Where to apply for a social home loan?
As a reminder, the social home loan was set up with the aim of opening up property to families with modest incomes. To do this, the interest rates of the PAS have been particularly studied to constitute advantageous and accessible rates. It was the State which set up the system in 1993. The PAS can be taken out with any credit institution that has concluded a State agreement.
You can choose your financial institution according to the classic selection criteria. The most important thing is always to refer to the overall cost that your credit will incur. It is useful in this case to compare the different offers, because if the State has implemented the system, the organizations remain free to configure their own PAS formula. In principle, the interest rate offered by banks will vary according to the authorized ceiling. It is possible to carry out the comparison via the APRs or to use a comparator or an online simulator.
But in all cases, a regulatory rate has been set, which the banks cannot exceed. The costs will depend mainly on the duration of the contract and the arrangements provided by the credit institution.
- All the conditions of access to the social accession loan
- Who can apply for a social home loan?
- PAS loan: funding for which project?
- Social home loan: the income conditions to be met
All the conditions of access to the social accession loan
There are many conditions required to access the social home loan. First of all, the PAS is reserved only for French nationals or foreigners who hold a residence permit. Then, conditions relating to the income criteria were set. This is a home loan intended for low-income households. The benchmark is the total income that enters the household, whatever its nature. And of course, the credit is granted for the purchase of a future main and permanent residence.
In addition, establishments are free to set certain conditions: personal contribution, guaranteed, etc. And the debt ratio will be put into consideration to calculate the borrower's capacity for repayment. Even if it meets the conditions, the granting of the PAS is not systematic.
Who can apply for a social home loan?
The PAS was intended for low-income households. This is a real estate loan set up so that families, even with modest incomes, can become the owner of their main residence. To do this, they will benefit from a capped interest rate.
To determine who can access it, income caps have been put in place. In other words, the total income in the household must not exceed the amount of the cap. In this case, we are talking about the means test. These conditions depend on the area in which the accommodation is located and the number of people who make up the household.
PAS loan: funding for which project?
The social home loan is a mortgage intended to finance the purchase or construction of a main residence for families with low income. Initially, the PAS will therefore be used to finance the purchase of new housing or old housing. But it is also possible to request a PAS to finance the purchase of land, and then the construction work of the new home. And finally, in certain exceptional cases accepted for PAS, the loan will be used to finance home improvement work.
It is generally the first-time buyers who have recourse to a PAS. It is reserved for work intended for main residences.
Social home loan: the income conditions to be met
The income criteria were set because the PAS was set up mainly for low-income households. This is a resource ceiling set as an eligibility criterion for the SAP. We are talking about resource conditions. These conditions are not the same in all localities, they depend on the location of the funded housing situation and the number of people in the household.
However, it is also possible that there is NOT refusal even if the criteria are met. In the event of significant debt, the bank reserves this right to refuse.
To have access to his first residence even one with a modest income, there are many possible financing options to make his real estate project a reality. Discover the different real estate loans available.