When buying a house we have two options: to buy a property already built or to build from scratch the house of our dreams. If you decide for the second option you must have developable land, licenses, permits, plans... and above all money to be able to carry out your project.
The price per square meter is getting more and more expensive, so more and more people are asking for a mortgage to be able to pay the costs of becoming an owner. Although it is a very frequent alternative, the reality is that the majority of citizens do not know the type of mortgages that exist as well as their operation.
For this reason, today we will introduce you to a type of mortgage that is not so well known, the self-promoter mortgage.
What does the self-promoter mortgage consist of?
Applying for a mortgage on a property already built is relatively simple since it is the most common option. However, when a mortgage loan is requested to finance the construction of a home, the process tends to become more complicated.
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To try to facilitate this process, the self-builder mortgage was created, which is similar to conventional mortgages in general terms, but differs mainly in that the capital increases as the house progresses through the construction phase. They do not lend you the totality of the money directly, but it is progressive.
How much money do you get with a self-promotion mortgage loan?
Normally this type of loan covers up to 80% of the construction budget or the appraised value of the future home. Therefore, you should have at least a sufficient amount of money to be able to pay up to 20% of the construction and other expenses related to the self-build.
What requirements do I have to meet to apply for a self-builder mortgage?
In order to take out a self-builder mortgage you must have specific documents and licenses. The requirements that you must fulfill are:
- Certificate of ownership of the land : you will have to present the simple registry note and the plot of land must be classified as urban land without charges.
- Construction license: document issued by the town hall of the municipality in which you want to do the work.
- Project elaborated by an architect and endorsed by the College of Architects of your region.
- To have a budget of execution: the budget must be prepared by the company that will carry out the work.
- Energy efficiency certificate: this certificate will be given by the construction company in one of the construction phases.
Fulfilling all these requirements can be a complex task, as well as getting a mortgage for self-promotion at a good price. So we recommend that you negotiate with several banks to have more options. If you have savings we advise you to pay part of the building to improve the conditions and finally to build a sustainable house as it will help to lower the interest rate.