The Real Estate Development Fund clarifies that there are no complications in granting loans from the Fund for residential apartments, as the borrower is granted the full loan amount if the apartment’s area is (240 m²).
It stated that 90 percent of the apartments sold meet the specifications, and the Fund’s estimated cost for granting the loan is 3,015 riyals per square meter, which is attractive to those seeking housing. He added that most of the issues the Fund faces stem from citizens themselves, who want small apartments but insist on receiving the full loan amount, which violates the regulations. Some insist on receiving 500,000, and when it is explained to them that the minimum area required to receive the full amount is 240 square meters… they either accept it or look for another apartment. Regarding owning an apartment in a building where the seller has a loan with the Fund, he said: “It’s simple—the owner, or whoever assumes the loan, must retain an area of no less than 280 square meters,” and the owner must divide the apartments into separate deeds so that each apartment can be mortgaged individually. He urged citizens to review the regulations or visit any branch of the Fund to inquire before purchasing, so they can determine the value of the loan they will receive (Okaz).