There are several types of real estate loans. Don’t be afraid to try different combinations.

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The different real estate loans

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CategoryPractical guidelines

The different real estate loans

Different combinations are possible.

The bank loan

If you decide to take out a bank loan, don’t hesitate to play the banks off against each other and compare the cost of the credit. The higher the amount of your down payment, the easier negotiating will be.
Depending on your down payment, the bank can propose a redeemable loan, at a fixed or variable rate, or an In Fine loan (redeemable at maturity).

The subsidised loan

The subsidised loan (the PAS) is dedicated to households of which the resources do not exceed a certain ceiling. It concerns all housing types, new and old, regardless of the price per m2.
The subsidised loan makes it possible to finance the full price, not including mortgage and Notary fees. The loan period can go from 5 to 30 years.
This type of loan has many advantages: less expensive mortgage fees, a right to the APL (French personal housing benefit) if income does not exceed a certain amount.

The state-guaranteed loan

The advantage is to be able to benefit from the APL. It is used to finance the purchase of a primary residence or a rental investment property, provided it represents the tenant's primary residence. Obtaining a state-guaranteed loan is not conditional on income. It can cover all the fees involved in purchasing or improving a property.

The interest-free loan

The interest-free loan was created in 1995 to help people with low incomes finance the purchase of their primary residence.
To be eligible, the borrower must meet certain criteria, namely:

  • to have never owned his/her primary residence over the last 2 years
  • to have never exceeded the legal income ceiling for the year N-1
The homebuyer’s loan

The homebuyer’s loan is a reduced rate loan. To be eligible, you must have saved money beforehand via a Home Savings Plan (PEL) or a special homebuyer’s savings account (CEL).
The maximum amount of a loan from a PEL is € 92 000. For a CEL, it is € 23 000.

The 1% housing loan or employer’s loan

This loan applies to employees of private sector firms with a workforce of more than 10. To find out how you can benefit from this loan, see your employer or the organisation that manages his/her/its contributions. The 1% housing loan is reserved for the purchase of a primary residence.

Updated on: 24/01/2008

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The fixed or variable rate

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