Depending on the nature of their real estate project, their means test and sometimes their profession, borrowers can claim several types of mortgage. The Social Accession loan, for example, is aimed at households with modest incomes to help them gain access to property, for the acquisition of new or old housing (with or without work), while allowing them to touch the APL. Explanations.
What is the Social Accession loan?
The PAS, or Social Accession loan, is an assisted mortgage. Its objective: to support households wishing to access property, as soon as their income is considered modest and the housing acquired will serve as their main residence. To this end, the PAS allows borrowers to finance their entire purchase transaction, excluding notary fees, with a repayment duration staggered between 5 and 25 years (and up to 35 years in some cases).
In addition, the PAS loan automatically opens the right to the APL (Personalized housing assistance). So the monthly payments are calculated according to the housing aid to which the borrower can claim. And that it is therefore easier to obtain your mortgage if you already touch the APL.
The Social Accession loan can finance three types of real estate operations:
- An acquisition in the new (including to buy land and build);
- An acquisition in the old (without work obligation);
- The financing of energy improvement or renovation works (for a sum greater than $ 4,000).
Benefits of the Social Accession Loan
If the Social Accession loan is attractive, it is because it gives entitlement to several advantages. The first of these is the possibility of receiving APLs during the repayment period of the credit, which makes it possible to add a non-negligible monthly sum to your loan.
The second advantage is lower costs: a PAS loan comes with reduced notary fees and application fees of less than $ 500, whatever the case.
Who can benefit from the PAS loan?
Are concerned by the Social Accession loan French households (or foreigners as soon as they are in possession of a residence permit) wishing to finance the acquisition of a main residence, and benefiting from income below certain ceilings of resources.
On 1 January 2016, the ceilings in question were fixed as follows:
- In zone A: from $ 37,000 (for one person) to $ 118,400 (for 8 or more people);
- In zone B: from $ 30,000 to $ 96,000;
- In zone B2: from $ 27,000 to $ 86,400;
- In zone C: from $ 24,000 to $ 76,800.
(These ceilings relate to taxable income, after deductions and pensions. The area to be taken into consideration is that of the property that the borrower plans to buy.)
Finally, there is also a low ceiling. Indeed: the income declared must not be less than 1/9 th of the total cost of the credit at the time of the Social Accession loan request. Thus, to obtain the sum of $ 200,000, you must have declared at least $ 22,222.
Note that only banks and lending institutions that have signed an agreement with the State are authorized to offer a PAS.
Loan without contribution
The Accession Sociale loan can finance the entire real estate transaction and up to 110% of the necessary sum, in the event that the borrower does not have a personal contribution. Please note: the loan does not cover notary fees.
But beware: this is only possible if the lending institution deems the borrower able to repay his credit without failing. This implies two things: only people with a stable professional situation can benefit from it (employees on permanent contracts in particular); and the borrower must have a good financial profile (no consumer credit in progress, good savings profile, etc.).
PAS is no longer reserved for main residences
Basically, the Social Accession loan only concerns the acquisition of a main residence. However, the rule changed slightly in 2016: since then, it has been possible to change the destination of the accommodation acquired through a PAS loan and to make use of it other than that of the main residence (rental, commercial or professional premises, second home, etc.). However, this possibility does not open until 6 years after the date of release of funds.
You should also know that the rental of the property is authorized before the expiration of 6 years, under certain conditions:
- If the owner or one of the co-borrowers cannot live in the accommodation following a death, a divorce, the dissolution of a PACS or a professional transfer (in this case, the place of the activity must be separated from the property of at least 50 km, or cause travel time greater than 1 hour 30 minutes).
- If the owner or one of the co-borrowers is disabled, is experiencing a period of unemployment, or if he bought the property with a view to his retirement or a return from abroad (DOM- TOM included).
- To these conditions, two others must be added concerning the rental: on the one hand, it must be empty (no furnished or seasonal rental financed by a PAS loan); on the other hand, the tenant’s rents and resources must remain below a ceiling determined by the National Housing Agency.
By respecting these prerequisites, it is possible to rent out accommodation purchased via a Social Accession loan.