Problems of lending for housing construction. Builders lending

Lending to builders - a new offer from Sberbank
Construction, in terms of lending, is a “difficult” industry. Construction companies usually do not have sufficient collateral and unstable revenue, and therefore approaches to lending here should be different from other industries. The head office in the Nizhny Novgorod region of the Volgo-Vyatka bank of Sberbank of Russia solved the credit problems of construction clients. Currently, Sberbank's loan portfolio in this sector in the Nizhny Novgorod region has exceeded 9 billion rubles.

Vsevolod Vladimirovich, what approaches to lending to construction companies is Sberbank currently using?
First of all, it should be noted that we solved the difficulties with lending to the construction industry about three years ago, when we created a special structure in the bank. If earlier we tried to adjust the client to the existing banking regulations, now we are writing regulations to the best construction practices. Therefore, we easily negotiate with builders.

All construction companies can be divided into two categories: contractors and developers. If we talk about contractors, then we lend them under the concluded contract on the security of the assignment of claims. Of course, we first study the history of the company, find out what contracts it has previously executed and what financial results it has achieved. We also check the construction customer, finding out whether he can really pay for this contact. If there is any doubt, an additional deposit may be required. At the same time, we understand that the collateral value of many construction companies is incomparable with the volume of the contract being executed. Therefore, the pledge is most often perceived by us only as an additional guarantee of the enterprise's interest in the performance of the contract. If construction companies have a lot of orders, we calculate how much money the company needs and give it a loan to replenish working capital.

The second group of builders are behind-builders-developers. How are they financed?
Many Nizhny Novgorod developers already have completed projects that bring them a steady income. Sberbank issues loans secured by such objects. This is the most demanded scheme in the Nizhny Novgorod region. If the loan portfolio of Sberbank in the Nizhny Novgorod region as a whole for the construction industry now stands at 9.3 billion rubles, then loans for about 4 billion rubles have been issued against the security of existing facilities. The popularity of this scheme is explained by its exceptional convenience for construction organizations. The loan is issued for a period of up to ten years, borrowers do not have to confirm the intended use of funds, and therefore dispose of them at their discretion.

If the developer does not have collateral, Sberbank provides him with project financing against the security of the object under construction. The loan period is also up to ten years, but, firstly, the entrepreneur must contribute at least 30% of his own funds to the project, and secondly, the money is allocated strictly for the intended purpose. Construction experts of Sberbank study all the documentation for the project and in the future the bank finances only those works and materials that are indicated in the estimate agreed with us. In addition, we check the fact of execution of works on a monthly basis. All this is less convenient for developers, however, project financing in the Nizhny Novgorod region is in high demand.

In addition to financing the construction companies themselves, the Head Office for the Nizhny Novgorod Region of the Volgo-Vyatka Bank of Sberbank of Russia actively lends to their clients, both individuals and legal entities. For small businesses, we have developed the Business Real Estate product. Entrepreneurs who previously worked on leased premises were given the opportunity to purchase commercial real estate with a mortgage for five to seven years. Often mortgage payments are comparable to rental rates. Therefore, entrepreneurs have already appreciated this product, 10-15% of the entire loan portfolio of small businesses of Sberbank in the Nizhny Novgorod region are loans for the purchase of real estate. Mortgage rates and terms are also very acceptable for individuals, so up to 70% of housing in the region is currently purchased on credit. The year 2013 showed that thanks to the normal functioning of mortgage programs, developers can attract a sufficient number of equity holders at the initial stages of construction projects. Therefore, developers often need very little credit funds. It is only necessary to decide what is more profitable in this case: to bear the credit burden yourself or to shift it to buyers.
And which of the developers today is not able to get a loan from Sberbank?

The biggest obstacle to obtaining a loan is the tarnished reputation of a potential borrower. If the developer has not previously fulfilled its obligations, then it will no longer be able to receive a loan. And I'm not talking about companies, but about the people who made the decisions: owners and top managers. You can create a new company, but not be born a second time. Sberbank solves all other problems with lending to the construction site today.

Only real specialists work in our offices, helping clients to obtain loans as quickly as possible for the further construction of a house. The loan program will be selected for the person in the most beneficial way, the amount that must be paid every month will be fully calculated. In addition, the contract will be executed as quickly as possible. Submit an application

Lending terms

Required documents

1. Passport;
2. Certificate of land / Extract from the USRR;
3. SNILS / Driver's license;
4. With an amount over 1,000,000 rubles. (one additional document at the client's choice):
2NDFL
Help in the form of a bank
Copy of work book
Extract from the PFR (for non-working pensioners)

CB Renaissance Credit (LLC), one of the leading banks in the consumer lending sector in Russia, offers individuals consumer loans, bank cards, deposits and other services.

