Beyond regulated credits (zero rate loan, loan for social accession, etc.), there are borrowing solutions which are exempt from all regulations: the loan in fine or amortizable, the bridging loan, the ELP ( Housing Savings Loan), CEL (Housing Savings Account) and in addition, the Housing Action Loan (ex 1% Housing).
What is the classic bank loan or free bank loan?
A conventional bank loan is a borrowing solution, which is not constrained by conditions imposed by the state. In fact, it can be freely allocated by a credit institution to various projects: purchase of housing, land, financing of works, etc., and for an extremely flexible duration, which can reach 40 years.
If the loan offer is not subject to any regulations, the lender must comply with certain rules. Before any proposal, he must inform the borrower of the risks of such credit and check his repayment capacity. Then, the formulation of the offer must include the mandatory information: loan at a fixed or variable rate (or revisable), the duration, the amount, the guarantees requested (mortgage, deposit), insurance, etc.
What are the different types of unregulated loans?
The loan in a fine or the amortizable loan
Classic, the amortizable loan results in monthly payments which cover, at the same time, the repayment of the borrowed capital and the interests. To differentiate from the loan in fine, whose monthly payments cover only the interests, before paying off in full and in one go, the amount of the credit at the maturity of the credit. Note that this formula primarily targets owners wishing to rent the property that is the subject of the loan.
The bridge loan
As the name suggests, the bridging loan is a source of so-called transitional funding. Its purpose is to allow an owner to purchase a new property, without having sold the previous one.
Lasting from 1 to 2 years maximum, it is built on the basis of the value of the current housing, possibly supplemented by a mortgage. On sale, the borrower repays the bridging loan in full, so that they only have to pay the monthly payments of the traditional complimentary loan.
The ELP and CEL
The PEL and the CEP are two savings devices, intended for a real estate purchase at a preferential rate or for the financing of works of the main housing. The first, whose ceiling is set at 61,200 euros, can allow a loan of 5,000 to 92,000 $; the second, whose ceiling is set at $ 15,300, can allow a credit of $ 23,000, 18 months after its opening.
If these devices do not currently benefit from an attractive interest rate (3.20%), the State grants a premium for any subscription of a credit (under certain conditions), up to $ 1,000 for the ELP and $ 1,144 for the CEL.
The Action Logement loan, in addition
The 1% Housing loan, renamed “Housing Action Loan” since January 2010, is granted, subject to means, to employees of private companies of more than 10 people, whatever their seniority, as well as employees in pre-retirement or retired for less than 5 years.
Only intended for the purchase of the main residence, this device gives the right to a preferential rate (1.75% excluding insurance) to finance up to 30% of the total cost of the loan granted, for a period of 5 to 20 years. , up to a limit of $ 25,000, depending on the geographic area.
Unregulated, these borrowing solutions must be carefully studied and compared (a type of rate, repayment period, loan costs). Do not hesitate to use a real estate broker to find the loan that best suits your situation.