What is and how the solidarity fund for home loans works

 

From April 27, 2013, the Solidarity Fund for Home Loans, again established by the Ministry of Economy and Finance and managed by Conpade, is again available.

The Fund, financed with 20 million euros, allows the suspension of the payment of the loan on the first house for a period of up to 18 months if the contractor is in temporary difficulty. The Fund will repay to the bank the interest rate applied to the loan with the exclusion of the “spread” component.

Here are the conditions to present the request:

  • be owner of a property (first home) and holder of a loan of up to 250,000 euros for his purchase
  • have an parsee indicator less than or equal to 30,000 euros
  • to have the mortgage amortized for at least a year at the time the application is submitted; in case of late payment of installments, the delay must not exceed 90 consecutive days.

In the case of co-financing of the loan, the conditions may be valid for only one of the contractors. In case of death of the borrower, the application can be submitted by the joint account holder or by the successor who has taken over the header (if he / she is a new owner of the property, contracting the loan and with parsee less than 30,000 euros).

However, the new regulation modified the requirements for access to the fund, limiting them to these cases (for the holder or for one of the two joint holders):

  • termination of employment contract for a fixed or indefinite period (excluding: consensual termination, resolution for age limits with pension rights, dismissal for just cause or justified subjective reason, resignation of the worker not for a just cause)
  • termination of a quasi-subordinate employment relationship, commercial representation or agency
  • death or recognition of serious disability or civil disability of not less than 80%.

The situation of difficulty must have occurred after the signing of the loan agreement, in the three years preceding the submission of the application.

The application form for access to the fund, available on the Ministry’s websites (pdf) and Consap (pdf), must be completed and presented to the bank or financial company with which the contractor has signed the loan.