A home loan can be obtained without having any financial contribution, some good practices are however necessary to find its financing near the good organization.
The contribution is a sum of money resulting from savings or the resale of movable property as real estate, so it can be the resale of a car, an apartment, or any other element allowing to have a sum of money to bring to the building project. Borrowing without contribution was a few years ago still a real challenge because the personal contribution constitutes a guarantee for the borrower, it is both a positive signal on the capacity of financial management of the borrower but also on the taking in charge of the costs related to the implementation of the mortgage.
The 110% mortgage
The first step is, therefore, to know how much I can borrow without contribution as part of my real estate project, and this step takes place with the calculation of the borrowing capacity. It allows us to quickly know if the borrower’s current finances allow him to obtain financing, taking into account the absence of contribution.
We often talk about the 110% home loan to designate the operations of housing loans without contribution because the lender will simply offer a loan for the requested amount which he will increase by 10%, in order to defray the costs linked to the setting up of financing, which is usually covered by the contribution.
It should be known that within the framework of the establishment of the mortgage, whether it is with or without contribution, there are obligatorily costs to cover and that starts with the expenses of files, they can be fixed or in percentage, that is to say, depending on the amount of the loan. Added to this are the warranty costs, generated by a mortgage or a deposit. In the context of the mortgage, there is a visit to the notary and the payment of fees for the registration of the mortgage, which the notary will take fees or emoluments. Finally, when using a broker, you will have to add brokerage fees.
Which bank for the mortgage without contribution?
On the mortgage market, there are establishments specializing in short-term financing (10 years for example), there are establishments specializing in long-term financing (25 years, 30 years or even 35 years) with mortgage, However, there is no organization that positions itself clearly on the financing of credit without contribution.
There is however a possibility of finding the best offers of real estate credit without contribution by using a comparator, that is to say, that this comparator will allow with a loan simulation to probe the organizations that can meet this demand, with the possibility of benefiting from the best rates on the home loan market. The simulation is also free and without obligation.
How long to get funding
The processing of a loan dossier for a borrower without contribution will require a little more time because the costs can be financed through a second personal loan, thus completing the financing need of the main mortgage. These arrangements are therefore complex and require a feasibility study with analyzing documents sent by the borrower, if the opinion can be obtained within 24 hours, it will take a little more time to release the funds.