A zero rate loan is a very attractive type of credit since you only pay back the borrowed capital. This state-assisted loan allows you to finance part of the acquisition or construction of your home.
But to benefit from it, it is necessary to respect a certain number of conditions which we will detail to you in this special file. So you can easily apply for a zero rate loan and quickly get the funds to complete your project!
The conditions for obtaining a zero rate loan
To obtain this credit with such an attractive rate, you must fulfill many conditions while ensuring that your project complies with the provisions of the zero rate loan.
Projects eligible for the zero rate loan
One of the main points to get a zero rate loan is to have a project that is itself eligible. These are specified by several articles of law presented in the construction code of the house. For if the free loan is possible, thanks to the help of the French It tats that supports the interests with banks that have concluded with it a settlement. For your project to be valid, it must report to the purchase or construction of your future main residence.
In addition, if you acquire an old home, it will be imperative that it is located in a rural area and that major renovations are necessary. To be eligible for the PTZ, old housing must also become the main residence of the borrower at the latest one year after its acquisition or the end of the work (possibility of flexibility in some cases).
Another imperative: do not rent the accommodation during the 6 years following the payment of the loan. If you have decided to build your future home, you can also include in the financing of your project the purchase of building land.
Good to know: zero rate loan and exclusions
The acquisition of so-called “furniture” furniture, registration fees, and notarial fees are excluded from the total cost of the transaction.
The means test
In order to be able to apply for a zero rate loan, you must meet a number of conditions regarding your personal situation and your income. There are ceilings which depend both on the number of people in your household, but also on the area of your future home.
These areas are defined by the decree of September 30, 2014, which allows you to classify your place of housing according to the tension of the local real estate market. The aim is to adapt the criteria requested to the situation so that you can still borrow when the market is tenser; this is particularly the case.
In zone A bis and in zone A, for example, the resource ceiling is set at:
- 37,000 dollars if the accommodation has 1 occupant;
- 51,800 dollars if the accommodation has 2 occupants;
- 62,900 dollars if the accommodation has 3 occupants;
- 74,000 dollars if the accommodation has 4 occupants;
- 85,100 dollars if the accommodation has 5 occupants;
- 96,200 dollars if the accommodation has 6 occupants;
- 107,300 dollars if the accommodation has 7 occupants;
- 118,400 dollars if the accommodation has 8 or more occupants.
The amount of the resources takes into account both the borrower’s tax income and that of the other occupants if these are not attached to the borrower’s tax household. The amount withheld is the higher of the following two:
- the total tax revenue of the occupants of the dwelling for year N-2;
- the total cost of the operation divided by 9.
To find out the area in which your municipality is located, go to the simulator on the official website of the French administration. Note that from 2020, zone B2 and zone C will no longer be affected by the PTZ. Only residents of zones A, A bis and B1 will still be able to benefit.
How to Obtain Zero Rate Credit
To obtain zero-interest credit, you must first verify that you are eligible and that your project is as well. To make the request, you will have to turn to a bank or a financial institution has signed an agreement on this subject with the French State (there are twenty in total).
When building your file, you will have to inform your personal situation (identity, resources) while providing supporting documents (identity card, family book, salary slip).
You will also have to specify your request with all the elements concerning your real estate project (new, old, land, construction area). Finally, you will also need to provide the necessary supporting documents to ensure that this project aims to acquire your main residence (rent receipts from the last two years or accommodation certificate free of charge).