Starting this week, customers can submit their applications for credit. The Guarantee Fund has allocated money to the registered banks in the First House program.
16 banks have registered in the credit program First House. The banks involved in this program will grant about 30,000 loans. Currently, only the ING bank has increased the minimum advance for First Home, from 5% to 10%.
To get a First Home credit, first, the applicant must submit documentation proving his revenues. Usually, in the case of employees, they are:
• Income statement
• Copy of the contract of employment or employment book
• Copy of tax record
• Copy of marriage certificate (if applicable)
• Notarized statement about the fact that the applicant (and his wife,where applicable) is not the owner of a property, partial or full, and does not have an ongoing mortgage.
People who receive income from rents, dividends and independent activities, must submit specific documents proving the obtaining of these revenues.
Besides the documents attesting the revenues, are also needed acts considering the purchased property:
• Preliminary contract of sale or preliminary construction agreement with a specialized company
• Ownership document on the property / the land to be build on
• Excerpts from cadastral documentation.
Depending on the purchased property’s situation, the banks may require subsequently additional documents, besides of the originally requested ones.
The total amount of guarantee will be of 2.67 billion lei, consisting of the 2.5 billion lei – new amount allocated by the Government, and the remaining 175.5 million lei representing the difference that remained unallocated or unused from 2016.
Through the First House program, the state guarantees 50% from the amount of a loan for a new property which values (the most) 70.000 euros, and 40% for an old property (over 5 years) that values (the most) 60.000 euros.