Mortgage lending is a very popular way to purchase housing. And if a mortgage on an apartment is a fairly common phenomenon that does not cause a lot of questions, then a mortgage agreement for the purchase of a country or private house has its own characteristic features. The topic of today’s article: mortgage on a private house. Consider how and where it is most profitable to arrange, what stages and in what sequence you will need to perform in order to get your own private housing.
Distinctive features of a mortgage on a private house
Not every banking organization is ready to provide loan funds for the purchase of a private house. This is due to the high risks of such a transaction. The risks are due to the fact that private houses and country houses have low liquidity.
If an apartment, in particular a new building, is fairly fast and sells well by the standards of real estate, then it will be somewhat more difficult to sell a private house to a bank. In this regard, there are special conditions for processing such transactions. Well, interest rates, respectively, are higher. But you can still take the mortgage on private houses. If there is such a need, then the banks form their proposals.
It should be noted right away that not all banks form such proposals. Which banks give a mortgage on a private house, consider a little later. Now it is important to determine the basic conditions. And one of the main requirements is the availability of real estate pledged.
Banks are very reluctant to make land collateral. It is much more profitable for a banking company if customers provide an apartment on bail, commensurate with the cost of the loan agreement. Of course, this is not a prerequisite, it is possible to issue real estate to be acquired as a pledge. But the percentage of credit approval, where a city apartment is a pledge, is much higher.
The second distinctive feature is that you can buy land in a mortgage loan for the construction of a house or a privately owned house in a mortgage. In both cases, the land must be owned by the borrower. And also the house can be attached land. All these nuances are reflected in the terms of the contract. Consider these cases separately.
Land or ready house?
In terms of interest on the loan agreement, the finished house is a more attractive option. In addition, often the conditions of social benefits, such as a mortgage for a young family, military personnel and other types of discounts.
The risk is that if the acquired property is the sole property of the borrower, and it will be pledged to the bank, then in case of loss of solvency, you can be left without housing at all.
Do mortgages on land without a house? Yes, you can take the site itself for the construction of real estate. The limitation is that the property being built must be residential and not used for commercial purposes. The conditions on the interest rate here will be somewhat tougher, but in this way you can save on the cost of housing, since the whole process of construction can be controlled independently.
Reconstruction of your house
Will give a mortgage and under the reconstruction of real estate owned. This type of financing is justified if the house is partially worn out and requires the replacement of a worn construction. Also, this type of contract implies additional buildings or superstructures and a complete redevelopment.
You can get a loan on the security of a private house and even a land plot. A big advantage is whether the object is located within or near the city. But as far as possible from various enterprises that can pollute the environment.
The average interest rates in the market for this type of lending are 12-15%. There are banks that give a mortgage and under 20%. A large company, like VTB 24 or Sberbank, has developed programs for military and young families.
Also, the benefits are the owners of VTB 24 and any other bank, that is, people who receive wages on the card of the bank where they plan to take a mortgage. The age of the borrower must be within 21-65 years. The maximum term is calculated up to 30 years.
In this case, the minimum monthly payment must be at least 40% of the total earnings of borrowers. Parents can be invited as guarantors for young families. Do not forget about the initial contribution of about 20%.
And the maximum loan amount should not exceed 80% of the property value. The minimum bracket is usually set at 300,000 rubles.
Requirements from banks to a private home
For a banking organization, the most important thing is to assess how quickly it will be possible to sell the house if the borrower stops paying the loan. If banks took any houses as collateral, this would have a strong effect on their financial stability. Therefore, financial institutions are very demanding on this issue. The main conditions are as follows:
- The property must have a concrete foundation, and the supporting walls must be made of brick or concrete blocks. In this case, the housing can be made of wood or foam type. But the advantage is given to concrete or brick buildings.
- It is necessary that the property can be easily reached. Ideally, the road to the object should be asphalted. Rarely, when you agree to a contract for a facility located 100 kilometers from a large settlement.
- The building should not be encumbered and have a ban on registration actions.
- It is necessary that the total depreciation of the house does not exceed 60%.
- There is no possibility to issue a mortgage on monuments of architecture.
- It is often found that a banking organization is ready to consider if there is a functioning bank branch in the region where the subject of the agreement is located. And also the borrower is registered in the same region.
The client will have to independently prepare a report of an independent appraiser. Based on this report, the bank will make a final decision on the possibility of issuing a loan and the credit limit itself. After which the deal can be issued. But now consider the requirements of a banking company to a potential client.