There are mortgages dedicated to those who have to buy the bare ownership of a property. Not always – this must be said – they are easy to obtain and, above all, they have slightly less advantageous conditions than the classic first home loan , for example, but also the traditional loan for the purchase of a second home.
If this happens, there is a reason why. In many, buying bare ownership of a property is a form of speculative investment , and therefore the credit institution faces a greater risk of insolvency https://www.mrspropertysolutions.com/we-buy-houses-chino-ca/
For this reason, banks tend to ask for additional guarantees for the disbursement of the loan and the presence of a guarantor . Not to mention the terms of repayment of the loan, which will almost always be a little more onerous. Let’s say that in the face of these situations, banks tend to favor buyers who are already particularly solid from a financial point of view: those who, in essence, could with their own assets bear the cost of purchasing the property, but still prefer to pay by installments the amount, and not for reasons related to the availability of cash.
What documents to present to apply for a bare ownership loan
As mentioned, the conditions dictated by banks for disbursing a loan aimed at buying a house in bare ownership are a little more stringent. The lender will almost certainly ask:
Documents of those applying for the bare ownership loan
All documents of the property
Documents of the usufructuary person
Documents that certify the good financial situation of the person applying for the loan
Documents proving the good income situation
Other Documentation
Conditions of the bare ownership loan
It is risky for the bank to grant a loan for the purchase of the bare ownership of a house because, in the event of insolvency on the part of the buyer, it would not be able to retaliate against the usufructuary, who cannot be evicted for the entire duration of his life. For this reason, the conditions of this type of mortgage will never be the same as those of a traditional mortgage.