The personal contribution is an important issue in the context of a real estate project. Nevertheless, banks sometimes agree to grant loans without contribution for certain investor profiles. All that remains is to find these establishments and there are two solutions for this:take the steps yourself or go through the services of a specialized broker.
The personal contribution is equivalent to the amount that the borrower is able to provide from his pockets as part of the real estate project. This amount is expressed as a percentage of the total amount borrowed. It generally varies from 10 to 30% and very rarely goes beyond 50%. The capital is used to cover certain additional costs arising from the real estate transaction, in particular notary fees, agency fees, brokerage fees and administration fees. The advantage of providing this contribution is that it guarantees the seriousness and involvement of the borrower in the project. A person who can save money is considered more reliable for banks.
These profiles even have the advantage of accessing more attractive interest rates. Better still, they can negotiate the terms of the contract and request that the process be accelerated or request a reduction in the application fee. This personal contribution can be made up in different ways. Generally, it comes from savings from life insurance, a Livret A or a Housing Savings Plan. But it can also be formed through a donation, an inheritance, a family loan, the sale of property and even subsidized loans such as the PTZ.
Although the contribution plays a crucial role in obtaining a mortgage, it is quite possible to consider a loan without contribution subject to respecting certain conditions imposed by the bank starting with age. It turns out that young workers can win the indulgence of lenders insofar as they are able to justify the lack of contribution. It is true that a young person who has just entered the professional world has not necessarily had the time to build up savings. The stability of the professional situation is also a sine qua non condition for a loan without contribution.
Having a position on a permanent contract or in the public service plays in favor of borrowers who prove that they have stable income thanks to a sustainable and fixed professional activity. In addition, it is imperative to have a healthy financial situation and to avoid payment incidents and bank overdrafts. Finally, the bank will also take into account the debt ratio which must not exceed 33% as well as the rest of the borrower's life.
To identify banks willing to make a home loan without contribution, the first most common solution is to take the steps yourself. Nevertheless, this option is time-consuming and requires a lot of patience, because you will have to multiply the appointments in the agency. During this meeting with the banker, a mortgage loan simulation will be carried out and then a document mentioning the applicant's borrowing rate will be sent to him.
For more inexperienced borrowers, it is best to seek the help of a mortgage broker instead. This professional offers support from A to Z in addition to providing personalized advice. Among other things, he is responsible for setting up the file in order to highlight the assets of his client so that he obtains a more attractive rate. He then approaches the banks to increase the chances of obtaining the loan and then carries out the necessary negotiations on the contract.
