The planned purchase: a valid alternative to the mortgage Buying a house, with a valid alternative, to the now impossible and unattainable mortgage? It’s possible. In fact, there is a particular expedient that allows you to immediately live in the apartment you like and whose initial down payment would vary from 6 to 10% of the price of the property.
But what is it about?
Today we talk about the planned purchase.
What is it?
Since lenders do not grant mortgages at 100% of the value of the house, it is difficult for the borrower to be able to buy a house. At least 30% of its value should be set aside. An alternative formula could be the scheduled purchase https://www.mrspropertysolutions.com/we-buy-houses-chula-vista-ca/
The Scheduled Purchase allows, after giving an initial down payment generally between 6% and 10% of the property price, to defer the payment of a further down payment over a maximum of 36 months, with monthly “installments” to be pay the seller.
Let’s give an example: Assuming a monthly installment of 600.00 euros for 36 months, the deferred down payment corresponds to 21,600.00 euros.
For the purchase of an apartment for 150,000.00 euros, with an initial down payment of 9,000.00 euros (corresponding to 6% of the price), this would allow for the signing of the notarial deed, after three years, having already paid to the seller 30,600.00 euros.
The remaining amount, 119,400.00 euros, corresponds to approximately 80% of 150,000.00.
Decreasing the loan amount to be requested from the bank and returning to 80% does not only mean being able to physically obtain a loan, it also means significantly lowering the monthly payment and saving a lot in terms of interest.
On the other hand, for those who sell, it means being able to enter that “slice of the market” of people who, despite having some savings on their part, despite having the will to buy, cannot because of the conditions imposed by the banks and are forced to look for a house for rent.
How does it work
In the preliminary, the price of the property is blocked, which cannot undergo any change for the entire validity of the contract, the amount of the monthly installments that will be paid to the Seller as a confirmatory deposit is established and the times within which to carry out are established the Notarial Deed.