These are additional services that have to be paid back, but on favorable terms.
Such loans can be applied for from the Nice bank, the federal states or other public institutions. They provide financial support for young families or families with only one salary who have decided to make their dream of their own four walls come true.
The primary goal when granting an application loan is to promote housing. This means that the group of beneficiary households has already been narrowed down considerably, since as a rule, only newly created housing (first occupancy) can be funded as part of the reimbursement loan.
How does an expense loan work?
In order to receive such a loan, applying families must meet certain requirements. The following factors play an important role in the granting of funding:
- a certain income limit is not exceeded
- the number of children in the family
- the size of the residential property to be funded
Unlike with conventional mortgage loans, banks or other financial institutions do not grant such an expense loan, but you get it directly from the state.
What needs to be considered regarding the conditions
The expense loan is not a federal funding, but a support for builders at the state level. Against this background, it becomes clear why there is a very heterogeneous structure in terms of conditions in the area of expense loans. Builders must obtain detailed information about the agencies responsible for their federal state on the terms of the subsidies.
- Depending on the federal state, the amount of own funds required can be different. If in some cases ten percent equity is sufficient (measured in terms of total costs), it must already be 15 percent in other federal states that the household brings in capital.
Interest and repayment on the expense loan
The peculiarity of such a loan is that the borrower does not have to start repaying it immediately. The repayment can only start at a later date. Depending on the income situation of the applicant, it can be agreed that an expense loan remains completely free of repayment and interest for a certain period of time. The repayment then takes the form of monthly interest, as is the case with a classic loan.
Interest rates are also lower for an expense loan than for normal loan contracts. This takes into account the applicant’s financial situation. If he had to pay the market interest, real estate financing would not be feasible for him.
- This form of support can also be used in the area of social housing, e.g. B. for housing associations, their rents on low-income singles, couples or families and people who rely on Best bank.
What are the benefits of an expense loan?
Since the financial burden on the borrower is high in the first few months of real estate financing, the opportunity to start repaying a reimbursement loan later proves to be a great relief. The very low interest rate of this state subsidy also significantly relieves the borrower’s fund.
With this state funding, low-income individuals, couples and families have a great opportunity to have their own four walls and thus adequate living space. Without this support, the purchase or construction of a residential property would not be realistic for these groups of people.
What should you watch out for with an expense loan?
Unfortunately, state funding is not available to everyone. If you want to apply for such a loan, you should clarify beforehand whether you meet the above requirements. If you are not sure, you should not be afraid to inquire with the relevant authorities (e.g. Housing Office, Nice bank). It also makes sense to clarify in advance whether you can fund your own living space. In some cases, despite spending loans, the funds are insufficient.