Build a house on credit: the features of a home loan

Because of the high demand for suburban real estate (small houses or cottages near large cities), a new direction in lending has appeared - a house on a turn-key basis or a loan for suburban real estate. We will describe its features further in the article.

Distinctive features of individual construction

Given the current economic situation, an inexpensive house is a rarity. Therefore, those wishing to build a house on credit are increasingly turning to banking institutions with a request to finance them with a cash loan. Despite the topicality of the topic, if the scheme for purchasing an apartment in a multi-storey building is accessible and understandable, then buying a house or a cottage is shrouded in a veil of issues that are to be sorted out today.

To build a house on credit is an excellent opportunity to acquire a dwelling, built according to individual wishes and requirements of the customer, according to a separately developed plan, with an exclusive layout. But how and where can I make a home on credit? What to pay attention to, concluding such a deal with a credit institution, and how not to fall into the clutches of swindlers?

A home loan and a number of issues related to it

Investing in suburban real estate is the most profitable option. Apartments in modern residential complexes as typical representatives of the secondary real estate market have already earned negative customer feedback. Thus, the latter complain about the low quality of the internal works carried out in the dwelling. And the owners therefore have to make repairs themselves after a short period of time.

The main buyers of suburban real estate include people with monthly income in the region of 6000-7000 $, the age group of 40 years. They want to either change their lifestyle by buying a private home, or expand their living space. And in this situation, to build a house on credit is a solution that looks more rational than buying several apartments.

The credit market in our time is developing with leaps and bounds. Today, a large number of Russian credit institutions position themselves as banks that issue loans to ensure that their client has the opportunity to build a house on credit. But in reality such funding is handled by units.

Is there a difference between buying an apartment and building a house on credit

Between the procedure of lending for the construction of a house in the private sector or an apartment in a high-rise building, the difference is insignificant, but these subtle details sometimes play a decisive role for the buyer.

Many credit institutions open lending for individuals wishing to build a frame house on credit. Such small private houses are in high demand, because they are built quickly and without much difficulty, and the cost of such a design is much lower than aerated concrete or brick and in no way inferior in quality.

Lending to small private houses: distinctive features

The peculiarity of this type of lending is the following: a banking institution is less demanding about the documentation accompanying the construction of a frame house, while the purchase of a ready-made one will have to collect a whole package of documents.

The main advantage of building loans is the benefit to the client, since the cost of the loan is much less, and the period for consideration of the application is up to 1 month.

To build a house inexpensively, on credit, it is possible, having addressed in bank or the company selling real estate and offering services of erection of houses on a turn-key basis. In the bank you may be required to make a deposit: the site where construction will be conducted or other real estate, which will act as insurance for the lender and confirm your solvency.

Loan for the construction of a frame house in the cottage

In lending, another type of financing is allocated to buy a ready-made cottage or build a wooden house in the cottage, when you buy a plot and a house on credit, and the construction of the house is carried out by the developer. This is not always convenient, since the buyer has the opportunity to take a loan only in the bank that cooperates with the developer company, which undertakes to build a wooden house on credit. And credit institutions, using this situation, sometimes expose unreasonably high prices for a loan for the construction of a house, which is unprofitable.

In this case, the acquired real estate object together with the site serves as a pledge for the bank. Terms of consideration of the application - up to 3 weeks.

Features of consideration of the application

What determines the possibility of successful consideration of a request to a credit institution in order to receive funds for the construction of a private house or cottage outside the city?

The financial position of the borrower is the first thing the credit institution draws attention to. The first requirement that the bank proposes is the introduction of the initial amount, which is at least 30% of the total cost of a future house being built for credit.

Note! There is one more important condition that in the process is of key importance: a wooden house or cottage must be built not less than 50% of the planned scope of work until the time of applying to the credit institution.

As a result, it turns out that to build a house on a turn-key basis inexpensively, on credit, you first need to confirm your financial solvency to make monthly installments and meet the requirements of the bank in relation to you as a subject of lending.

The concept of "house on credit" still remains shrouded in secrecy, but there is still a prospect for such a direction of financing, especially if we take into account the level of demand for a service that is continuously growing.