Mortgage without contribution: dream or reality?

The project of a house is a dream shared by millions of French people who wish to become owners or invest in stone for a second home or rental, only the doors tend to close when the contribution is not present. Light on this particular financing where solutions remain.

Loan without contribution is doing well

Loan without contribution is doing well

Contrary to popular belief, credit without contribution is doing well. However, many households have to multiply the steps to obtain the best offer, from an acquisition project, the French pass to an obstacle course where offers of all kinds can make their appearance.

With a contribution, a borrower can negotiate his rate, assert his borrower profile and earn several thousand euros on the total repayment of the loan because by borrowing less, we repay less and therefore interest is minimized. Without contribution, it is more complicated because you have to play on the borrower profile, show your good will and try the negotiation by sometimes agreeing to take out additional products: savings, life insurance, insurance.

What conditions for the loan without contribution?

What conditions for the loan without contribution?

A real estate project without contribution is not a fiction, it is indeed possible by contacting a financing specialist (see this site for example). The idea is to make a request by having own bank accounts, that is to say no presence of rejections or unpaid in the three months preceding the request. Then, it is necessary to clearly define the project and the amount of funding to be able to cover any costs related to the operation, we will then speak of funding at 110%.

Finally, credit insurance is often a margin product, which allows banks to counter a very low credit rate, it is for many borrowers a mandatory consideration, namely to take out expensive lender insurance, it is good to know that you can change coverage for 1 year after signing the contract.

The big banks have become more active in small business lending in the years following the financial crisis, but to this day only the most creditworthy businesses are considered, and most banks require collateral to secure the loan.

Such lending requirements create challenges for smaller businesses with few assets, and for business owners who are wary of risking their personal assets. A number of internet-based non-bank lending sources have emerged to provide small businesses with access to financing without the need for contribution.

Understanding mortgage credit

For the financing of a small, medium or large real estate project, resorting to a mortgage loan would constitute a good alternative on condition, on the other hand, of being in possession of one or more real estate properties.

What is a mortgage loan?

What is a mortgage loan?

Whether you are a professional or an individual, you can apply for a mortgage loan as soon as you own a property. This money will constitute a mortgage for the borrowed capital that the creditor bank will agree to grant you. If you will no longer be able to reimburse the monthly payments, the lender has the right to seize the property and will be responsible for putting it on sale.

Like a conventional loan, the subscription of a mortgage loan also requires the establishment of the amount of the loan and the duration of the loan. The terms of this type of credit do not differ either from a usual loan with the possibility for example to repay it in advance or to adjust the monthly payments according to the state of your budget. The mortgage rate can also be either fixed or variable.

What about the repayment tenure of a mortgage?

What about the repayment tenure of a mortgage?

Compared to a conventional loan, a mortgage loan is a long-term loan whose repayment duration can be spread over 20 to 25 years or more. The duration of the loan is established and adapted according in particular to the borrower’s repayment capacity. The debt ratio is calculated according to the income of the loan applicant compared to his monthly expenses as well as what he has left to live.

The total cost of your loan as well as the monthly payments to be paid depend above all on the duration of the loan. The longer it is, the more interest you pay. It is then necessary to opt for a period that would be most appropriate for your current financial situation. You should know that the last monthly payment should not be fixed beyond the 90 years of the debtor.

Mortgages are considered secured loans, meaning that they’re backed up by an asset — the house — should the homeowner default. When the borrower defaults, lenders are permitted to take back the house, which is called foreclosure. For this reason, some lenders require borrowers to take out some kind of insurance, such homeowners’ insurance, which covers material damage to the property, or mortgage insurance, which protects the lender in case the borrower defaults.