Is that possible – what does the customer need to consider?
Who wants to finance his own home needs certain security, which are linked to the admission. Most clients of the bank no longer offer only a mortgage but several mortgages as collateral. But what if a real estate loan without equity is desired. Is there any possibility for a real estate loan without equity and if so, what requirements must the client provide. This is certainly difficult but quite feasible, because nothing more stands in the way of the so-called online home financings.
On the internet, some providers offer cheap real estate loans without equity, but that’s rather the rarity and interest rates on these offers are relatively high. Of course, the customer can try to apply for a real estate loan without equity, but here the borrower must engage in long and intensive discussions with the lender, because most providers see this award as an exception and rarely. Of course, if you plan and calculate your building project very well, you can negotiate the appropriate loan with the bank and, with certain exemptions, you can get the real estate loan without equity. As a new variant, some banks offer the 120% loan. This is mainly called a real estate loan without equity because this loan is granted exclusively for construction projects. Here, however, the equity ratio must cover at least 30% of the construction costs.
Some banks also offer customers a loan for the entire purchase price or the entire construction cost, but here the customer must ensure that he can bear all the additional costs himself. In the real estate loan without equity, both purchase and ancillary costs are included, so that the customer does not have equity available. Anyone seeking this form of credit should know in advance that not every bank offers and grants the real estate loan without equity. This form of credit is available only from banks that finance real estate without equity. In addition, real estate loans without equity also have higher demands on the creditworthiness and creditworthiness of the customer. For example, customers must be able to demonstrate a certain minimum income, which also affects the amount of the loan. In conclusion, it is quite possible to finance your home without equity, but certain needs must be ensured. But you should always keep collateral open, because a mortgage lending is long term and should be calculated exactly.