Moving from Puerto Rico to Central Florida: what to know about buying or renting a home

Buying from Puerto Rico or renting first

• Buying from the island: you can tour homes by video call, hire the inspector and close without traveling. It makes sense if you already have a job in Florida, or income that won't change with the move, and you know the area.
• Renting first: gives you time to get to know the cities, the commute to your job and the real costs of power, insurance and HOA. It costs one more move.
• Primary residence: a primary-residence loan is for a home you'll live in, and the mortgage says how soon you must move in. If you expect a delay, tell the lender up front.

If you rent from a distance, watch for fake listings: the FTC recommends searching the address online in case it shows up with a different price, a different contact or for sale, and being wary of rent much lower than similar homes. Don't pay anything before someone you trust sees the home and you have the lease. See rent or buy in Polk?

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Mortgage paperwork with Puerto Rico income

The lender wants to see that your income is stable and will continue. It usually asks for:

• Recent paystubs.
• Your Withholding Statement (Form 499R-2/W-2PR), which plays the role of the W-2.
• Your tax returns. On loans that follow Fannie Mae's rules, borrowers with Puerto Rico income authorize their verification with Hacienda's Modelo SC 2907 instead of IRS Form 4506-C.
• Bank or credit union (cooperativa) statements for the down payment and closing costs.

Work history. Fannie Mae has lenders check whether your last two years show a reliable pattern of employment; a shorter history can be accepted with positive factors. Changing jobs doesn't disqualify you if your income is steady. Gaps without work and a lower new salary, which is the one used to qualify, are the bigger concerns.

If you're moving for a new job. On some conventional loans, Fannie Mae accepts a signed job offer if you start up to 90 days after closing (one-unit primary residence, fixed base pay and savings in reserve). FHA, VA and USDA have their own rules. Talk to the lender before you resign, and also if you'll keep working remotely for your Puerto Rico employer.

Your credit

Puerto Rico is a U.S. territory and the federal credit reporting law applies there, so you don't start from zero: you get your Equifax, Experian and TransUnion reports just as you would in any state. Check them for free at AnnualCreditReport.com before preapproval, make sure your island accounts show up and dispute anything that's wrong. See what credit score do I need to buy a house?

Closing without traveling

• Online notary: an online notary located in Florida can notarize your documents by audio and video even while you're in Puerto Rico.
• Notary on the island: Florida also recognizes signatures made before a notary of a U.S. territory who has a seal. Not every lender and title company accepts every option, so ask early.
• Fraud: the CFPB warns never to follow payment instructions that arrive by email. Confirm them by calling the title company at a number you already have. If you've been scammed, call your bank right away and report it to the FBI at ic3.gov.

Homestead: January 1 and March 1

For the homestead exemption you must own the home and have it as your permanent residence on January 1, and apply with your county Property Appraiser by March 1.

Section 196.031 of the Florida Statutes denies homestead to anyone receiving a property tax exemption or credit in another state that requires permanent residency. The text says "another state" and doesn't mention Puerto Rico. If your home on the island has the principal-residence exoneration, ask the Polk or Osceola Property Appraiser what to do before you apply. See the homestead exemption.

Driver license and car

• Deadlines: according to FLHSMV, Florida's driver license agency, once you establish residency you have 30 days to get a Florida license and 10 days to title and register your vehicle.
• Your Puerto Rico license transfers like one from another state: you surrender it and, in general, take only the vision and hearing tests.
• Documents: a valid passport or birth certificate (FLHSMV only accepts Puerto Rico birth certificates issued after July 1, 2010), proof of your Social Security number and two documents with your Florida address, such as a lease or deed.
• Where: in Polk and Osceola, at the Tax Collector's offices. In Polk, license services require an appointment.
• Your car: you need insurance from an agent licensed in Florida and a VIN verification, which can be done by a Florida dealer or a law enforcement officer, among others. Bring the Puerto Rico title and registration and ask what else they need.

Insurance and flood

Homeowners insurance is a big part of the monthly payment, and flood insurance is separate. Get quotes as soon as the home is under contract. See home and flood insurance.

Down payment help

• Florida Housing uses the IRS definition of a first-time homebuyer: not having owned and lived in your primary residence in the last three years. If you owned and lived in your home in Puerto Rico during that time, ask whether you qualify.
• Hometown Heroes requires full-time work with a Florida-based employer, so in general it doesn't apply while you work for a Puerto Rico employer.

See down payment assistance and Hometown Heroes.

Income taxes

Florida has no state personal income tax. Leaving Puerto Rico residency has its own rules with Hacienda and the IRS, which in some cases asks you to report the change on Form 8898. Talk to a tax professional before you move; this guide doesn't give tax advice.

Let's talk about your move

I'll walk you through the process in Spanish or English, by video call or phone, at no cost: how to look for a home or rental from a distance, what to ask the lender and how to set up the closing. Book a free consultation.

This guide is general information, not legal or tax advice. Confirm your situation with your lender, the Property Appraiser, the Tax Collector and an accountant or attorney if you have questions.