Engineer Yousef bin Abdullah Al-Zughaibi, Director General of the Real Estate Development Fund, presented during the second workshop an integrated package of solutions and programs previously announced, and Engineer Al-Zughaibi pointed out that these solutions and treatments took into account the balance between the supply and demand sides; so as not to lead to any inflation or issues in the real estate market, pointing out that it is preferable to apply all these solutions and offer them at once to absorb the large number of requests for loans, and revealed the Fund's design of a computer program that will soon be available on the website of the Real Estate Fund; giving a clear explanation of each program with the advantages and disadvantages of each protein
I: Collaborate with banking institutions in the following:
a) Loan Guarantee Program: So that the Real Estate Fund provides a guarantee to the borrower from the financing facility upon default of no more than 80 percent of the loan value.
ب) Accelerated Loan Program: It is offered to applicants to the Fund by one of the financing facilities, provided that the Real Estate Fund bears the cost of financing that it pays to that facility.
c) Down payment program in coordination with banks and real estate finance companies, to transfer the loan value as a down payment for the housing loan.
Second: Collaboration with employers (government agencies and companies)
This program aims to provide housing units for employees of governmental or private sectors that wish to do so, in cooperation between the Real Estate Fund, the developer, the entity, and the off-plan sales committee at the Ministry of Commerce.
Third: Cooperation with Charitable Organizations
This program aims to provide economic housing units for low-income people, on the lands of developers or philanthropists, provided they have a source of income, or resort to charitable associations or concerned government agencies to support the outstanding installments, in cooperation between the Real Estate Fund, the charitable entity (the donor), and the Off-plan Sale Committee at the Ministry of Commerce.
IV: Collaborate with real estate developers in:
1- Early home ownership: Applicants to the Real Estate Fund purchase a home from a developer, provided that the Fund guarantees the payment of loans to the developer after the approval of the loan.
2- Off-plan sales: To enable participants in this system to finance the construction of units for the borrower, an agreement will soon be concluded with the Off-plan Sales Committee at the Ministry of Commerce to activate the implementation.
V: Investment Loan for Individuals and Real Estate Developers provided that 30% of housing is built for citizens who are eligible for Real Estate Fund loans.
VI: Enacting new regulations. Of which:
- Releasing mortgaged units; it was approved at the last meeting of the Real Estate Fund Board.
- Giving a group of borrowers joint loans to build on the same land.
- Granting a loan to those who wish to build an additional structure such as a floor or an apartment or accessory..).
Engineer Al-Zughaibi recalled that the total number of applications on the Fund's waiting lists and those expected to be financial support products (500,000 riyals) amounts to more than one million citizens, all of whom urgently need treatment, practical solutions and innovative programs to enable them to own suitable housing in the shortest possible time, taking into account the following:
1- Taking into account that these new programs and regulations should not have an impact that leads to inflation and rising prices, which reduces the benefit of the loan amount.
2- To take into account the scarcity of land and its high prices, as well as the high prices of prefabricated buildings on the market.
3- Suitable for all segments of society who are on the waiting lists in terms of their financial capabilities and ability to pay.
4- To take advantage of the land stock of real estate developers and landowners.
5- Creating a partnership with the private sector (banks, developers, companies, financing, etc.) to contribute to providing practical, sustainable and long-term solutions for housing.
