Monday’s the day for builder incentives

Two emails from builders arrived within minutes of each other, both with some nifty fine print.

The Belvedere model home at Holly Hill is now available for investment purchase!
Guaranteed 1 year leaseback at $2640/month*
Turn into $169 positive monthly cash flow with 20% down ($87,998)
and a fixed 30 year mortgage of $351,992 at 6.25% (total price $439,990).

*contingent on the buyer using their lender. I love guarantees.

Out with the old and in with a new Hauser Home! Our gift to you this holiday season — No Payments For 6 Months! Hurry, act now, this great offer ends December 21st! What a great way to start the New Year and it’s available at any Hauser Homes community.

* “buyer may finance via any other qualified lender but will not be eligible for this offer. ”

My favorite part of this particular fine print:

Buyers remain responsible for all loan payments including property taxes, insurance, and homeowners association fees, if any.

Just so there’s no confusion.

These are some of the incentives that were being offered in August 2007. One local listing is offering a 1996 Miata as an incentive – what might the lenders think when they see that?

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1 Comment

  1. Susan McGinnis December 17, 2007 at 12:07

    Jim, the lenders will subtract the value of the Miata from the sale price of the home and calculate the loan-to-value of the requested mortgage from the adjusted price. In other words, you cannot use personal property as collateral for a real estate loan. This is looked at differently than the seller paying the buyer’s closing costs. However, this strategy will work if you buyer has a large downpayment.