FAQ’s

• VI Slice is a new program that establishes secondary gap financing for first-time eligible moderate-income households purchasing or constructing a home.
• This program is designed to establish opportunities which may increase homeownership rates amongst moderate-income households here in the U.S. Virgin Islands. Applicant must be a first-time homeowner.
• The program will also support long-term sustainability, resiliency, and economic viability across the territory by providing financial assistance to expand affordable homeownership opportunities.

• Gap financing assistance will provide supplemental funding to clients in an effort of bridging the "Gap" between the overall project cost and the amount secured through a primary lender.

• VI Slice Program (Aggregate): $200,000
• Maximum Amount Down Payment and Closing Cost: $100,000

• This program is for moderate-income households who qualify for a mortgage, will be first-time homeowners, and will reside in the USVI (specifically in the home that will be financed through the VI Slice program) for at least 10 years.

• A first-time homeowner is defined as an individual who has had no ownership in a principal residence during the 3-year period ending on he date of purchase/construction of the property.

1. Complete VIHFA’s Homebuyer Education Program and earn a Homebuyer Education Certificate of Completion.
2. Find a home to purchase or have a home construction project to finance.
3. Go to a participating bank or mortgage company (“financing entity)”to apply for a - mortgage on the home or home construction project.
4. The financing entity will then qualify you for a specific amount.
5. If you qualify, but experience a shortfall in the down payment or project cost, the financing entity will refer your mortgage application package to the VIEDA.
6. The VIEDA will review the financing entity’s documents for program eligibility and approval of “gap” amount.
7. If approved, the financing entity will approve its mortgage amount with the “gap” financing amount from the VIEDA and place a first mortgage lien on the property for its loan amount at closing.
8. A soft second mortgage will be placed for the VIEDA’s ‘gap’ amount on the property at closing.
9. The VIEDA second mortgage for the ‘gap’ amount will turn into a grant, and be released after 10 years providing the mortgagee(s) maintained the property as their primary residence for the 10-year period.
10. There is no payment on the gap amount financed providing the mortgagee(s) maintained the property as their primary residence for the 10-year period.
11. The property must be occupied by the homeowner and remain as the homeowner’s primary residence for a minimum period of ten (10) years. If the homeowner does not occupy the property for the full 10-year period, the gap amount would have to be repaid by the homeowner.

Example: If you have a shortfall of $20,000 (gap amount) for the down payment on a home, the financing entity will refer your mortgage loan application package for the VIEDA’s review and approval of the gap amount. If approved, the VIEDA will provide the $20,000 gap amount to the financing entity at closing to complete the mortgage transaction.

• V.I. Slice was started through a collaboration with the Office of the Governor, Office of Disaster Recovery, and the Virgin Islands Economic Development Authority in partnership with local banking institutions and mortgage companies. Funding for this program derives from the American Rescue Plan Act (ARPA).

• This program was launched on October 20, 2022.

• Deadline to be determined based on availability of funds.

• VI Slice will last until funding is depleted.

• VIHFA program is for low-income homeowners, whereas VI Slice is for moderate income homeowners. VI Slice also allows for the inclusion of up to two (2) rental units with the primary residence. Further, VI Slice residency requirements are different than the VIHFA residency requirements.