mortgage on average to get approved in Puerto Rico

Hi I’ve been waiting on getting approval of a bank mortgage for a condo from a major bank in Puerto Rico since mid-November.

My question is, how long on average does it take to get approval in Puerto Rico? I over heard one person in Luquiilo say he was waiting 6 months on a condo. I did not believe it.

I understand things are slower, the holidays are longer and now the earthquakes but it’s business. So what has been your experience?

I don’t know if this makes a difference but the condo is in Palmas Del Mar and it’s developer owned.

Thank you

In an ideal situation on avg it shouldn't take more than 45-60 days for condo financing  but there are a number of factors that come into play.  I'll list a few of them here.

1. Communication between the bank and the condo administration contact must be solid.  In most cases the bank needs to have a form completed that outlines specific details about the complex you are purchasing in  to determine what type of financing if any is available.   You'll want to check with your bank rep if this process has been completed.

2.  Insurance.  In PR most condo complexes have to renew their insurance policies annually ( as  a comparison  to mainland US where they renew every 2-3 years). Ever since Hurricane Maria it has become increasingly difficult for many complexes to secure insurance  that is acceptable for banks...especially if they are located in a flood zone.  Your bank needs to get all of the details of the master policy and if your complex is in the window of time right before their current policy expires and they have not decided who they are going to move forward with for the next year or there is difficulty getting all of documents on the current policy from the agent this could also lead to a major delay.

3. How much you are putting down plays a role. If you are putting less than 20% down then mortgage insurance is needed ( in most cases). This requires another set of eyes to review the file at the ONE Mortgage insurance company in PR.  There are a lot of guidelines that have to be adhered to so it can take some time on occasion to get the approval from this entity.

Those are just a few examples of what could lead to extended delays. I really only pointed out a few that are directly tied to condos but ultimately it could be a number of other things or quite simply a bad bank rep.  Its best to check with him or her and hopefully they can give you some sense of what  the issue is because unless there is a serious legal/ title issue it should not have taken as long as it has to close.

Thank you. The time frame you stated is about what is expected on the mainland. I was told it was longer in PR.  The other issues you pointed are not surprising and I would agree.  Thank you maybe I will get the approval soon.

60-90 days is common, I suggest you check with the lending institution to see what the holdup is, there could be a problem with the paperwork or maybe somebody dropped the ball and it is collecting dust in somebody’s desk. If not satisfied you may need to discuss with another lending institution.

New topic