Helping first-time buyers become homeowners

The zero-rate loan for interest-free borrowing

If you've never owned a home before, the zero interest rate loan (PTZ) is for you. This free loan (the recipient pays no interest on the sums granted) enables the purchase of a new home or an old home with work carried out. The amount of the loan depends on the composition of the household, the location of the property and the nature of the project. The loan repayment period may not exceed 25 years. Depending on household resources, repayment may be deferred for 5, 10 or 15 years.

Unlock your home savings

The Plan d'Epargne Logement (PEL) and Compte Epargne Logement (CEL) allow you to take out a low-interest loan to buy or build a new or existing home. Holding a PEL will be an additional point when considering your loan application. It demonstrates your ability to save and your desire to build up a personal deposit for your real estate project. Generally speaking, financial institutions require a deposit of at least 10% of the planned transaction. And don't forget the government bonus for taking out a loan.
Good to know: a member of your family (children or grandchildren, parents or grandparents, brothers and sisters, nephews and nieces, uncles and aunts, and members of your spouse's family) can assign their loan rights to you.The assignment is made on a one-off basis to a single beneficiary. For a PEL holder to transfer his or her rights, the beneficiary must have held a PEL for at least three years.

Get help from your employer with Action Logement

Any employee of a non-agricultural private company with more than 10 employees can apply to their employer for an Action Logement loan for the construction or purchase of a home. This is even more the case today, with the new version of its accession loan. With a maximum amount of €40,000 (up to 40% of the total cost of the operation), the interest rate is 0.5% (excluding compulsory insurance). 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 forsocial home ownership (including HLM sales), for purchase under a social lease, or for extension of a property. el solidaire, or for the owner to extend or raise a property, or to make it habitable, up to a maximum of €20,000 worth of work. 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.

Take out a PAS for home ownership

Your income won't be an obstacle to home ownership thanks to the Prêt d'Accession Sociale (PAS). Granted on a means-tested basis to people on modest incomes, it enables them to buy or build a home, buy an older home, and carry out home improvement or energy-saving work costing a minimum of €4,000. The PAS can finance the entire project (with the exception of notary fees). To qualify for a PAS, the borrower's resources must not exceed a certain ceiling. The bank will also take into account the location of the property and the composition of the household occupying the property.

The Prêt social de location-accession to buy the home you rent

Under certain conditions, the Prêt social de location-accession (PSLA) enables low-income tenants to become homeowners on particularly advantageous terms. The PSLA mechanism is unique in that it comprises two compulsory stages:

• a rental phase, of variable duration (between 1 and 5 years), during which the first-time buyer who occupies the home pays the operator a rental fee. This is made up of two parts: one is due as compensation for the use of the home, and is therefore a rent. The other is the "acquisitive" part, which represents savings that can be deducted from the price of the home. These savings contribute to your down payment;
• an option exercise and purchase phase, enabling the tenant to decide whether or not to go ahead with the purchase. If the tenant does not exercise the option, the seller retains the portion corresponding to the rental fraction.

Knock on every door

In addition to the "classics" such as the PTZ and the PEL, there are many other forms of assistance that you might not think of, but which can help you make ends meet. Some local authorities give a financial boost to home ownership. Whatever form they take (subsidies, loans, etc.), these grants are often means-tested and can be combined with a PTZ loan. If you're buying an older home in need of major renovation, you can turn to theAnah (Agence nationale de l'Habitat). This organization can help you finance part of the cost.
But to give yourself the best chance of success when negotiating with the lending institution, don't forget to refine your "profile" and make sure you have a minimumdown payment. These are the arguments that will weigh in the balance.

Marie-Christine Ménoire