Financing Options: In-house financing

In-house financing means the buyer will pay directly to the company (owner/developer) where the real estate property is purchased. In Davao City, the total contract price is usually divided into two: 1) 20% down payment; and, 2) 80% loanable amount. The 20% down payment may be paid in monthly installments or in spot cash (spot down payment) where the buyer gets a special discount. The 80% balance can be paid monthly for a given period of time (usually up to 5 years depending on the developer)

For example: A house and lot at Santiago Villas, a low -cost to middle class subdivision in Catalunan Grande, Davao City.

UPGRADED KEISHA HOUSE
Lot area: 143 sq mtrs
Floor area: 56.28 sq mtrs
House and lot Package Cost: 1,551,400
Reservation fee: 30,000 (deductable from the total package cost)
Net of reservation and processing fees: 1,521,400

Computation: In-house
20% down payment: (opt to pay 1yrs @ 0% interest) = 304,280
Monthly payment = 25,356.67


80% remaining balance = 1,217,120
TERMS
1 year @ 0% int. = 101,426.67 monthly
2 years @ 12% int. = 57,294.06 monthly
3 years @ 14% int. = 41,598.26 monthly
4 years @ 16% int. = 34,493.52 monthly
5 years @ 18% int. = 30,906.84 monthly

Note: This is a sample computation only. The prices and computations are subject to change without prior notice. Contact us for updates.

Related Articles:
Paying in Spot Cash
Paying in Deferred Cash
Financing Options: Pag-ibig financing
Financing Options: Bank financing

Ready to purchase a real estate property in Davao City? Check out this real estate website:
Davao City Real Estate Properties

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