The different real estate loans

There are regulated loans that meet specific standards (income, price per m2, type of transaction, etc.). If you are eligible, prefer them to others, their conditions are often quite interesting.

The homebuyer’s loan

This a reduced rate loan. It is granted after a minimum 18-month period of savings for a special Homebuyer’s Savings Account (CEL) or after 3 years for a Home Savings Plan (PEL). The rate, the amount, and the term of the loan vary according to acquired rights. The homebuyer’s loan can finance the purchase of a primary or secondary residence, primary home of the owner or rental investment property, it can also cover certain work. The purchase of a piece of land alone is not possible within the scope of the homebuyer’s loan.

The maximum amount of the loan is :

• € 23 000 for a CEL
• € 92 000 for a PEL

The interest-free loan

Created in 1995 to help people with low incomes finance the purchase of a property, the interest-free loan (link to the interest-free loan) can be used to :

• build or purchase a new home that has never been occupied
• purchase an existing home, regardless of its age, and, if needed, finance the work to bring it up to standard
• purchase and transform a space (office, barn, etc.) into a home or finance the work if the borrower is already an owner

Be careful, in all cases, the borrower must not have owned his/her primary residence over the last 2 years.

The state-guaranteed loan

It offers the ability to benefit from the APL (French personal housing benefit paid by Social Security). Obtaining it is not subject to conditions of income. It is used to finance the purchase of a primary residence or of a rental investment property, provided it represents the tenant's primary residence.

The subsidised loan

The subsidised loan (or PAS) is used to finance a property that must be the primary residence of the borrower. The assignment procedure depends on his/her income. It entitles you to the APL.

The 1% housing loan

This loan applies to employees of private sector firms with a workforce of 10 or more. The 1% housing loan is reserved for financing a primary residence (purchase, construction, expansion, improvement, etc.).

If you must choose a traditional loan, shop around and don’t hesitate to make appointments with several different banks. The higher the amount of your down payment, the easier negotiating will be.
According to your profile, the bank will propose a redeemable loan, a fixed rate, or a variable rate, or an in fine loan.