Can You Get A Home Loan When Selling Real Estate In Your Family?

When buying a property, family members may sell or buy the property. An important question is, can you get a home loan when you sell a family property? This is not, in principle, an obstacle to taking out a home loan. There are several reasons for this kind of real estate purchase. One of the most common reasons is that many people inherit a property and one of them wants to buy out the others. Another common cause is divorce, and in such cases, the couple may have originally purchased the common property on credit, so they are both debtors.

General conditions for taking out a home loan:

 

Personal conditions

  • 18+
  • certification of at least the minimum wage
  • legal capacity
  • life insurance (over a certain age or if you are borrowing alone)

 

Real estate collateral conditions

Real estate collateral conditions

  • ownership sheet
  • appropriate value
  • the property must have a final permit for use
  • the current state of the property should be as stated on the property page
  • there is no pending court action on the property
  • independently marketable
  • meet bank-specific value and sellability criteria
  • relief or acceptable burden

Most banks give mortgages even if the buyer and seller are close relatives.

However, the lending institution is wondering the reason for the transaction. This is because the bank wants to filter out the ostensible sales, that is, the family wants to make money. If that’s the only thing, it’s better to take out a mortgage for free use, as it can take out a loan without jeopardizing your ownership. The only difference is that you can choose from fewer bank offers and your interest is higher than your home loan.

Banks will always be informed of the reason for the transaction.

There is a financial institution that only gives credit on terms. For example, it only lends to buy out co-owners, and therefore insists that the buyer must own the apartment. It is also a common condition that there is no credit or other burden on the property. There is also a credit institution that stipulates that the purchased owner cannot reside in the property after the sale.

In a family sale, the parties may agree to a price lower than the transaction value.

In a family sale, the parties may agree to a price lower than the transaction value.

This does not prevent you from obtaining a home loan. However, there is a bank that, in this case, stipulates that the contract of sale states that the seller will not subsequently make a claim.

Divorce is also a common cause of family sales.

In the case of a life partner, after the break-up of the relationship, one of them would buy the other, partly or fully, from the jointly owned apartment. At this point, they will both be co-debtors, meaning they will need to buy a loan, and only one of the parties will need a new home loan.

You may lose certain benefits in family transactions. This is the case, for example, of a CSOK with a better interest rate than the market, with a fixed interest rate of up to 3%, because in this case the sale within the family is the exclusive reason.

The Jean Valjean home loan calculator is a great way to compare home loans if you don’t have time to go through the banks. In addition to seeing a realistic overview of home loan offers, you can save a lot of time by going to the bank of your choice. Using the calculator is very quick, easy and does not involve any obligation. You need to enter the requested information, and then the calculator will list the credit institutions that you may have a chance to borrow. After that, all you have to do is choose the one you like the most.

 

Leave a Reply

Your email address will not be published. Required fields are marked *