Prefabricated houses mortgage requirements list 2021 - Although prefabricated houses are not a recent phenomenon, the boom and popularity they are acquiring in recent times is new. Which has led many people to wonder what is the best way to finance an investment like this, whether with a mortgage for prefabricated homes or better with a personal loan.

The figures for the sale of single-family homes, offered by the National Statistics Institute (INE), show that the recovery is coming to the real estate market. In April 2021, there were 42,211 purchases, a month earlier they were 47,332, in February 43,185 and in January 39,753. This means returning to prepandemia data: in February 2020 there were 45,102 purchases, to fall to 35,745 only one month later.

Prefabricated houses mortgage requirements list 2021

On the BBVA website, they explain that, in order to finance the purchase of a prefabricated house with a mortgage, it must be a real estate, that is, it must meet the following requirements:

1. That the land on which it is built is developable.
2. That there is a work project approved by a college of architects and has a municipal license.
3. That the house is anchored to the ground (foundation is essential).
4. That the house is correctly registered in the Land Registry.

In this way, they point out, it would be subject to the current regulations on real estate. On the other hand, if the house is installed on rustic land and is not registered in the Land Registry (mobile homes), the mortgage option disappears, “although the purchase can be financed with another financial product, such as a personal loan. And, in that case, the entity will consider the home as a movable property"

Prefabricated houses mortgage requirements list 2021

In this entity they recommend hiring a movable mortgage, whose characteristics, they point out, are that, “unlike traditional mortgages, the entity does not deliver all the money of the loan at once, but makes payments as the work progresses. That is, there is an initial provision (to be agreed) and the following amounts are provided according to fixed dates and as the holder certifies the work”.

In Idealista, however, they explain that " banks are willing to finance approximately 80% of the amount of the property, which means that the user must contribute the other 20% plus expenses, in addition to having the land in ownership; and that the terms can be extended up to 30 years, in line with the market”.

Prefabricated houses mortgage requirements list 2021: They also detail in Idealista that, if the amount of the prefabricated house is less than 50,000 euros “ " banks usually offer customers the possibility of granting them a personal loan instead of a mortgage”. This, they argue, has good points, for example, that there are no formalization expenses (such as the notary, the Land Registry or the appraisal) and their commissions and links with the bank are much lower.

On the other side of the balance, however, is the fact that they offer a much shorter term than mortgages (usually less than 10 years) with a “much higher”interest rate. According to the Bank of Spain, the average interest rate on mortgage loans in Spain in April 2021 was 1.480 %, while, in the case of personal loans, the percentage is going to 6.68 %.

The director of operations of Idealista / hipotecas, Javier Lainez, advises that, " whenever the amount of money you need is low, you have both possibilities. The recommendation is that you do numbers to know what suits you and that you have a real ability to repay the loan.”

Prefabricated houses mortgage requirements list 2021

More news:

Female employment during the last 2 crises: few changes between 2008 and 2013 and parallel to male employment during the pandemic

Since the beginning of the statistical records on the Spanish labour market in 1986, the rate of female unemployment has always exceeded the male, with the exception of 2 months in the fall of 2009, in full rebound in historical unemployment in the midst of a recession world, when the percentage of workers without jobs are matched in September and October at 18.4% and 18.6%, respectively.

Except for that brief period of a technical draw in the middle of a crisis, in the last 35 years, the workers have always shown a lower rate of unemployment and a greater number of affiliated to the Social Security to the workers, a phenomenon that has been attributed historically to the incorporation of women into the working world, to the interruption of his professional career for reasons of maternity or taking care of dependent older, or the coronavirus, but that is not widespread in all countries of our environment.

Thus, comparing with the data of other countries of the European Union, France, Bulgaria, Estonia, Latvia, Hungary, Malta, Austria, Romania and Finland showed a higher rate of unemployment of men than women in the past month of April, while Germany, Ireland and Belgium unemployment by gender were at the same level, as in the euro-zone average.

On the other hand, with the Community employment figures reflected in their last reference segmented by sex, corresponding to the last quarter of 2020, all EU countries have more men than women in employment, with the only exception of neighboring Portugal, which at the end of last year had 2.29 million employed compared to 2.25 million employed men.

Meanwhile, the labour market of the USA breaks even more, with the trend towards greater male presence in the employment and female in the unemployment, as reflected in the research of economists Stefania Albanesi and Aysegun Sahin, who show that women have never been a majority in the u.s. market, but its unemployment rate has been lower than that of men in at least 5 occasions in the past 70 years, especially in times of crisis.

But, back in Spain, how has female employment evolved during the Great Recession that began in 2008 and during which it began with the outbreak of the pandemic? The answer, as is usual in the macroeconomic field, is more easily explained with the support of graphs that allow comparing at a glance the figures of Social Security affiliation of women and men during both crises.

So, starting with the economic crisis that began in 2008, the graph below shows the strong collapse of the figures of occupation male from July of that year, which resulted in the loss of more than 2 million affiliated to the Social Security over the following 5 years, the overall rate of unemployment reached its highest level in February 2013, with 26.3%, which translates into more than 5 million unemployed people of both sexes.

However, female membership figures were much more stable, losing less than 680,000 employees between the onset of the crisis and the peak of the rise in unemployment, despite the fact that their unemployment rate soared more than that of men in the same period. Thus, unemployment among female workers rose from 12.4 per cent in July 2008 to 26.9 per cent in May 2013, showing that female unemployment doubled while their occupation barely changed.

Meanwhile, the graph below, which shows the numbers of Social Security affiliation between February 2020 and may 2021, presents fewer movements, which makes sense since it is a shorter period, but fewer differences between the fall and subsequent recovery of the number of busy and busy, despite the fact that it has remained almost without change, the gap between the employment in both sexes.

Thus, male affiliation suffered a sudden collapse between February and March 2020, losing almost 500,000 employees, and starting from April a slow recovery that slowed moderately in August, December and March 2021. In the case of the occupied, the fall in the first month of the pandemic was just over 300,000 affiliates, but the figures would hit bottom during last summer to start a smoother comeback than that of the occupied from autumn.

By comparing these movements of the unemployment rate, the changes are less marked than during the last crisis, with unemployment among the workers going from a rate of 15.5% in February 2020 to a maximum of 18.9% in August, the month in which Spain became a european leader in female unemployment, to be reduced gradually up to 17.4% from April 2021, while the unemployment male fell from 11.9% to 14.8% between February and August, reaching 13.7% in April of this year.