Seller Carry Financing:

Currently, there is no bank financing as we traditionally know it in the United States. All sales are cash only, seller carry, or developer financing.

The most common here is seller carry. If the seller is willing to carry, here is an example of what you might see: 3 to 5 years, 20% - 50% down, an interest rate of 5% -9%, and a balloon payment at the end of the term. Note this is a negotiation and comes down to what terms are acceptable to both parties.

 

Developer Financing:

Developer financing is financing offered by the developer of the project. Developer financing is sometimes available at new complexes like Encantame Towers and developments like The Sonoran Properties.

Here is an example of a developer financing you might see: 20% down for 20 years at 9.9% assumable loan. 

 

 Important things to know:  

When you do any loan with a warranty trust, there will be additional expenses. First, your yearly trust fee will be approximately $995 per year, verse $499 a year for no loan. Second, to remove the warranty trust, it will cost between $4,000-5,000.