Founded in 2003, Renaissance Credit is one of the TOP-50 largest Russian banks and works with 12 million clients in Russia. The geography of activity of "Renaissance Credit" covers 62 regions of Russia.

Licenses of the Bank of Russia for banking operations No. 3354.
Website "Renaissance Credit" - rencredit.ru

Lending terms

Requirements for borrowers

Citizenship of the Russian Federation;
Age from 20 years;
Permanent place of work for at least 3 months;
Permanent registration in any region of the Russian Federation.

Required documents

Passport of the Russian Federation;
One additional document at the client's choice: SNILS, Driver's license, 2NDFL, international passport, copy of work book, extract from the Pension Fund of the Russian Federation (for non-working pensioners) with a loan amount of more than 250,000 rubles

Post Bank is a universal retail bank,
created in 2016 by VTB Group and Federal State Unitary Enterprise Russian Post on the basis of Leto Bank.

Lending terms

Requirements for borrowers

Age from 18 years old
The presence of a mobile phone; an indication of a work phone number if you are working, or another contact phone number

Required documents

Passport of a citizen of Russia with permanent registration in any subject of Russia
SNILS number
TIN of the employer

How to get a home loan

On the website of our company you can buy a house on credit. We are well aware that not every person can raise the right amount of money at once. Therefore, such a convenient condition was created, helping to purchase housing in the most profitable way with the help of Credit Europe Bank JSC. The financial institution is reliable and offers quality work, which is confirmed by international agencies. There is a huge network in Russia. To get the most detailed and extended information, you can ask any questions to our consultants.

Construction lending is a special type of lending activity. Since almost always a partial collateral for a construction loan is a pledge of real estate (a land plot and an object under construction), from a formal legal point of view, this type of loan is secured by a mortgage and can be called a mortgage loan. But, due to the peculiarities of construction lending and the availability, in addition to mortgages, of other types of collateral, in practice and in the literature this type of lending is distinguished separately from mortgage lending, which is usually understood as mortgage housing lending to citizens for the purpose of acquiring ready-made housing on the security (mortgage) of this housing.

As shown in fig. 24.1, only a pledge of a land plot with an object under construction located on it is insufficient to secure a bank loan. Given the increased risks of construction projects, banks rarely raise the level of the ratio of the loan to the assessed value of the pledged property (LTV) to a level above 50%. Thus, presumably, in order to obtain a loan, the developer must have assets comparable in value to the loan he plans to receive, or use other additional types of collateral.

Rice. 24.1. Expert assessment of the ratio of costs incurred and the value of the real estate object (land plot with an object under construction on it) at various stages of the implementation of a housing construction project

Housing construction lending is largely related to long-term residential mortgage lending, which was discussed in detail in previous sections. Indeed, the object of lending in this case is the creation of residential units, i. apartments or houses, which in the future, after the completion of construction, become the objects of sale and purchase and the objects of security for mortgage housing loans.

Nevertheless, lending to construction in general (both housing and commercial facilities) is a very special type of lending activity, since it has a number of inherent features only to it.

First, borrowers on construction loans are, as a rule, not individuals seeking to improve their living conditions, but commercial developers, professionally involved in the implementation of construction projects. An exception is lending to individual housing construction, when an individual receives a loan for the construction of a residential building, in which he is then going to live.

Secondly, the term of construction loans is determined by the duration of the construction cycle and, therefore, under normal conditions cannot exceed 3-5 years on average for ordinary projects, but in the case of housing construction? 1?2 years, i.e. is a medium term loan. The exception, again, is individual housing construction, when a loan is issued to an individual, with its subsequent repayment over a long period, similar to the terms of standard residential mortgage loans. But at the same time, it should be remembered that the latter type of loan cannot be unconditionally classified as a construction loan, since it has specific characteristics of both a medium-term construction loan and a long-term mortgage loan.

Thirdly, construction loans are characterized by a number of special procedures for the preparation, issuance and management, each of which is due to the first two of these features. In this chapter, we will take a closer look at the specifics of the procedures in the case of lending for construction, including multi-apartment residential buildings, as well as for lending to individual housing construction.

And finally, the collateral for these loans is not only a mortgage - a pledge of real estate (in foreign countries? usually a land plot and a newly built residential building), but also other assets of the developer.

Thus, when analyzing construction lending (both housing and commercial facilities), we mean a very special type of lending activity, which can be defined in the most general form as follows.

Construction lending is the provision by credit institutions to legal entities or individuals of targeted loans intended for the implementation of preparatory, construction, installation and commissioning works related to the construction of newly created residential and commercial real estate or the completion of construction (reconstruction) of existing real estate.

