First Time Real Estate Purchase Help: everything you need to know
CAF aid
The different types of loans
In terms of assistance for first-time buyers when they first buy real estate, let's also mention the different types of loans that exist. Their conditions and options allow many people to start buying real estate.
The Action Logement loan[1]
Do you work in a non-agricultural private sector company with at least 10 employees? Perhaps you can benefit from a loan at a preferential rate. “Depending on the geographical area, the loan amount may be between 7,000 and 25,000 euros. [...] The loan term is free, but cannot exceed 20 years. This loan is subject to the agreement of the company according to an annual envelope defined by regulations and under conditions of grant [...]”. Note: for employees in the agricultural sector, there is the agri-accession loan. To find out if your company offers this help, contact the human resources department.
The social insurance loan
The PAS is dedicated to modest households who want to:
make a first real estate purchase in new or old buildings with or without rehabilitation works; have them built; or carry out improvement works for a minimum amount equal to 4,000 euros.
The PAS is awarded based on income in year N-2. It can be repaid over 5 to 35 years and limits have been set on borrowing rates.
The PTZ+
Entered into force on 1Er January 2011, the PTZ+ evolves every year and is reserved for first-time buyers, subject to resource conditions. It is granted in various situations: purchase of new housing (zones A or B1 until December 31, 2021 and zones B2 or C until December 31, 2019), purchase of housing treated as new (premises that have become housing...) or purchase of old housing (social housing, with improvement works...) or purchase of old housing (social housing, with improvement works...). With no administrative fees and refundable without interest, PTZ+ can finance up to 40% of the value of the property.
The PSLA (rental accession social loan)
The PSLA can be granted to legal persons as well as to organizations (public housing...) and other real estate developers. A real estate purchase made via this loan is done in two stages. First of all, the buyer integrates the home as an accessing tenant. Then, if he wishes and if he respects the conditions, he then has the option of buying the property.
The PEL (home savings loan)
The PEL was developed to allow French men and women to build up savings that were locked up for no less than four years. At the end of these four years, a loan at a preferential rate can be granted. Its maximum amount is 92,000 euros. Whoever takes out this loan has 2 to 15 years to repay it.
Did you know that? For your first real estate purchase, you can also benefit from VAT at 5.5% - instead of 20% - on the price of your new property. However, the accommodation must be located in the ANRU zone (National Agency for Urban Renewal) and in the QPV zone (Priority Urban Policy District).
Banks, cities, regions...
Young couples or young singles who want to own property? These are popular targets for banks that do not hesitate to offer them attractive pricing conditions. To help young people, they rely in particular on lower rates.
Banking institutions are not the only ones thinking about first-time buyers. Many cities and regions have also put in place mechanisms to help them achieve their dream of becoming homeowners. To find out more, you can contact your town hall as well as the Regional Council or via the community of communes.
[1] https://www.actionlogement.fr/le-pret-pour-l-acquisition-ou-la-construction-dans-le-neu
