How to get a loan to buy and repair a house?

Conditions for getting a policy bank loan for buying and repairing a house:

According to Article 16, Decree No. 100/2015/ND-CP, subjects eligible for policy bank loans to buy or repair houses include:

- People with revolutionary contributions according to the provisions of the law on preferential treatment for people with revolutionary contributions.

- Low-income people, poor and near-poor households in urban areas.

- Workers working at enterprises inside and outside industrial parks.

- Officers, professional non-commissioned officers, technical non-commissioned officers, professional soldiers, workers in agencies and units of the people's police and people's army.

- Cadres, civil servants and public employees according to the provisions of law on cadres, civil servants and public employees.

- Students of academies, universities, colleges, vocational schools; students of public boarding schools for ethnic minorities are allowed to use housing during their study period.

Conditions for borrowing from policy banks to build new or renovate and repair houses are as follows:

Borrowers must not be subject to regular income tax according to the provisions of the law on personal income tax; in the case of poor or near-poor households, they must meet the standards for poor or near-poor households according to the Government 's regulations from time to time.

Must make monthly savings deposits at a policy bank with a minimum deposit period of 12 months from the date of signing the Credit Contract, the minimum monthly deposit amount is equal to the borrower's average monthly principal repayment.

Have sufficient documents proving the subject, housing status, residence conditions and income conditions to enjoy social housing policies according to regulations.

Have income and ability to repay debt as committed to the policy bank.

Have a loan application to build new or renovate and repair a house, including a commitment from the individual and household members who have not received preferential loans to support social housing at credit institutions.

Have a Certificate of land use rights, house ownership rights and other assets attached to land at the district level where permanent residence is registered, issued by a competent State agency in accordance with the provisions of the law on land.

There is a cost calculation plan, there is a construction permit in case a construction permit is required according to the provisions of the law on construction; In case there is a construction permit with a term according to the provisions of the law, the loan will be considered in accordance with the duration of the project.

Have equity capital of at least 30% of the borrower's cost calculation plan.

Secure loans with the value of land use rights and assets attached to land or other assets according to the provisions of law and regulations of the policy bank.

Thus, your rejection may be because you are not eligible for a loan to buy or repair a house, or you do not meet the conditions for a loan.

Interest rates for social housing loans will be 3% lower than the average.

The State Bank has submitted to the Government a draft resolution amending the VND120,000 billion loan package for social housing. Accordingly, the interest rate for social housing loans will be reduced by 3% compared to the average interest rate of banks.

Mr. Dao Minh Tu - Deputy Governor of the State Bank - said that he has submitted to the Government a proposal to reduce the interest rate for loans to buy social housing by 3% - Photo: SBV

The information was announced by Mr. Dao Minh Tu - Deputy Governor of the State Bank - at a press conference to inform about banking activities in the first 6 months of the year and deploy tasks for the last 6 months of the year, organized by the State Bank on July 23.

Specifically, the social housing loan program of 120,000 billion VND is currently being lent by four state-owned commercial banks. Up to now, four other joint-stock commercial banks have also registered to participate with 5,000 billion VND/bank.

Thus, the total capital of this program reaches 140,000 billion VND.

To support borrowers buying social housing, speaking to the press, Mr. Tu informed that the State Bank has proposed that the Government reduce the interest rate for home loans by 3% compared to the average interest rate of 4 state-owned commercial banks.

Thus, the proposed incentive rate will increase by 1% compared to the current rate of 2%. The loan interest rate determination period is 3 months/time, shortened by half compared to the current rate.

"In addition, the preferential loan period of the program is also proposed to be 5 years instead of 3 years. However, after the next five years, the lending interest rate will continue to be reduced, depending on the economic conditions at that time, but the minimum reduction is 1-2%/year. It is not true that after 5 years, the lending interest rate will be floating. Thus, people who borrow to buy social housing will be worried" - Mr. Tu emphasized.

According to Mr. Tu, the preferential loan policy for enterprises building and implementing social housing projects is still applied as it is now.

In addition, the State Bank encourages banks and large economic groups to promote social housing, creating conditions for low-income people to borrow to buy social housing.

Providing more information about the results of implementing the social housing loan policy, at the press conference, Ms. Ha Thu Giang - Director of the Department of Credit for Economic Sectors (State Bank) - said that up to now, 34/63 provinces and cities have announced 78 social housing projects eligible for this credit package.

The capital disbursed by commercial banks was 1,344 billion VND, of which 1,295 billion VND was for investors and 49 billion VND was for home buyers.

The difficulty is that the number of social housing projects is still limited. Among the 78 projects in the list of projects eligible for loans under this credit package, many projects do not need loans.

In addition, commercial banks reported that there are projects that are still stuck in legal procedures such as site clearance, land use conversion, etc., so they are not eligible for disbursement.

Source: https://diaoc.nld.com.vn/lam-the-nao-de-duoc-vay-mua-va-sua-nha-196240731104210736.htm