Collateral for such loans may be a pledge of land plots on which construction is underway, newly created real estate objects on these land plots in the process of construction (mortgage), building materials, rights under relevant contracts for work and supply of building materials, as well as any other types of security allowed legislation

Who gets a home loan

There are a lot of reviews about mortgages, positive and not so much. The main plus is that it is really possible to build a house in one season, without putting money under the pillow all winter. The full amount is immediately transferred to the developer, who buys the materials himself and organizes the work. Even taking into account interest, a mortgage for the construction of housing will cost less than buying a finished cottage.

To issue a loan for the construction of a residential or country house, you must meet the requirements of banks:

Pledge on property (real estate, land, car)

Guarantors (spouse and unrelated persons with high income)

Purposeful use of money (only for construction)

Down payment 15-20%

Registration of land for individual housing construction for the applicant

There are loan programs in which it is not necessary to meet all the requirements - you need to find out more directly from the bank.

What documents are required

From the documents the borrower must provide:

Passport with Russian citizenship, certificate of own and surety income

Confirmation of the right to use the land plot

The project of the future house and the estimate from the developer

Statement or checks from the bank on a personal account

Video description

Visually about obtaining a loan for building a house on the video:

Credit institutions pay special attention to the stability of the client's income. The longer the repayment period, the higher the risk of delay and non-return of money. The age of the applicant at the time of submission of documents must be over 21 years old, and the debt must be repaid before the age of 65 years. It is safer to calculate the contract schedule without retirement.

Processing time

Most of all complaints are caused by documents on the ground. A deed of gift, a contract of sale, an extract from the register, a cadastral passport, a building permit - the execution of all papers takes several months. Approval of the application at the bank lasts about 10 days, another 4-5 weeks go to the final stage. So that the process of processing the questionnaire is not delayed in time, it is recommended to collect all the certificates and documents before submitting the application.

The maximum loan term is 30 years. If you need an amount up to 300 thousand rubles. for a short period, you can try to take a consumer loan. In this case, no deposit is required, but the interest rate is higher.

It is more profitable to take a consumer loan for a short period

Who is eligible for a concessional loan

There are exceptions to every rule. The state has identified certain categories of people who can count on preferential terms for a loan (rates are lower, repayment periods are longer, there are no additional fees). These include:

Doctors, teachers and other employees of budgetary organizations

Participants and liquidators of the Chelyabinsk NPP accident

People awarded for high services to the country

Large, young and low-income families

military personnel

Persons found to be in need of housing improvement

Some banks cooperate with large enterprises that take on corporate housing mortgages. For them, the loan rate is below the standard. And the company gets interested employees.

Construction subsidies

A young family can count on receiving subsidies from the state to improve their living conditions. To do this, she must be recognized as needy. If there are no children yet, the government issues 35% of the loan amount. Families with children are entitled to 40%. There are restrictions on the total area and price per 1 m² of purchased housing. They are specific to each region.

Until 2008, banks easily issued a loan for the construction of a private house with a down payment. During the crisis, the number of bad debts increased sharply. Therefore, now for large loans, an advance is required.

Down payment is a common practice for mortgages

The less money the client deposits, the higher the interest rate under the agreement. Or you will need a mortgage on a property of a similar value. If the borrower has maternity capital, then you can build a house on credit without a down payment. Or use it to partially pay off the debt. You do not need to wait 3 years, the certificate for paying the mortgage can be used immediately after receipt.

In Russia, only large banks issue loans for the construction of a private house. Do not be afraid that the institution will be liquidated in 30 years. In any case, all his debts will be redeemed by a competitor, and the terms of the mortgage agreement for the client will remain the same.

Which banks lend construction

You can send an application for consideration to the bank through developers who carry out inexpensive construction of houses on credit. Let's take a closer look at their offerings.

Sberbank

Offers to build a house on credit in Moscow and the regions at a reduced rate of 10% per annum. The minimum tariff is valid for participants in the salary project of Sberbank. For the rest, it will be 10.5%.

Sberbank is ready to provide a client with a loan for building a house in the amount of 300 thousand rubles. The upper limit is 75% of the contract value of the future housing or the estimated figure for the collateral. The initial payment is 25% of the loan amount.

Sberbank also provides mortgage loans for the military

Participants of the salary project do not bring income certificates when applying. The loan is provided in parts in accordance with the stages of construction. Early repayment is not subject to commission. Penalty for late payment - 20% of the amount of the overdue payment. Approximately a loan for building a house in Sberbank can be calculated on the official website of the bank.

