If it is clear to you that your If you have the best option and your dream is to build your own home, you must start with the Planning and the management of the self promotor mortage.
The planning te permitirá disponer en cada momento del dinero suficiente para ir avanzando your project. Buy the plot, make the various payments. Calculate the overall amount you are going to spend on the construction of your prefabricated or modular house.
In this section we will help you to calculate the amount of money you can allocate to your project.
If you have the necessary resources for all the processes: buying and selling the plot and building your new house. You will simply have to adapt the amounts that you will allocate to each item.
On purchase of the plot, approximately 30%-35% of the overall budget, earthworks and foundations on the plot. The amount of the cost of the house (the remaining 65%-70%).
Don’t have the resources to realise 100% of your project? then will need part funding.
On the one hand What resources do you have? finance your project.or savings. Having another property paid for can help. On the other hand, what amount can the bank give you for your project? financiar tu proyecto.
The first 2 questions you will have are:
How can I finance the construction of my prefabricated or modular home?
the answer is with a self-promotion mortgage
Is it possible to take out a self-promotion mortgage for industrialised construction?
La respuesta es sí.
The 3 essential requirements to be able to take out a self-build mortgage on a future industrialised construction are as follows:
The Self-promotor motgage is the formula for banks to finance house building projects. for private individuals.
How does an autopromoter mortgage work?
1º The bank carries out a financial study of the client as in any other type of mortgage.
It takes into account household income, pay slips, other income such as rents, the employment stability, other financial debts (CIRBE) and payment obligations.
Calculate your debt capacity DTI (English Debt To Income) that may not represent more than 35% of net income.
2º It makes a forward-looking valuation of the value of the property once it is built. This valuation includes the price of the land, the cost of adapting the land and building the house.
3º Of this forward value, the bank will finance a maximum of 80% of the overall budget and determines the amount of LTV (Loan To Value) to be granted.
4º The plot must be in the name of the self-developer.
If you want to know what documentation you will need to apply for a self-promotion mortgage click here. here
La Self-promotor motgage has the particularity that the bank delivers the amount of the approved limit by certifications or provisions.
The first certification or disposal is made against the value of the land plus the project cost. A building permit is included.
It is usually used for the first payment to the builder/manufacturer of the structure (in the case of industrialised construction).
You want to know what is industrialised construction click here here.
The special feature of industrialized construction is that the structure is manufactured in the factory. This particularity should be resolved with the visit of the valuer in order to certify the amount of what has already been manufactured ex works.
In in the event that the bank does not consent to factory certification, the self-promoter shall bear the cost of the structure or module up to the implementation on the construction site. Once it has been installed on the foundation, the appraiser will be able to certify the progress of the construction.
Once the construction is on site, the different certifications are carried out in order to have the amount available and to be able to assume the partial payments agreed with the builder/manufacturers or finishing company.
The number of certifications to be carried out may vary, but it is not advisable to carry out more than 4 certifications due to the added cost for the self-promoter, who must assume this cost.
The bank will make a final 10%-15% final certification once the house is registered in the Land Registry.
The hipoteca autopromotor has the particularity that the payment is made from the part that is needed to make the payments to the different professionals involved in the construction.
It even establishes what is called carencia de amortización de capital for a period of 12/24 months depending on the bank.
As an advantage, industrialised construction has shorter execution times than traditional construction. The delivery time is reduced by up to 50% compared to traditional construction. Between 6 and 8 months from the granting of the building permit by the competent local council.
There is no homogeneous product among banks because each bank has configured its autopromoter mortgage product in a different way.
Some do not finance the land and only finance up to a percentage of the execution budget (PEM Material Execution Project) and others finance part of the land and part of the PEM.
They are percentages and we find the following models of hipoteca autopromotor:
LAND CONSTRUCTION
0% 80%
40% 80%
40% 100%
In the case of self-promotions of industrialised construction, we can obtain a rebate on the interest rate for the energy rating. This type of construction has the highest standards in terms of energy efficiency. Eficiencia Energética (if you want to know more about the Energy Efficiency certificate, we leave you this post from BBVA), A category.
Other conditions are usually the same as for the bank’s other mortgages.
The terms that banks are applying in this type of mortgages is usually the same as in the rest of mortgages, 30 years.
As established by mortgage law Law 5/2019 regulating credit agreements relating to immovable property, mortgage costs are borne by the bank. The only cost borne by the applicant is the appraisal and subsequent certifications.
In BuildLovers, you will always have the support of your Personal Builder to answer any questions you may have
