Mexican Mortgage Giant Launches Rent-To-Buy Program
| August 10, 2010 | Posted by Sandie under Announcements, News, Real Estate, Rent2Buy Concept |
Infonavit is Mexico’s largest home lender. The federal housing fund announced on Monday that it would launch a rent-to-buy program.
The rent-to-buy program is aimed at potential home buyers who are considered low-income and therefore are not eligible fo
r a mortgage loan.
The terms of the program are as follows: individuals enrolled in the program will have to pay the equivalent of at minimum 10% of the home’s value in rent within an allotted period. Participants in the program will have to pay the 10% for at least six months before they will be able to request a mortgage for up to 314,420 pesos (or the equivalent of $24,910).
The pilot rent-to-buy product will initially be provided in Tijuana and Aguascalientes through Urbi Desarrollos Urbanos SAB, a Mexican home construction company. The company reached a deal with Aureos Capital Ltd., a private-equity shop, in an attempt to enhance its rent-to-buy option for home sales.
Infonavit is financed by its lending operations, employer contributions on behalf of the country’s 14.5 million salaried workers, and through mortgage bonds. In the past year, Infonavit has budgeted somewhere between 475,000 to 525,000 mortgages.
Click here for a link to the original article in the Wall Street Journal.
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