The Contracted Loan (PC) is a loan whose rate is capped. Unlike the Social Accession Loan (PAS), it is granted without any means test by all financial institutions that have entered into an agreement with the State. On the other hand, like the SAP, it is entitled to Personalized Housing Assistance (APL) , which is conditioned by the income of the borrower (s).
Zoom on the operating rules of this credit.
What types of property can be granted?
The loan is a solution intended to finance the purchase of a principal residence or a rental investment if, and only if, the tenant lives there at least 8 months in the year. Specifically, it is possible to subscribe a PC for a house or an apartment, in the new or in the old, but also for a construction.
This source of financing can also allow the realization of works of improvement, enlargement, saving in energy or adaptation to the needs of a handicapped person in housing of 10 years of age but also the purchase of ‘a terrain,
What are the constraints associated with the PC?
If the PC can facilitate the homeownership, it still generates some constraints, as to the housing involved in the operation. It can not become a professional or commercial premises, a second home, an accessory related to a contract or be used as a furnished or seasonal rental, lasting more than 4 months per year.
An old property must also meet specific requirements :
– living space: 9 m² for one person and 16 m² for two. Then just add 9 sqm for any additional person.
– standards of habitability: in case of works, they must be realized within 2 years. For housing over 20 years, it must be referred by a professional, whose findings will be appended to the PC application.
In addition, by subscribing to the Agreed Loan, the borrower (s) undertake (s), from the date of acquisition or completion of work, to settle there within one year . Note that it is possible to postpone this move to 6 years, if the property was purchased for retirement or to live on its return from a DOM or a TOM.
How much can the bank lend with the PC?
Subscribed for a period of between 5 and 35 years, the PC can cover the entire real estate transaction , with basic interest rates, controlled by the public authorities, to which banks can add their margin. The latter representing the trading space, to play the game of competition.
Today, this rate is higher than that of a conventional bank loan.
It keeps its interest to the extent that it allows reductions on the application fees and the inclusion in the credit operation of expenses related to construction operations (architect, study office fees) and related taxes.
If necessary, the loan can be supplemented by a PTZ, a loan or housing savings account (PEL and CEL), a Housing Action Loan (formerly 1% housing), a loan for civil servants, but also a grant from the ANAH (National Agency for Housing), personalized housing assistance (APL) and a loan supplement authorized to some French returnees from overseas.