Archive March 6, 2020

Government Agency home loans guide for construction, purchase and renovation

How to get an Government Agency loan for the first home

How to get an Government Agency loan for the first home

Government Agency long-term loans are produced at subsidized conditions granted to public employees and pensioners. Products that are granted to those who face significant expenses, including the purchase and renovation of the home. But let’s see in detail what the characteristics of Government Agency home loans are and who can get them.

Multi-year loans granted for the following reasons fall into the category of Government Agency home loans.

  • Purchase of the home intended for residence;
  • Construction of the residence housing;
  • Redemption of public housing or housing owned by public bodies already leased;
  • Acquisition of a house in a cooperative or from a cooperative of tenants of dwellings of public bodies that is being disposed of;
  • Restoration and conservative restoration interventions, extraordinary maintenance or building renovation of the house.

Fundable amounts, repayment and interest rate

Fundable amounts, repayment and interest rate

All products that fall into the category of Government Agency home loans have a ten-year repayment plan. The installments have a monthly installment and are directly deducted from the paycheck or pension received by the beneficiary.

Given that multi-year loans are products based on the assignment of the fifth. The monthly installment cannot exceed the fifth part of the monthly salary or net pension received by the beneficiary. The interest rate (Tan) is always fixed at 3.5%.

In addition to the interest rate, a rate of 0.5% is also applied to the gross amount of the beneficiary for the definition of administration costs. There is also a premium for the Social Institute Risk Fund. Premium which is defined by applying a rate which varies according to the duration of the loan and the age of the applicant.

As regards the amount that can be financed by Government Agency home loans, this is defined in the application on the basis of the income received by the applicant. However, Social Institute has set some limits on the amount for some of the purposes allowed by the Government Agency Loan Regulations.

Specifically, those who apply for Government Agency casa loans for the purchase of the residence house the maximum amount that can be financed is 150 thousand USD. The same applies to loans for the construction of the residence house. Loans that are intended to support maintenance, renovation, etc. instead they can get a maximum of 100 thousand USD.

Who can get Government Agency first home loans

Who can get Government Agency first home loans

Now that we have seen what the conditions of Government Agency home loans are, let’s move on to the question of requirements. Given that they fall under the category of multi-annual loans, these loans are subject to the same conditions. They are therefore accessible only to those who satisfy a series of requirements.

To access credit, you must first be a public employee or pensioner. The applicant must also be registered with the Social Institute credit fund, the Unitary Management of credit and social benefits.

The applicant must also be able to count on at least four years of retirement age useful for retirement purposes. Not only. Four years of contributions are also required from the aforementioned Unitary Management.

Although the presence of an open -ended contract is required, long-term loans can also be obtained by long-term loans. In this case, however, the employment contract must have a duration of not less than 3 years.

Credit with a pay slip

The loan with just one pay slip was a matter of course in the past. Today the offers can be searched with the literal magnifying glass, which actually only require a pay slip for the lending. At least in the case of larger loans, extensive checks are carried out. The article takes a closer look at the security requirements for lending.

The loan with just one pay slip – what has changed?

The loan with just one pay slip - what has changed?

The loan with just one pay slip still exists, but the offers have become rarer. The credit line is also often severely limited. The background to this development can be found in the decisions of the foreign ministers from Basel. As part of the banking crisis and the resulting euro crisis, the banks in the state have been “chained”. Today you have to check much more intensively whether a loan can be granted at all. One of the “firewalls” in the Basel contracts is the obligation of the banks to provide additional security for their investments.

The annoying consequence is that more paper has to be rolled. The statements of the current account are often to be attached to the applications. Three consecutive statements are requested and in some cases even a copy of the employment contract. In terms of all the effort, it is even easier to recognize defaulters than was previously possible. Whining doesn’t help either. The tightening applies to the whole of the state and even the otherwise reserved people have followed suit.

How can the effort be kept within limits?

How can the effort be kept within limits?

On the one hand, the cost of lending by the house bank is limited. In addition, the direct banks have also left unbureaucratic channels open. The house bank has access to the current account data anyway and therefore does not require copies of the statements. With the direct banks, the view has at least partially prevailed that a pay slip is sufficient if the account statements are available.

In addition, the loan is possible even more frequently with just one pay slip for small loans. For comparatively small loan amounts, the effort of a comprehensive review is often not worthwhile and a simplified procedure is used. The credit institutions that issue department store loans work in a similar way. Again, the credit line is comparatively small and the simplified credit check procedure is ideal.

Credit card companies should be mentioned as the last large group. Often, only a basic proof of income is required in the card application. A single pay slip is usually sufficient for this.