Real estate loan agreement for home ownership

The loan agreement is a loan regulated by the State and distributed by banks and specialized institutions that have signed an agreement with the public authorities or the society of management of the guarantee fund of the social accession (SGFGAS) acting on behalf of the state and whose purpose is to build, acquire or improve housing.

Conditions of granting

Unlike some homeownership supports, there is no ceiling on resources to qualify for a loan agreement. On the other hand, certain conditions must be respected:

Financable operation

The PC can be used either to buy his principal residence (ie inhabited at least eight months a year) or to invest in a new home to be rented . In both cases housing will not be subject to further work that would change its destination (transformation to local or secondary residence for example).

Acquire your main residence

Acquire your main residence

All the operations mentioned below must concern the residence of the borrower or a close family member, ie:

  • Ancestors
  • progeny
  • joint

In some cases, the legislator allows the beneficiary to rent the home (case of force majeure or related to professional imperatives or health problems).

Good to know : the ascendants or descendants can be those of the borrower or the spouse

Buy a new home to rent

Buy a new home to rent

The agreed loan can be granted to an investor if he / she complies with the following two conditions: buy a new home (apartment or house construction) and rent the unit to a person who will make it his / her main residence.

He must then choose between two options:

  1. Sign an agreement with the state. In this case, he undertakes to respect the conditions that regulate the rental. In return, the tenant can benefit from personalized housing assistance if his income permits.
  2. Rent your home freely. In this case, the tenant can not benefit from an APL. On the other hand, he can obtain a housing allowance according to his situation.

Finance works

The PC can also help to finance the realization of certain works on a housing with the dual condition:

  1. This is the principal residence of either the borrower or the tenant (rental investment case).
  2. The nature of the work is shown in the table below

Important : the minimum amount of work financed by a loan agreement must be 4000 €.


The amount of a PC can be used to finance all or part of the acquisition including ancillary costs, ie notarial and guarantee fees, as well as a number of charges and taxes such as:

  • The surveyor’s fees when building a house.
  • The fees of the architect and the contractor.
  • The various taxes: TLE, fee for the financing of CAUE, departmental tax of sensitive natural areas

Note : if you have a building land acquired less than three years ago, you can integrate its value in the financing plan including a loan agreement.

The repayment term is 30 years. However, in the case of adjustable loans, it is possible to extend the initial term by 5 years. Interest rates can be fixed or variable. Their cap is made by decree but is not really useful in that they are located above those practiced by the market.

The variable rate ceiling is set at 5.35% regardless of the duration.

Additional loans

Several soft loans can complement a PC and help finance the property.


Recall that since 1 January 2012, the PTZ state finances only new housing. The latest reform also reintroduced the capped income condition and redeveloped the different geographical areas.

In addition, be aware that some local authorities distribute aid to the accession like the PTZ of the city of Paris.


If you hold a housing savings transaction or if one of your relatives makes you benefit from his rights, the loan PEL or CEL can be a good supplement provided that the rate is lower than those currently practiced, this which is rarely the case except for CELs.

Aid to public service employees

Aid to public service employees

Employees of the civil service can benefit from financial aid for civil servants in the form of a mortgage whose rate is capped by decree. As with fixed rate NOTs, these caps are not very attractive as the rates currently offered by banks are better.

Loan action housing

Loan action housing

The Housing Action loan allows private employees to benefit from a particularly advantageous rate (around 1.5%). However, this aid is not systematic and depends mainly on the social policy decided by the company. It may decide to allocate all available funds to the rental aid.

Relay credit

When the new acquisition is made simultaneously with the resale of an old dwelling, it is possible to supplement with a short-term bridge loan. This is in principle two years maximum.


The beneficiaries of a loan agreement receive housing assistance, distributed by the CAF, according to their family situation and their income. The resources taken into account are those of all the persons making up the home for the year N-2.


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