All you need to know about loans to work
The works can be substantial and require most of the time the subscription to a loan. It can be different works such as the insulation of a home, the change of a decoration, the renovation of a facade, an enlargement, a construction, etc.
As far as the tenants are concerned, it is not possible to do big transformation work; only small jobs such as changing of paint or carpet are accepted. For big jobs, it is up to the owner to make the decision and to inquire about the possible loans.
Loan rates for work
The loan ready rate is different depending on the financing adopted by the borrower. There are 2 kinds of loan ready rate:
- Fixed rate work loan: This is the case when a non-changing interest rate is decided before the signing of a credit between the two parties. This rate can not change. What is change is either positively or negatively until the end of the loan repayment.
- Variable Rate Loan Work : The rate of this credit changes each year. It is modified according to the Euribor (USD Interbank Offered Rate) index. 3, 6 or 12 months depending on the case. This index, which appeared in 1999, is calculated on the basis of supply and demand between a large number of representative banks in the USD area. It can also be influenced by current economic conditions such as growth or inflation.
The work loan simulations
In order to find the most suitable loan work, it is possible to make simulations online. Many sites exist to compare offers, depending on the amount of the loan and the duration of the desired credit.
This simulation can also be done with banks, but also with credit organizations. Be sure to compare the offers offered by several financial institutions in detail in order to benefit from the best possible rate. Do not hesitate to play the competition in order to be given preferential rates.
The zero rate work loan
The loan works at 0 (PTZ), also called “eco-interest loan”, introduced on 1 January 2011, is a particular loan whose interest rates are zero. Indeed, these are supported by the state. This is one of the measures of the Grenelle of the environment.
What is the use of a PTZ?
This loan can not finance only works alone, but can accompany the acquisition of a habitat accompanied by works. It can not exceed the amount of $ 30,000, and the repayment term must not exceed 15 years, even for heavy rehabilitation work. This duration is generally lowered to 10 years, but must nevertheless be greater than 3 years.
After being reviewed by 1 January 2016, the specificity of the loan works at zero rates may be applied to finance the purchase of housing up to 40% of its value, whether new or old. This percentage falls to 10% in case of financing of social housing. The borrower has 3 years to complete the work from the day the credit is taken out. He can thus realize them in several times if he wishes it.
While funding for old homes was limited, it is guaranteed throughout the country (Guadeloupe, Martinique, Mayotte, Reunion and Guyana included) since 2016.
Before the total repayment of the work, the owner can not use his housing as business premises or even commercial, he can not rent it for seasonal renting, and is obliged to use this accommodation as his principal residence.
How to be eligible for the subscription of a loan work rate 0?
To access this loan, it is imperative that the house was built before 1 January 1990 and whether it is a primary residence. Secondary housing is not affected by this loan.
It is also very important for the borrower to have the work done by a company with the “Recognized as Guarantor of the Environment” (RGE) sign. This is where the principle of this eco-credit, developed after the Grenelle de l’Environnement, lies. It excludes work on non-collective sanitation systems.
To subscribe to this loan, contact a bank that has signed an agreement with the State. These banks are of the order of twenty.
Habitat Improvement Loan
This loan, also called PAF, concerns only eligible persons. It depends on the CAF and can finance the costs generated by the development, but also by repairing a main home: sanitation, heating, sanitation, expansion, insulation.
How to benefit from this loan?
To benefit from this loan, it is imperative to reside in France and already be a beneficiary of the CAF, and thus receive at least one of the family benefits. Persons benefiting from either the PLA, the allowance for adults with disabilities, or the housing allowance for persons without children, can not benefit from this loan. These persons must receive another allowance (one second) in order to qualify for it. To benefit, the borrower must go directly to his family allowance fund.
How much can one benefit?
The amount of home improvement loan depends on the overall cost of the work. It is usually up to 80% of the amount but can not exceed 1067.14 $.
At the signing of the contract, the borrower receives half of the loan on indication of the amount of the estimate. He receives the other half once the work is finished, on presentation of an invoice.
The borrower has a period of 36 monthly repayments, with a fixed interest rate of 1%.
The credit works
To access a loan for work, you can request:
Personal credit / consumer credit
This loan is particularly used for small works, such as renovation, or insulation, the amount of which is low. The borrower can claim this credit from all banks and credit institutions.
Some banks also offer specific loans, such as renovation work loans, pool work credits, garage work loans, or isolation work loans, with lower interest rates than other loans intended to finance projects. works. It all depends on the work done by the borrower. Check with the financial institutions offering these packages. Indeed, these often interesting if they take into account all the needs necessary for the realization of your projects.
Whatever the reason for the work, this loan can not exceed 75 000 $, over a repayment period of 10 years maximum. On the other hand, this loan has many advantages in carrying out the work. Indeed, the borrower is not asked to justify the nature of his work. There is no requirement to quote or invoice. the borrower can do the work himself.
However, the personal loan may have a higher interest rate than other work credits. Be vigilant to the different offers that we offer.
The mortgage loan to finance the works
A mortgage is usually used to finance the acquisition of a housing estate, but it also allows to finance everything related to real estate, including work.
The advantage of this loan lies in its accepted amount: It can finance major works, whose costs can exceed 75 000 $. The repayment is spread over a period of 10 to 30 years as a rule.
Most often, this credit allows the borrower to benefit from lower interest rates than in the case of a personal loan. It also makes it possible to couple this loan with another loan to finance a property; this loan is therefore interesting for work that goes hand in hand with the purchase of a home.
However, most of the time, the funds can not be released until one month later. Conversely, with a personal loan it is possible to unlock funds instantly.
Loans by aid organization
Social housing loans, or Anah loans, allow low-income people to benefit from funding for their work. These loans are subject to a certain amount of resources.
The social housing loan makes it possible to finance the construction of a new home, or improvement work of the order of at least 4000 $. The borrower must not exceed a certain amount of resources, calculated according to the number of dependents in the household and the geographical area concerned. It is possible to supplement this loan with other work credits, such as the zero-rate work loan, or the housing savings loan.
Anah loan only concerns security work (asbestos, unsanitary housing), prevention against insects or insulation. The works must be of an amount higher than 1500 $ (except for the people having a too modest income) and can not be carried out by private individuals.
It should be noted that it is essential to find a loan before starting work. It is therefore necessary to have already made estimates to estimate the total amount to ask.
Like any loan, the borrower will be asked for supporting documents in his file, such as: a piece of identification, account statements, a tax notice, supporting documents and quotations for the works concerned ( except for the personal loan) and many other documents.