If you are thinking of building your ideal home, or remodeling it, instead of buying one that may not be perfect for you, you may be interested in knowing the best home self-construction loans that you will find this 2022 in Chile. If your project is to build or remodel your home and you are looking for a loan that suits your needs, it is best to start the search for the best loan for self-construction of a home in 2022. However, we will take some time to remember what is a home construction loan?
What are self-build credits?
Self-construction loans are a type of mortgage loan that the bank, or another financial entity, grants to build or remodel a home for an individual. This type of credit is usually short-term, and on many occasions, it is not necessary to repay the amount of the credit until the reform or construction is finished, but that depends on the entity that grants you the self-construction credit.
As in all processes, the application for a loan requires a series of requirements, let’s see the general requirements, to request the best credit for self-construction of housing 2022.
Requirements to apply for a mortgage loan:
When requesting a self-construction mortgage loan, the following requirements must be taken into account:
- Minimum age: from 18 to 21 years depending on the bank.
- Nationality: Being Chilean or foreigner, with legal residence in the country.
- Background: They must present a good business background, not register current debts or protests. And not be in Dicom.
- Work seniority: At least 1 year of work seniority or start of activities if they are independent workers. For variable salaries, your monthly earnings will be reduced by 20% or 30% to obtain a monthly insured amount. As there is a requirement for banks, it is an advantage for those who work in a dependency relationship with fixed earnings.
- Salary: The dividend to be paid cannot exceed 25% of net income. For example, if they earn 1 million pesos, they must have 250 thousand pesos to pay the fees.
- Savings: They must have money to pay for the foot. Banks do not grant 100% of the mortgage loan, so the applicant must cover the rest. The banking entities can grant them up to 80% of the value of the home, maybe in certain cases up to 90%, if they have a high salary.
- Other documents: Some banks may request proof of marital status or current address.
- Appraisal: The bank will make an appraisal of the home you want to buy and, from that moment, you can request extra documents, property or other documentation. By meeting that at the same time they will be able to meet the requirements to buy a home.
How does self-construction credit work?
To apply for a self-construction loan, it is normally necessary to have land. On which it is feasible to install drinking water and sewerage. Here are the steps to apply for a self-construction loan:
- The first step will be to elaborate the project
- Present the project to the bank
- The bank evaluates the project and gives its response
- If approved, financing begins with link trade credits.
- The credit amounts will be released as the project advances in its different construction phases.
- Once the construction has been completed and the municipal receipt has been obtained. The self-construction loan debt can be transferred to a mortgage loan.