If within two years after the conclusion of the contract the cost of building a house increases, the bank can give a deferral for the payment of the principal debt.

Rosselkhozbank

This bank issues a mortgage loan for the purchase of a finished house or building plot. The minimum annual rate of 9.5% is provided for young families. One of the spouses must work in a budgetary organization or receive a salary through Rosselkhozbank. The condition is valid only when buying an apartment on the secondary market. Borrowers without benefits are set at a rate of 12.5% per annum.

The minimum amount for issuance is 100 thousand rubles, and the maximum is 20 million rubles. Down payment from 15 to 30% of the cost of housing, depending on its type. Money is provided at a time and in full.

Attractive loan terms

The client can choose the system of repayment of the loan, as convenient (fixed or reduced). Young families in which children were born during the period of the contract receive a deferral of up to 3 years to pay off the debt.

rebirth

If you want to buy a turnkey cottage on credit, contact Vozrozhdeniye Bank. Here they are ready to give out from 300 thousand rubles. up to 10 million rubles to make dreams come true. The rate for the year will be from 11.9%, excluding insurance, if you make an initial payment of 15%. Loan security is not required. Any change in the terms of the contract will be paid.

If the construction has been going on for a long time, and the funds for it have already run out, Vozrozhdenie offers an unsecured loan from 50 thousand rubles. up to 2 million rubles for any purpose. No references or guarantors are needed. The average rate is 20% per annum.

Credit Europe Bank

This bank easily approves a loan for the construction of a country house. The rate is 12-20% per annum, the maximum amount is 3 million rubles. for 8 years. Money is transferred only by bank transfer to the account of the developer. The advantage is that from the moment of receiving the application to the transfer of funds, only 3 hours pass.

The bank does not ask the applicant for income statements, availability of guarantors and insurance. The application itself can be submitted directly from the construction company, so as not to come to the office once again.

Often construction companies have contacts of several banks

LocoBank

Provides a loan for a house built by the bank's partners. You can get up to 5 million rubles. for 7 years. Interest rate from 13.4% per year. Life and property insurance only at the request of the applicant. Early repayment from 1 month.

The borrower must have a permanent place of work for at least 4 previous months. Of the documents, only a passport, a questionnaire and a certificate of ownership of the building house or a contract agreement are required.

This is a list of banks that offer the purchase, construction or completion of a house on credit. Terms of registration change periodically, so the relevance should be clarified at the consultation with specialists.

Video description

About choosing a bank to get a loan on video:

Mortgages make it easier to make your dream of owning a home come true. If you adequately assess your financial capabilities, then soon you can celebrate housewarming in a cottage village.

Construction requires a lot of start-up capital, which can be obtained through loans. This article will help you find out which banks provide such programs to borrowers and where you can get funds for such purposes.

Services to commercial organizations are offered by many banks in the country.. Only a few of them provide a special program for the construction. Several of these banks are listed here, they can be quite useful.

Sberbank issues loans that cover more than half of the project budget. You can get ruble, dollar or euro loans. Also, the bank conducts construction expertise of projects and provides other services.

Alfa Bank finances developers and equity holders, while there is a minimum loan amount for a company. Funds are allocated to most categories of commercial buildings, there are strict requirements for clients.

Absolut Bank offers similar services. At the same time, you can get additional services that can be quite useful during construction.

All these banks also provide a wide range of services to their commercial clients. Therefore, if services are already being provided by these banks, then it is quite possible that it will be easier to receive funds.

Since very large sums usually appear, then requirements for borrowing companies corresponding. Most banks are ready to cooperate with those who have been on the market for many years and successfully run their business.

To confirm your status and goals, you will need a lot of documents. Banks should see them in order to check the reliability and expediency of issuing funds for certain projects and only then transfer them to the account.

Each bank has its own requirements. You need to carefully study them even before filing, in order to immediately prepare the necessary package of documents. Sometimes they are published on official websites along with the requirements.

Bank representatives will see how long the business has been running and what long-term results it brings. They will also correctly assess the scale of future construction and its possible prospects.

Also, the more successful the business, the more favorable interest and a long payment period the bank can offer.. It is desirable to have other projects that already bring dividends.

If there is little time to communicate with bank representatives, you can use the help of loan brokers. They charge a certain percentage for looking for the most suitable loans and applying for them.

When signing such large transactions, legally correct execution of contracts is important. Use the help of competent lawyers so that the contracts are beneficial for all parties.

Our website has a lot of information for entrepreneurs. Read the pages about where it is better to open an account, how to get a cash loan, how to get loans for tenders.

Leave your opinions and suggestions in the comments. To decide which banks are suitable and the most profitable way to get loans for commercial construction, read the reviews.

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