Are you under 35 and are you thinking of buying a house? Maybe you have already found the perfect home and now you are looking for a loan to help you make the purchase? It may be that you have already thought about a young home loan, but you don’t know exactly how it works or who pays it? If these are the questions you are asking yourself, then you will be pleased to have more information on any facilitations promoted by the lenders and the government. see mercador24.com for further notes
In fact, in addition to the benefits presented by the various lenders for those aged between 18 and 35, there is also the possibility of accessing a state subsidy which is called the First Home Mortgage Guarantee Fund. This is promoted by the state and is provided by partner banks that have joined the initiative. In both cases, in addition to the age limits, the maximum years for the return, the insurances imposed, the percentage financed and the access requirements also change.
As you are seeing, there are several options and differences that you can meet between the various proposals indicated for a youth loan . For this reason I decided to provide you with an in-depth guide that will allow you to know how they work, what are the requirements and the facilities in this regard. Ready to find out all this information? Then don’t wait any longer and read on.
First Home Youth Mortgage: How It Works and Requirements
When applying for a mortgage designed for young people even if the path to follow is very similar to that of a loan for the first traditional home, there are differences that mainly affect some points such as: guarantees for access, the amount that can be financed, the duration of the loan, etc.
The requirements may vary depending on the specific products but in general we can define the common characteristics required for access to a youth mortgage.
The necessary requirements include:
- An age between 18 and 35 years
- Having a fixed-term or permanent employment contract
- Purchase a property with a maximum value of $ 300 thousand
- Sign life insurance, theft and fire insurance on the home
- Not having had problems with insolvency in payments, protests or reports as bad payers
- Having an open and active checking account for at least 12 months
- In some cases, it is also necessary to be resident in Italy at the time of the request
- Do not own or have owned a property in the past (including property obtained by inheritance or succession)
These are the main requirements required by the various banks in Italy, but what are the benefits that this product entails unlike the traditional ones?
Youth mortgage benefits: which are the main ones
The facilities that banks offer to young people who want to buy a house make these products more accessible and attractive than traditional ones. For those under 35 it is possible to obtain various advantages, among which we find:
- The possibility of obtaining a mortgage covering up to 100% of the commercial value of the property. (while banks usually finance at most 80%)
- Access also to young people who do not have a fixed salary, but who have an income that comes from a fixed-term employment.
- Ability to change or skip the installment in times of financial difficulties
- The application of lower interest rates and an APR with a lower incidence for those who choose the fixed rate mortgage.
- A longer mortgage term extendable to a maximum of 40 years
These are just some of the benefits common to most banking products on offer. In addition to those provided by lenders, however, as we have anticipated, there is also the possibility of accessing the First Home Mortgage Guarantee Fund. Let’s see what exactly it consists of.
To read: Tax breaks for the first home
First home loan guarantee fund for young couples and under 35s
For all young people who want to buy a property, the state has promoted a guarantee fund that allows easier access to the loan in the banks participating in the initiative.
The guarantees necessary to access the fund generally include:
- Never having owned a property, nor having received it by inheritance or inheritance rights
- for young couples it is necessary to be married or to have been declared a de facto couple for at least two years. In addition, one of the two applicants must be under 35 years old.
- Be between 18 and 35 years old
- Being a worker with an atypical employment contract or not having the necessary guarantees to access a traditional mortgage
- The property to be purchased must not fall into the cadastral categories A1, A8 and A9 which identify luxury homes.
- be resident in Italy
- the mortgage loan does not exceed the value of 250 thousand USD;
As for the advantages that can be obtained through the Guarantee Fund, these first of all provide the guarantee on 50% of the mortgage by the State. This allows in fact to facilitate banks to grant the loan even to those who do not have the income requirements.
Another advantage is a lower interest rate, a lower impact of the APR for fixed rate mortgages and other concessions that can be agreed directly with partner banks.
In fact, even for the guarantee fund, the bank will still manage the case for the mortgage and agree with the applicant the interest rate and the duration of the loan, as well as any other advantages at the discretion of the credit institution.
First Home Youth Mortgage: Who Pays Them?
As we have seen, there are several advantages that can be obtained by applying for a loan for young people. But how do you know or compare the offers of the banks that provide them? To find out about the lenders where you can apply for the loan with the guarantee fund, you can go directly to the Consap website.
