Riyadh-Amlak
<The Real Estate Development Fund has started receiving applications for additional financing from citizens who are borrowers from the Real Estate Development Fund, following the recent launch of the additional financing program by the Minister of Housing Dr. Shuwaish Al-Duwaihi, where the Fund provided a detailed explanation of the mechanism of the financing program.
Program and targets
The Director General of the Fund, Mohammed Al-Abdani, explained that the additional financing is a joint program between the Real Estate Development Fund, banks and real estate finance companies and institutions that includes the amount of the Fund's loan to an additional source of financing from the financier so that the citizen can buy a house with a value higher than the Fund's loan (500 thousand riyals) or buy land to build a house on it with the Fund's loan.
Al-Abdani pointed out that the program targets citizens who have been approved for lending by the Fund and the conditions of the Fund and the conditions of the financier apply to them and the house to be purchased. It is noteworthy that Al Rajhi Bank and Saudi Holland Bank signed an agreement with the Fund yesterday to effectively start working on the new additional financing system.
Application Mechanism
The application mechanism for the additional financing program for those who wish to borrowers of the Real Estate Development Fund is summarized by the application of the beneficiary who has been approved for the Fund's loan to the bank to apply for additional financing and the beneficiary is given the initial decision of acceptance or rejection after that the beneficiary reviews in the event of initial approval of the Fund to obtain an automated extract of the status of the request and in the event that the bank and the Fund agree to finance the beneficiary, the bank requires the beneficiary to provide him with documents of the property to be purchased and his income documents and requests to transfer his salary to the bank and open a special account for the additional financing process.
Procedure of the bank and financing companies
After completing the property documents and examining its condition and market value through appraisal companies approved by the bank, the bank evaluates the property and sends the required documents (for the beneficiary and the property) to the Fund to approve the property according to the Fund's conditions and to determine the value of the loan, and the Fund notifies the bank of the acceptance of the financing process through its approved forms (loan contract, tripartite agreement, beneficiary's declaration and mortgage letter to the Fund), The bank issues a final offer letter with the financing data (including the price of the property, the value of the financing and its data) and the customer signs his acceptance of the final offer made by the bank for additional financing. The bank then initiates the purchase procedures from the seller of the property and the bank also signs its own financing contract with the beneficiary and then issues a check for the full value to the seller of the property and coordinates with the seller of the property to set a date to come to the notary to empty the property for the bank and mortgage it to the fund with the value of the loan, After that, the bank provides the Fund with a copy of the marginal deed mortgaging the property to the Fund for the value of the Fund's loan, copies of the financing contract signed with the beneficiary and the acknowledgment of receiving the building from the beneficiary in addition to the beneficiary's account number for depositing the bank's payments, and the Fund transfers the amount of the Fund's loan to the beneficiary's account in a maximum of 4 payments, the first of which begins after mortgaging the property in its favor and signing the contract and ends after the third month of the contract.
