You have modest income and you are having difficulty obtaining a classic mortgage loan. Don’t panic, the social mortgage loan “housing for all” is designed for you. Our lawyer explains the benefits of such a loan.
Social Mortgage Loan Concept
The social mortgage loan is a loan granted by the Walloon Society for Social Credit to finance the construction or purchase of a first home in the Walloon Region, intended for the personal use of the borrowers.
Grant Conditions
As with any loan application, the lender will conduct a thorough examination of your solvency based on the information collected in the credit application form. You will need to prove your identity (adult) and provide proof of your net monthly income.
If necessary, the lender will consult the Central Credit Register. The monthly repayment of the mortgage loan cannot exceed one-third of the borrowers’ net monthly income.
Your annual income cannot exceed €53,000. You will also need to provide the title deed or the sales agreement of your home. The market value of the home must be less than €204,000. An expert will be appointed for this purpose if necessary.
The regulation applies to any building used for residential purposes. The area of the premises used for professional purposes cannot exceed 20% of the living area.
The loan term ranges from 10 to 30 years, with the mortgage loan to be fully repaid by the age of 70. The applicable interest rate will correspond to the scale of the corresponding income category. Rate reductions are possible in areas designated as real estate pressure zones, revitalization zones, or for the purchase of social housing.
Once the file is complete
it receives a registration number. The credit contract must be signed within 100 days of the registration date.
Mortgage loans are repayable in constant monthly installments. A deed of assignment of debt must be granted in favor of the lender.
The borrower will be required to insure the home against fire and to take out a remaining balance insurance.
If the loan is intended to finance renovation or other works, they must be completed within two years of signing the contract.
If you wish to sell your home, you must fully repay the loan amount. A re-employment indemnity of three months’ interest will be due on the capital repaid early.
Formalities
All applications must be submitted to a social credit desk of the Walloon Society for Social Credit.
The processing fee is around €25. You should also expect to pay €260 for the home appraisal. These amounts will not be refunded if the loan application is rejected.
In addition, a solidarity contribution to the Walloon Region of 0.20% of the loan amount is required. Any loan modification in progress also incurs a fee of €150.
Appeals
If the Walloon Society for Social Credit refuses the requested loan, you have a period of 30 days to submit a written appeal to the President of the Board of Directors of the SWCS.
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