Second Homes on St. John, U.S. Virgin Islands
St. John is a place I love, and I understand why so many people want a home there. Island property comes with its own checklist, from water and insurance to rental licensing, so here’s what to know before you write an offer on that villa.
Before you finance a home on St. John
Andy Zemon, NMLS 208916, is an NMLS-registered mortgage loan originator, registered to lend in all 50 states. Financing availability for U.S. Virgin Islands properties has to be confirmed for your specific property, so call me at 434-443-6557 before you write an offer. You can verify my NMLS record on NMLS Consumer Access. My home market is Charlottesville and Central Virginia; this page is for clients who share my love of St. John.
What makes St. John different
- Much of the island is national park. Virgin Islands National Park includes 7,259 acres, about 60% of St. John (National Park Service), so private property is a smaller slice of the island.
- Water usually comes from the roof. Virgin Islands law generally requires a dwelling to have a self-sustaining water supply, such as a rainwater collection area and cistern or a well, unless verified public potable water service is installed, with minimum cistern sizes based on roof area (V.I. Code tit. 29 §308). Have the cistern, gutters and water system inspected; DPNR publishes a homeowner cistern guide.
- Insurance is a big line item. Get windstorm and flood quotes early in due diligence. Flood insurance is required for buildings in high-risk flood areas with federally backed mortgages (FEMA).
- Plan extra time. Inspections, appraisal and insurance on an island can take more coordination than at home, so build cushion into your contract timeline.
Second home or rental villa?
Under Fannie Mae’s guidelines, a second home must be occupied by you for part of the year, stay under your exclusive control, not be primarily operated as a rental and generally can’t use rental income to qualify. Many villas are run through rental managers. If the rental plan is the main plan, or a management agreement controls the calendar, expect investment-property financing. Share any management agreement with me early.
Renting it short-term
- Hotel room tax: the V.I. Bureau of Internal Revenue applies a 12.5% hotel room tax to rentals of an apartment, condominium or residence when the total rental period is less than 90 days. The lessor collects it and files Form 722 V.I. monthly (BIR Tax Structure Booklet).
- Business license: ask the Department of Licensing and Consumer Affairs (DLCA) which license your rental needs. Business licenses generally require a trade name or business registration, a BIR tax clearance letter and DPNR zoning approval (requirements summary).
- Other taxes: ask a tax professional about gross receipts tax and income tax on rental income.
- HOA or association rules can limit short-term rentals even where the territory allows them.
Summarized from official and published sources as of November 9, 2026. Rules and rates change; confirm with the agency before you buy.
St. John second-home questions
Can I get a mortgage on a second home on St. John, U.S. Virgin Islands, from a Virginia loan officer?
Ask before you write an offer. Andy Zemon, NMLS 208916, is an NMLS-registered mortgage loan originator, registered to lend in all 50 states. Whether financing is available for a specific U.S. Virgin Islands property has to be confirmed first, so call (434) 443-6557 to check. Second-home and investment-property rules work the same way there: the loan is classified by how you will actually use the home.
How much of St. John is national park?
According to the National Park Service, Virgin Islands National Park includes 7,259 acres, about 60% of the island of St. John, plus 5,650 acres of adjacent underwater area.
Do homes on St. John need a cistern?
Under Virgin Islands law, a dwelling generally needs a self-sustaining water supply, such as a rainwater collection area and cistern or a well, unless verified public potable water service is installed. Minimum cistern capacity is set by roof area (10 gallons per square foot for one-story buildings and 15 for two or more stories). Have the cistern and gutters inspected before you buy.
What taxes apply to a short-term rental in the U.S. Virgin Islands?
The V.I. Bureau of Internal Revenue applies a hotel room tax of 12.5% of the gross room rate to rentals of an apartment, condominium or residence when the total rental period is less than 90 days; the lessor collects it and files Form 722 V.I. monthly. Ask a tax professional about gross receipts and income tax on rental income.
Dreaming of St. John?
Tell me the town, the property and how you plan to use it. I’ll tell you how a lender is likely to classify it, which local rules to check and what to gather before you make an offer.