What are the requirements for transferring a mortgage application to a completed building under the guarantor system?
Select Mortgage Guarantee Program, one of the initiatives of the Real Estate Development Fund. There are 7 conditions and requirements for transferring a loan application to a completed building under the guarantor system. The conditions are:
- The loan applicant must have received approval.
- The building must be free of structural defects, fully completed, and ready for occupancy.
- The property must not be more than twenty-five (25) years old.
- It must not have been mortgaged to the Fund more than once.
- If the building is 15 years old or older, the citizen must submit a request to the Fund to assess the property’s condition and complete Form 20% to deduct the amount from the loan value.
- If the seller has overdue installments with the Real Estate Development Fund, the application will not be accepted until all amounts owed by the seller have been paid.
- If there is more than one owner of the property, one of them must be designated as the agent for the sale and collection of the proceeds.
Citizens will be informed that the transaction process for buildings older than 15 years takes a maximum of 60 days to assess and evaluate the property.
The program clarified on its website that loan amount is determined according to the Fund’s applicable specifications, and the Fund reserves the right to accept or reject the application. It noted that the application will be withdrawn within a maximum of 3 months from the date of submission, and emphasized the need to follow up according to the given deadlines.
