UEI number. Interested contractors can find more information HERE.*

Printable information on the program can be found HERE in English and HERE in Spanish.