The absence of personal contribution no longer constitutes an obstacle to the mortgage. To apply for a loan, the borrower must present a solid case and convincing arguments.
To access the property, applicants must build a loan file. In this file, they will have to mention the presence or not of a personal contribution.
The higher this contribution, the more the bank will be reassured at the idea of granting a loan. However, by taking out optimal borrower insurance and by proving a stable financial situation, it is entirely possible to take out a loan without a down payment. Explanations.
The law does not require a minimum contribution to take out a mortgage. Banks set their own conditions in this area. Some require a minimum contribution rate of 10% in order to accept the granting of credit.
This contribution may correspond to savings, an annuity or even a donation. The personal contribution is intended to reduce the allowances if the holder wishes to take out a mortgage with a bank. It is then dedicated to the payment of additional costs: application fees, notary fees, agency fees.
Often, borrowers do not have personal contributions. In this case, the banks make the decision to provide 110% financing. In other words, the lender grants the applicant a mortgage corresponding to 100% of the value of the property and an additional 10% for the settlement of the ancillary costs previously mentioned.
The home loan without contribution concerns several categories of people. First, there are young people who have just entered working life.
Most did not have time to build up savings to face such a situation. Then there are individuals who have solid savings but who do not wish to mobilize it to finance their acquisition. Finally, investors are also concerned because the mortgage without contribution can allow them to optimize their taxation.
To benefit from a loan up to 100% of the amount sought, the borrower must indicate the reasons for which he cannot provide a personal contribution.
The first thing to do is to provide a complete file to the bank including all the supporting documents requested and in particular the latest salary statements, account statements and tax notices. It is also important to show that your project is viable by bringing the documents provided by the promoter or the seller.
Before getting started, it is essential to compare mortgage loan offers. To find the most attractive offer, the best solution is to use an online comparator. For convenience, you can also go through a broker who will select the offers at the best rate.
If your file poses too high a risk, it is possible to offer a third party to act as a surety. The bond can reassure the lender and encourage the granting of financing.
The lending bank will ask you to take out borrower insurance to avoid any risk of non-repayment. Note that since the entry into force of the Lagarde law, you can take out loan insurance different from that offered by the bank provided that it includes equivalent or better guarantees. Taking out the best borrower insurance can help you get a mortgage without a down payment.
Finally, in case you choose to opt for the group insurance offered by the bank, keep in mind that you can change insurance on each anniversary date if you find a more attractive offer.