At its third regular meeting today, chaired by Essam bin Saeed, Acting Minister of Housing and Chairman of the Fund’s Board of Directors, the Real Estate Development Fund approved a number of important resolutions aimed at accelerating home ownership, as follows:
Approval of the executive regulations for investment loans.
Raising the assumed building age to 25 years for all those eligible for a residential mortgage loan, following verification of the building’s technical requirements.
Allowing those who wish to build one or more additional residential units on a building previously financed by a loan from the Fund to register these units in the name of a child or relative who has been approved for a loan, so that the loan may be applied to them.
Approval is granted for a group of borrowers to receive joint loans on a single plot of land to construct multiple residential units, which will later be separated into individual deeds for each unit in the name of its respective borrower-owner.
Approval to finance Fund loans under the “off-plan sale” system, enabling those approved for a loan to purchase off-plan residential units from developers eligible under the program, and the Fund will finance the construction up to the loan amount and disburse payments from the designated “guarantee” account in accordance with the Fund’s payment disbursement system.
Approval of the “Early Home Ownership” program, whereby borrowers on the waiting list who are expected to receive approval in the coming years (no more than 3) to purchase a housing unit from developers, whether ready-to-move-in or off-plan, and the Fund guarantees payment of the loan amount to the seller upon approval of the loan.
The Fund has also agreed to waive a loan application submitted to the Fund by one person to another with whom the applicant has a first-degree kinship relationship (parents, children, and siblings) who meet the loan conditions, if there are humanitarian grounds for doing so.
Yusuf Al-Zaghibi, Vice Chairman of the Board of Directors and General Manager of the Fund, expressed his gratitude to the Chairman and members of the Board for their support of the Fund’s development initiatives and their approval of solutions and initiatives designed to enable and facilitate citizens’ access to housing. He said: “With these decisions, the Fund has entered an important phase in its operational journey to actively contribute to realizing the vision of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud —may God preserve him—by providing suitable housing for every citizen. He noted that throughout its history, the Fund has enjoyed the constant care and ongoing support of the rulers of this blessed country—may God preserve them —which has had a significant impact on strengthening the Fund’s developmental role and helping it achieve the development goals set for the housing sector.
