We talk a lot about loans in general, either online loans or fast loans. On this occasion, we want to emphasize construction loans for those who are considering building a new house or remodeling the home.
We also found it appropriate to make a small summary of the Argentine provinces in which the construction is stronger. This serves to know a little better how the construction area works in our country.
Construction loan, what they are and how they work
One of the questions you are probably asking yourself is what is a construction loan?
Generally, when we talk about a construction loan we mean a type of loan that tends to be short term. This loan provides the facility to obtain the funds that are necessary to cover the costs of a construction, as well as a home remodeling.
In general, construction loans tend to be subject to higher interest rates than long-term loans such as mortgages, which are used to buy homes.
Usually, the money granted in a construction loan is given to the person who has received the loan through a series of advances. These advances are made as the construction progresses. In general, payments that come from a construction loan begin to be made between 6 and 24 months from the confirmation of the loan.
ProClear Mortgage Credit
If you already have land and are looking for a personal construction loan, you can apply for a ProClear mortgage loan to build your first home.
According to the Government page, the requirements are:
- The value of the land cannot exceed $ 750,000 thousand dollars.
- The land must be in your name or a direct relative (father, mother or child).
- You can submit a work budget of up to 1 million 600 thousand dollars.
- You can build a house that has between 40 and 80 square meters.
Data to consider:
- The credits are given in UVA (Purchasing Value Unit).
- The annual interest rate: 1.75 and 9.9 percent.
- Time to pay the credit is up to 30 years.
National State Grant:
- Families with children: the national state gives a subsidy of up to 400 thousand dollars.
- Families without children: the national state gives a subsidy of up to 300 thousand dollars.
What loans does the government give to build?
- Better Home The ANSES grants credits to be able to make remodels in the houses, this program is called Better Home.
Better Home offers you important benefits, the objective of this financing is to generate inclusion, and also tries to improve the quality of life of those families who opt for this program. It offers the cash so that the corresponding remodeling can be done, either basic or to extend the house.
- UVA Mortgage UVA Mortgage Loans are loans that are adjusted for Purchase Value Units (UVAs). This is a unit of measure that was created by the BCRA in order to promote mortgage credit.
The characteristics of this type of loans are as follows:
- The rate that is contracted will remain fixed throughout the duration of the loan.
- The debt that is generated will be fixed in UVAs. This means that the fees generated are also in UVAs.
- The price of the UVAs of the previous day to make the payment effective will modify the value of each installment.
- It has an Annual Nominal Rate that is lower than that of any traditional operation and less income is needed to access.
In the event that inflation exceeds the increase in wages, and as a result, the fee to be paid exceeds 10% of it, it will be possible to request an extension of up to 25% from the bank. original loan term.
If you are not sure what a mortgage loan is, we recommend that you inform yourself well about what they mean, how they work, what their advantages and disadvantages are.
Tip to apply for a construction loan
For those people who are looking to take out a loan it is very important that they know which credit or loan is best suited to their particular situation since there are many types of possible loans. Counseling well is one of the first steps when thinking about a loan.
The construction industry in Argentina in 2019
According to data reported by the National Institute of Statistics and Census (INDEC), industry and construction in Argentina had a deep year-on-year fall in March: 13.4% and 12.3%, respectively.
Regarding the industry, the first quarter of 2019 of the original series index showed a drop of 11.1% compared to the same period of 2018.
In the month of March 2019, the seasonally adjusted series index disclosed a negative variation of 4.3% with respect to the previous month.