Residential Construction Reform and Construction Credit
How do I get Construction Reform and Building Credit? You are building your own house but the money is gone, and now what to do in such a situation? Luckily there are in the financial credit market countless banks willing to make a financing for retirement or financing for construction , the first is specific for who wants to remodel a property and the second for who wants to build. Both are for those who do not have all the capital needed for the venture.
Not all people are aware of the existence of this specific line of credit for retirement and construction financing, so it is so little solicited or sought from credit institutions or banks. There are several facilities that this type of financing offers: in credit for retirement and construction of real estate, the interest rates offered are low, in this case we are comparing with loans financed by common financials obtained in the credit or personal loan.
Design with the Specifications
To get the credit financed for retirement it is necessary to prepare a project with the specifications of the reform. All documentation of the property must be completely up to date with all government agencies. At first without these two items informed would not be feasible to carry out any type of credit for retirement or construction .
The project seems to be the most complicated part of any process, to have the release of money from the financing for renovation or construction , it is necessary to specify from what will be done with details in the property, including details of the budget of materials and service with estimated values.
Bureaucracy and fees
If you have all the paperwork and are willing to make the credit to renovate your residential or commercial property, the good news is that the interest rate charged on the operation revolves around 5% to 9% pa (year), this variation depends of the financial institution. Caixa Econômica Federal has some lines of credit (FGTS-Individual Letter of Credit, Monumenta Privado Privados, Carta de Crédito SBPE and Pró Cotista) to finance reforms and constructions with the best interest rates among all.
But not everything is flowers, in this type of credit, bureaucratic limitation is often a considerable drawback to get credit financing for retirement or construction. In order not to be surprised at all, be aware that the credited amounts of the financing will only be released into the bank account according to the construction schedule, ie the money is not released all at once.
After requesting the loan to reform and verify the documentation, there is still another stage where the bank will inspect your property to be able to make an assessment to stipulate the market value of the property.
The property is given as a guarantee of payment and the amount financed for renovation will be up to 80% at 100% of the value of the property. In the case of a renovation or construction, the land and property must be in the name of the borrower of the credit for retirement, neither case may have been given as collateral in any other type of business.
Rules for financing retirement credit
1 -) Interest rates vary from 5% pa to 9% pa for the financing of the renovation or construction; It finances up to 80% to 100% of the assessed value of the property in the financing;
2 -) Interest rates are fixed or fixed (+ TR);
3 -) Insurance Mandatory – necessary to make one to obtain the credit of the retirement;
4 -) TAC and IOF – You have to pay in the contracting of the financing;
5 -) 12 months – maximum term for the end of the reform;
6 -) 20, 30 and 35 years – maximum period to pay the credit for retirement .