Own apartment or private house – many people dream about it. But if you have recently become a parent, the need for your property becomes even greater. How to make this dream come true? The choice is not very big – whether to save money for several years, expect parental support, sell an existing property, or apply for a home loan.
A home loan allows you to choose and buy a property that suits your needs, and a home loan is available on particularly advantageous terms for new families. In this article, we’ll talk about how to use government-sponsored housing assistance and what to do if such support is not available!
What is a Home Loan for Young Families and Who Can Get It?
The state guarantee has already helped thousands of families across Latvia purchase their homes. This is provided by the Secura program for families, which is implemented in cooperation with several commercial banks.
Under the program, borrowers receive a down payment on their down payment, which is often a major obstacle to their property. If the 15% down payment required by banks is too high for your family budget, Secura can help!
Although down payment is also available in the credit industry, such loans have much higher interest rates and generally less favorable terms. A state-guaranteed home loan, on the other hand, helps you buy a good apartment or house with a lower down payment.
The amount of the discount depends on the number of children in the family:
- one child – reduction of the first payment to 10% or USD 10,000;
- two children – reduction of the first payment to 15% or USD 15 000;
- three children – reduction of the first payment to 20% or USD 20,000.
Please note that although the Secura program is aimed at young people with young children, families with children up to the age of 23 may also apply for the program.
State aid for young professionals
But if you have no children in your family, but buying a home is a hot dream? The Secura program will be useful to you too! From 2018, a special program for Secura young professionals has been in operation.
Eligible persons shall be:
- under 35 years of age;
- with a higher or vocational education;
- with a stable income.
Like the Secura Family Program, Secura provides young professionals with a lower down payment and a state guarantee. How does it work? Here are the basic conditions of the program:
- a maximum guarantee of 20% of the value of the property, which does not exceed USD 50,000;
- warranty term – 10 years;
- annual commission – 4.8% of the remaining amount of the guarantee.
And now let’s talk about how to apply for a home loan. Keep reading and find out useful information!
Home loan from A to Z
An apartment loan can be applied for online or at a lender’s branch, but every borrower should understand that a property loan is not a lightning fast service that takes 15 minutes to complete. Applying for money can take days and even weeks, as home loan is often the most serious and, in monetary terms, the largest transaction in a person’s life.
If you also want to take the first steps towards buying a home on credit, you will need to go through the following steps:
- first time loan application;
- consultation with a credit specialist;
- property appraisal;
- preparation of a complete package of documents;
- preparation, approval and signing of a credit agreement;
- preparation and signing of purchase agreement;
- registration of title and mortgage in the Land Book;
- optionally – real estate insurance;
- transfer of the loan amount to the bank account of the borrower.
Obviously, buying a home is a time-consuming process, but credit specialists help borrowers navigate the labyrinth of legislation and credit terms. Above all, do not be afraid to ask, question and clarify anything that is not 100% understandable.
Sign a home loan agreement only when you understand all the details – it is always better to delay signing the contract than to hurry and then regret it.
If, for various reasons, home loans for young families are not available to you, do not abandon your dream by hand! Not only banks but also non-bank lenders work in the lending industry, which also offers mortgage loans. You will find many interesting and friendly offers right here on Webacker!
Alternative home loan options
Don’t meet the criteria for a new family or a new professional and the bank doesn’t grant credit? Then look at what home loan options are available to non-bank lenders.
We at Webacker offer you to compare home loans based on the following key features:
- credit limit;
- repayment term;
- interest rate;
- time of receiving the loan.
Non-bank lenders also have mortgage loans available as well as a down payment mortgage, an offer that is not widespread in the banking industry.