Developer financing by Lease/Purchase Option at Aqua Residencial,  July 1, 2011

 

 

	Option 1, 10% deposit	Option 2, 15% deposit	Option 3, 25% deposit
	Good, 5% Interest	Better, 4.5% Interest	Best, 3.5% Interest
year 1	4%P + 5%I + $295H*	4%P +4.5%I + $295H*	4%P +3.5%I + $295H*
year 2*	4%P + 6%I + $295H*	4%P +5.5%I + $295H*	4%P +3.5%I + $295H*
year 3*	4%P + 7%I + $295H*	4%P +6.5%I + $295H*	4%P +3.5%I + $295H*
Example of $265,000 Lease/Purchase Option
Deposit	$26,500	$39,750	$66,250
Balance	$238,500	$225,250	$198,750
year 1	$2,084/month	$1,891/month	$1,537/month
year 2**	$2,282/month**	$1,985/month**	$1,537/month
year 3**	$2,481/month**	$2,172/month**	$1,537/month
4%Credit	$795/month	$750.83/month	$662.50/month

 

In all above cases, in all years, an annual amount of 4% of the balance due will be applied toward the purchase price.  *NOTE:   295H* is $295/month HOA fees

 

Options and terms available:

 

1. Either 10% ,15%, 20% or 25% non-refundable deposit to initiate option with variable rates as per chart above.  (Other customizable options considered to meet needs)

 

2. Option to maintain previous year’s lease rate by increasing deposit and building equity, as follows:

 

• **On the first date of year 2, and again on first date of year 3, tenant/buyer has the option of increasing the deposit by 2% of full purchase price to remain at the initial year 1 lease rate.  In the example above at $265,000, increasing the deposit by $5,300.

 

3. Able to exercise purchase option at any time during 3 year lease period by paying the current balance due without penalty.

 

4. Option to assign rights under the agreement to a third party at any time, but not more than twice during the 3 year lease period for a $500 administrative fee each time.


5. All option money non-refundable if purchase not exercised within the 3 year period.

 

 

The above program is designed to qualify tenant as prospective purchaser by getting both deposit, and more importantly having realistic monthly payments as they would need to pay when applying for mortgage.

 

Examples above for $265,000 condo:

 

Example 1:

10% payment to start                                      $26,500

2%  year two                                                       5,300

2%  year three                                                     5,300

36 months credit of $795                                $28,620

 

Total equity applied toward  purchase            $65,720

 

24.8% of $265,000   =  $65,720 equity toward down payment for conventional mortgage

 

Example 2:

15% payment to start                                      $39,750

2%  year two                                                       5,300

2%  year three                                                     5,300

36 months credit of $750.83                             27,030

 

Total equity applied toward  purchase            $77,380

 

29% of $265,000   =  $77,380 equity toward down payment for conventional mortgage.

 

 

Summary of Mortgage terms currently available

 

USD for Foreigners ranges from 6.75%, 720 Fico and 50 LTV, 3/1 ARM

To 8.25%, 680 Fico and 75 LTV, 25 year fixed  (Most will be in the 7.5 – 8% range)

 

PESO for nationals  (Bancomer) 11.44% - 12.45% rates

 

90 LTV for homes under 3,000,000 PESOS and big jump to 75 LTV over 3,000,000

 

We have to assume most on either side of the border will be looking at 25% down plus closing costs of both sale and the mortgage, by fideicomiso or escrituras con hipoteca.