Mortgage lender closing cost rankings in Puerto Rico (2025)

Puerto Rico is a U.S. territory and operates under its own civil law tradition blended with federal mortgage requirements. Mortgage transactions in Puerto Rico are governed by the Puerto Rico Mortgage Act and related civil code provisions. Puerto Rico uses a mortgage (not deed of trust) structure, and foreclosure is a judicial process, meaning lenders must obtain a court order before completing a foreclosure — this generally extends timelines compared to non-judicial states. Puerto Rico is an attorney-closing jurisdiction; a licensed Puerto Rico attorney must oversee and certify the closing. Title insurance is available and widely used, though the regulatory framework for rate-setting differs from mainland promulgated-rate states. Transfer taxes include a documentary stamp tax and a mortgage tax assessed on the loan amount. Prepayment penalty rules for consumer mortgages follow federal Qualified Mortgage guidelines at minimum, with any additional territorial restrictions governed by local statute. The Office of the Commissioner of Financial Institutions (OCFI) serves as the primary territorial regulator for mortgage lenders operating in Puerto Rico.

FHA loans dominate Puerto Rico's purchase market, accounting for 50.1% of 2024 originations (4,863 loans) at a median rate of 6.25% and median costs of $9,338. This heavy FHA share reflects the territory's relatively lower median loan amounts and the income profile of many buyers who rely on low down-payment options. USDA loans were the second-most-notable government segment at 12.5% of volume (1,211 loans), supported by Puerto Rico's substantial rural and semi-rural population across its interior and coastal municipalities. VA loans made up 7.2% (702 loans), driven by the territory's active-duty and veteran population. Conventional loans accounted for just 30.2% of volume — well below typical mainland shares.