Welcome home with social home ownership

In France, almost half of all renters would like to become homeowners. Social home ownership is the gateway to this goal. The French government, local authorities and the real estate industry are working hand in hand to offer housing at regulated prices, below market rates. Numerous schemes are available to help households finance their purchase. The only condition is that the income ceiling for each type of home purchase must not be exceeded.

A PAS to get into your home

The Prêt d'Accession Sociale (PAS) is just one way to take the first step towards home ownership. This loan helps you to become the owner of your principal residence (by buying it or having it built) or to carry out work on an existing property. It can finance 100% of the cost of the property transaction, including local and building taxes, inventory and insurance costs, and the cost of any work required... However, notary and mortgage fees are not taken into account. To qualify, applicants must meet certain income conditions, which vary according to the location of the property and the number of occupants.

Are you an A, B or C?

Zone A: Paris conurbation, Côte d'Azur, French Genevese, large provincial conurbations
Zone B1: metropolitan areas with more than 250,000 inhabitants, the greater Paris suburbs, the Côte d'Azur region, some high-price metropolitan areas, the French overseas territories, Corsica and the islands.
Zone B2: conurbations with more than 50,000 inhabitants, expensive coastal and border towns, the Paris region.
Zone C: rest of France.

Home ownership loans with Action logement

For over 65 years, Action Logement has been the preferred partner of employees wishing to make their dream of home ownership a reality. This is even more true today, with the new version of its home-ownership loan. If you are an employee of a non-agricultural private company with 10 or more employees, Action Logement can lend you, at 0.5% (excluding insurance), up to 40,000 (up to a maximum of 40% of the total cost of the transaction, except in the case of HLM sales and Bail réel solidaire home purchases). Who could ask for more!
Granted without application fees, guarantees or sureties, the homebuyer's loan can be requested for the construction or acquisition of a property as a principal residence, new or old, with or without work. This loan can also be granted for social home ownership (including HLM sales), for home ownership under a "bail réel solidaire" (joint real-estate lease), or for the purchase of a new home.This loan can also be granted for social home ownership (including HLM sales), for home ownership under a tenancy agreement (bail réel solidaire), or for the extension or elevation of a home by the owner, or to make premises fit for habitation.
In addition to means-testing, the loan must be covered by an insurance policy covering death, total and irreversible loss of autonomy and incapacity for work. Borrowers are free to take out insurance with the insurer of their choice, as long as the level of cover is equivalent to that offered by Action Logement. Finally, in the case of an existing property, the DPE(Diagnostic de performance énergétique) must be classified between A and E.

Addresses

For more information on social home ownership schemes:
- www.anru.fr/le-programme-national-de-renovation-urbaine-pnru
- www.actionlogement.fr/
- www.ecologie.gouv.fr/accession-sociale-propriete

Dare zones

In the long list of subsidies for home ownership, consider taking a detour into so-called "priority" neighborhoods and ANRU (Agence Nationale de la Rénovation Urbaine) zones. Behind these somewhat "obscure" terms lies the opportunity to make a good deal. To promote access to home ownership while revitalizing certain districts, the law allows buyers of new housing built in ANRU zones or in priority urban districts (QPV) to benefit, under certain conditions, from a VAT rate of 5.5% (instead of 20%). The property must be located in a district covered by an urban renewal agreement signed with the ANRU, or at a distance of less than 500 meters from the boundary of such districts.
The buyer must be a first-time buyer and occupy the new home as his or her principal residence. They must also undertake to keep the property for a period of 10 years, failing which they will be required to repay all or part of the tax benefit received. Last but not least, the buyer's income must meet certain income ceilings, which vary according to the composition of the household and the zone in which the property is located.

Combine assistance

You can combine the reduced VAT rate with certain subsidized loans such as the Prêt à Taux Zéro (PTZ), Prêt Accession Sociale (PAS) or Prêt Action Logement (provided all the required conditions are met). On the other hand, 5.5% VAT cannot be combined with tax exemption schemes such as the Pinel law.

Marie-Christine Ménoire.