If, on the other hand, you want to find the offers promoted by the banks on the basis of products designed for those under 35 then you can choose to use an online comparator.
These platforms allow you to see the various proposals of the lenders, in this way you can choose the product that best suits your needs with greater agility. Among the best comparators you will find those of: Bankate, Viloan Mortgages, Zaloan and Bankcor.
To read: how to have a mortgage plus restructuring
Youth mortgage: some proposals from Italian banks
Finally, if you want to sift through some proposals currently presented by the main lenders. Here you will find all the information on the products of the groups that promote the youth mortgage.
1-Mortgage for young people under 35 Astro Finance
The product offered by Astro Finance for all those under the age of 35 who want to buy their first home is one of the most convenient. One of the most positive aspects of this loan is the possibility of financing the entire value of the property.
Astro Finance’s 100% first home loan therefore offers young people all the money they need to purchase. This is an offer that differs from that of many banks, in that usually the maximum amount financed is equal to 80% of the value of the house.
In addition to offering support to young people by covering the entire commercial value of the home, the youth loan with the Base Light Plan gives the possibility of obtaining an amortization plan that provides for the first years of the exclusive payment of interest, therefore a monthly installment much lower. The principal portion and the increase in the installment will only take place after this pre-amortization period which can range from 1 to 10 years. The maximum duration of the loan may be a total of 40 years.
Other options designed for young people and included in the Astro Finance product are:
- The flexibility option to suspend the payment of the installment or change the duration of the mortgage
- Suspension of payment 3 times, possible only after 2 years of regular payments
- Stipulation of the optional mortgage protection policy, in case you want to protect yourself from events that may jeopardize the possibility of repaying the loan. On the other hand, the life and fire insurance are mandatory.
Finally, you can choose between the light plan with a fixed rate installment for the duration of the mortgage, or at a variable rate by choosing to request the mortgage with a basic plan.
To apply for the Astro Finance youth loan, you can go to the official dedicated page, fill in the application form and wait to be contacted by a consultant. Alternatively, you can go directly to one of the offices closest to you and request an appointment.
The UBI bank offer is dedicated to young couples, so in this case singles are excluded, who want to buy a house for the first time. Funding for young couples is also granted to those who do not have permanent permanent jobs.
Despite the granting of the loan even to those who do not have a fixed job, there are still conditions to be subject to.
UBI bank’s young couples mortgage requirements include:
- An age under 40
- Having worked at least 18 months in the past two years
- Being busy when applying for a mortgage
These conditions apply to both applicants of the couple who want to access the loan. To get more information about this product, I suggest you go directly to the GBH Bank website and fill in the dedicated form. After sending the request, one of their consultants will contact you to help you formulate a personalized quote.
3-Bank Millenium Young
The Mediolanun Young bank loan is a loan designed for young people aged between 18 and 35. The product offered provides for the establishment of a first degree mortgage on the property as a guarantee for the loan and provides for a flexible duration depending on the amount requested.
The requirements to access Millenium Young include:
- Maximum amount that can be requested equal to $ 300 thousand
- Maximum loan term of 30 years
- Financing up to 90% of the property value
- Compulsory insurance against possible damage to the house
- Permanent employment contract
If you meet the required requirements, you can choose to have more information by going to the Bank Millenium website and clicking on the item: request the advice of a Family Banker. Enter the data in the form, a bank consultant will contact you who will give you all the information necessary to access the loan.
Finally, among the various proposals of the Italian banks there is that of the Cadeno group. The Bank Cadeno youth loan is a flexible loan that allows access to all those under the age of 35.
Loan access requirements include:
- The maximum request of 250 thousand USD
- Maximum duration of 30 years
- Establishment of a mortgage on the first house
- Fire and theft insurance
- Demonstrable income
Advantages of the Cadeno youth mortgage:
- Opportunity to obtain between 80% and 100% of the property value
- Choice of a lighter installment for a maximum of 36 months, in which only the interest portion is returned and not the principal.
- Possible suspension of 6 consecutive installments 3 times during the entire duration of the loan
For more information on this product, you can go to the Cadeno Group website and request a bank appointment, or be contacted by telephone by one of its consultants.
Our guide on the best banking products for young people who are going to buy a house is over. Now you just have to evaluate the best according to your needs and proceed with the request!