In addition to the $ 10 million gift CSOK grant, you can apply for an additional $ 10 million of backed-up loans if you are looking to buy new builds or build one yourself.
But on what terms do we get credit from the bank? Is the $ 10 million grant sufficient for self-employment? At what price will the banks report the new apartment? How much credit can we borrow on the basis of family income?
Which bank will accept pre-committed children?
Why does it matter which bank we borrow from when we have the same interest everywhere because of state aid?
Since most banks have come out with their own CSOK-backed loan structure, I asked the blog’s loan expert to write a summary of what to look out for and how much credit you will get.
(A good tip: Before you even start looking for a home or thinking about a construction site, talk to a credit counselor about your chances. What credit do you get if you need to take out more than the $ 10 million loan, on what terms, etc. Do not find that after two months of feverish planning you will not get enough credit.)
So, here’s his writing:
It is not enough to fulfill the conditions laid down in the government decree to draw up a maximum of HUF 10 million of state-supported loans, but also to meet the expectations of the lending financial institution.
These expectations are the same as for market-free loans without government support. For example, if a financial institution expects a 30% equity requirement for a mortgage loan without additional collateral, the same requirement applies to an interest-subsidized loan. In addition, if 40% of the total household income is allowed to be charged, this is the case even when applying for interest-subsidized loans.
Credit evaluation uses exactly the same algorithms as any market loan
However, due to CSOKs and interest rates that are more favorable than market prices, these standard expectations, in practice, set the limits of creditworthiness quite differently, so it is definitely worth reviewing banks’ expectations in the light of these.
Let’s start with 3 simple prerequisites :
No one on the KHR’s bad debtors list can get credit, no matter when or why it was added to the list. Not only the borrower, but also the borrower and the debtor involved in improving the creditworthiness of the borrower, can not be guarantors of a “bar list”. (Negative KHR status is not an excuse for applying for CSOK)
Only those who apply for and qualify for the 10 million Chok can apply for the discounted $ 10 million loan.
It is clear from the above, but it is worth pointing out that the 3% Home Improvement Loan can only be applied for to buy or build a new home and meet the same conditions as the $ 10 million CSOK.
Anyone who has had a Home Improvement Loan before (at 6% interest) cannot claim the 3% OTK
How much self-sufficiency will be needed?
There is a significant difference between individual financial institutions as to whether CSOK is considered to be self-sufficient.
There’s no where. In this case, at least 20% of your own funds will be required (unless we provide additional cover).
There is where only the CSOK required for pre-existing children is considered to be self-sufficiency, and there is also where the advance support is considered. (There is a high risk that an adopted child will not be born and that $ 15-20 million will have to be paid out suddenly. Therefore, many banks are reluctant to accept CSOK applicants with adopted children.)
There are cases where the financial institution expects a certain amount of own funds depending on the transaction / client rating.
If CSOK is considered to be self-sufficient, you can buy real estate for as little as $ 50 million without contributing to the purchase price of up to HUF 1.