Projects to be financed with an approved loan
An approved loan can finance several types of projects. Generally, it is a question of financially supporting the purchase of new or old housing which will serve as the main residence. It can be a land purchase, then the financing of construction work. In all cases, in principle, an approved loan will always relate to housing use.
The loan agreement can also finance certain work carried out on an already existing housing. In this case, the owners will seek to improve their comfort of life. It can be expansion, improvement or even development work for a family member who has mobility problems. And very often, energy saving work is also encouraged.
In addition, the law sets certain conditions, in particular that of a minimum surface area for any purchase or any work financed by an approved loan. The minimum area depends on the number of people who will occupy the premises. It ranges from 9 m - for a person living alone and 16 m - for a couple. Then for each person, you have to plan 9 m². The condition has been laid down by law, but rare are the cases where it is verified in practice.
- The credit conditions of the approved loan
- The characteristics of an approved loan
- Who is entitled to an approved loan ??
- Agreement loan: with which institution to subscribe?
The credit conditions of the approved loan
No resource condition is foreseen. The loan agreement is granted to any individual of French nationality or holder of a valid residence permit. But it was intended mainly for households wishing to acquire housing to make it their main residence. This is the first condition, the occupation of housing as a principal residence once financed. A tenant can possibly apply for an agreed loan, but on condition that there is no family link with his lessor.
In the loan agreement, the loan term and the interest rate are fixed by the credit organization. You can choose either a fixed rate or a revisable rate.
The characteristics of an approved loan
The loan agreement is accessible to all individuals, without condition of resources. This is a form of mortgage, intended to finance the acquisition of a main residence or its development.
In an approved loan, the interest rate, the duration and the amount of the loan are freely fixed by the bank. It is more or less the same operation as the classic loan. But the personal contribution is not compulsory for the loan agreement.
On the other hand, the approved loan can be associated with another type of mortgage other than the classic mortgage. We speak in this case of the combined loan agreement.
Who is entitled to an approved loan ??
There are no subjective criteria relating to income for the borrower profile in an approved loan. Any individual, French or holder of a residence permit in United States can apply. The criteria remain the same as in a classic loan. The debt capacity will be used to determine the terms of the loan and in particular the repayment of the loan agreed. The interest rate will be set by the credit institution, and will depend on the duration of the contract. But a maximum amount for the rates has been provided for by the regulations.
The classic criteria remain valid: a reassuring personal, professional and financial profile.
Agreement loan: with which institution to subscribe?
The approved loan can be requested from any financial institution that has signed the agreement with the State. As a reminder, this is a real estate loan, therefore intended to finance a real estate project.
It should be noted that many establishments have concluded an agreement with the State. You must therefore take the time to compare the offers, and in particular the interest rates offered which are specific to each establishment. Of course, the variations remain within the limit of the rates provided for by law.
We advise you to go through an approved loan simulator or an online comparator. It's fast and free, and you'll know exactly which offer would best suit your needs and your debt capacity.
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.