Due to the high demand for suburban real estate (small houses or cottages near large cities), a new direction in lending has appeared - a turnkey house or a loan for suburban real estate. We will tell about its features later in the article.
Distinctive features of individual construction
Given the current economic situation, an inexpensive house is a rarity. Therefore, those wishing to build a house on credit are increasingly turning to banking institutions with a request to finance them with a cash loan. Despite the relevance of the topic, if the scheme for acquiring an apartment in a multi-storey building is accessible and understandable, then buying a house or a cottage is shrouded in a veil of issues that today need to be addressed.
Building a house on credit is a great opportunity to get a house built according to individual wishes and requirements of the customer, according to a separately developed plan, with an exclusive layout. But how and where can I get a house on credit? What to look for when concluding such a deal with a credit institution, and how not to fall into the hands of scammers?
Home loan and a number of issues related to it
Investing in suburban real estate is the most profitable option. Apartments in modern residential complexes as typical representatives of the secondary real estate market have already earned negative customer reviews. So, the latter complain about the low quality spent in the home during the construction of internal works. And the owners therefore, after a short period of time have to make repairs on their own.
The main buyers of suburban real estate include people with a monthly income in the region of $ 6000-7000, an age group of 40 years. They want to either change their lifestyle through the acquisition of a private home, or expand their living space. And in this situation, building a house on credit is a decision that looks more rational than acquiring several apartments.
The credit market in our time is developing by leaps and bounds. Today, a large number of credit institutions in Russia position themselves as banks issuing loans so that their client can build a house on credit. But in reality, only a few are engaged in such financing.
Is there a difference between buying an apartment and building a house on credit
The difference between the lending procedure for building a house in the private sector or an apartment in a high-rise building is insignificant, but these subtle details sometimes play a decisive role for the buyer.
Many lending institutions have open lending for individuals who want to build a frame house on credit. Such small private houses are in high demand, because they are built quickly and without any difficulties, and the cost of such a construction is much lower than aerated concrete or brick and at the same time is not inferior in quality.
Lending to small private houses: distinctive features
The peculiarity of this type of lending is as follows: a banking institution is less demanding on the documentation that accompanies the construction of a frame house, while the purchase of a ready-made one will have to collect a whole package of documents.
The main advantage of lending for construction is the benefit for the client, since the cost of the loan is much less, and the application review period is up to 1 month.
It is possible to build a house inexpensively, on credit, by contacting a bank or a company selling real estate and offering turnkey house construction services. At the bank, you may be required to make a deposit: the site on which construction will be carried out or other real estate, which will act as insurance for the lender and confirm your solvency.
Loan for the construction of a frame house in a cottage town
In lending, there is another type of financing aimed at acquiring a finished cottage or building a wooden house in a cottage town when you buy a plot and a house on credit, and the builder carries out the construction of the house. This is not always convenient, since the buyer has the opportunity to take out a loan only at the bank that cooperates with the developer, which is committed to building a wooden house on credit. And credit institutions, taking advantage of such a situation, sometimes set unreasonably high prices for a loan for building a house, which is unprofitable.
In this case, the pledge for the bank is the acquired property with the land. Application review period - up to 3 weeks.
Application Consideration Features
What determines the possibility of successfully considering a request to a credit institution in order to receive funds for the construction of a private house or cottage in the country?
The borrower's financial position is the first thing a credit institution pays attention to. The first requirement that the bank puts forward is the introduction of the initial amount, which is at least 30% of the total cost of the future house, being built on credit funds.
Note! There is another important condition that is of key importance in the process - a wooden house or cottage must be built by at least 50% of the planned amount of work before applying to a credit institution.
As a result, it turns out that in order to build a turnkey house inexpensively, on credit, it is first of all necessary to confirm your financial viability to make monthly contributions and satisfy the requirements of the bank in relation to you as a lending subject.
The concept of “house on credit” still remains shrouded in secrets, but there is still a prospect for such a direction of financing, especially if we take into account the level of demand for the service, which is constantly growing.