The real estate loan without SCHUFA is not very long, he represents in this market a small revolution dar. Who knows the limits of consumer loans without SCHUFA (with all providers around 5,000 euros), marvels a little about a real estate loan without SCHUFA.
Real estate loan: How can this work?
A property is brilliantly secured by the land register entry, that is true. Therefore, a layperson might assume that financing without SCHUFA in the housing market can not be such a big sensation. The financing bank can easily retrieve their money through foreclosure if the installment fails for both the client and the homeowner. But it’s not that easy. A corresponding procedure is complex, the protection of the dwelling is a very high good, even in the normal case (with a usual financing with SCHUFA query) the banks go this way only with great reluctance. They prefer to look for customers with sufficient creditworthiness, which can be determined using the SCHUFA information. Another fact makes the real estate loan without SCHUFA in 2015 to the amazing phenomenon: A car loan without SCHUFA is currently not available from normal banks including motorbanks. There was a car bank until 2006, with another until 2012, but then such offers were completely discontinued. Even a car can be best secured by the car letter, but those interested in SCHUFA-free financings must go here winding ways. Why is there then a real estate loan without SCHUFA? Well, few specialized financial intermediaries have tackled this issue and, in partnership with foreign banks, found constructs that enable real estate credit without SCHUFA.
Where does the money for the real estate loan without SCHUFA come from?
As with all financing without SCHUFA, foreign banks are the backers in this case as well. Isolated cases of financing by German private banks are said to have already existed, but very little is known about this. Of course, the banks have a bargaining power and could intercept the risk for the real estate loan without SCHUFA in a “soft” negative entry on a higher interest rate. Nevertheless, German financial institutions largely reject such financing.
Real estate loans: Where do applicants go?
Few financial intermediaries promote real estate loans without SCHUFA. They have excellent relations with banks in Switzerland and other European countries, sometimes even the agents themselves come from Switzerland. Those interested in such a loan must specifically contact a reputable company, the
- the real estate loan without SCHUFA forgives without pre-cost,
- advertises with plausible interest rates (in the low to mid single-digit percentage range) as well
- offers a plausible procedure and comprehensible framework conditions.
The latter is of particular importance. The blanket promise that there could be a real estate loan without SCHUFA to “any” conditions at the intermediary concerned is not credible.
General conditions for real estate loans without SCHUFA
The general conditions can be described as follows after an overview on the market at the end of 2015:
- The real estate loan without SCHUFA can be awarded in sums of between 50,000 to 300,000 euros.
- It is eligible as a reverse mortgage for owners and residential real estate buyers.
- It is possible to finance without equity.
- The real estate loan without SCHUFA can be subordinated to the land register.
- The loan amount may exceed the mortgage lending value to a certain extent (around 50,000 euros).
- For seniors or in difficult cases, only shares of the mortgage lending value can be financed.
- Although the interest rates are above the usual market interest rates, but barely above 10.00%.
- Commercial real estate is generally not financed without SCHUFA.
The real estate loan without SCHUFA as reverse mortgage
The reverse mortgage is taken on a partially or fully repaid home. It is clear that in such a case the real estate loan without SCHUFA is significantly less risk for the lender. On the other hand, a foreclosure auction would still be costly and can not prevail without further notice only because of some unusual rates. To make matters worse for the lender would have the effect that the loan may be only subordinate in the land register, if the first loan on the house is not yet fully paid off. If now the borrower only does not serve the real estate loan without SCHUFA and if therefore the first-rank registered bank has no interest in a foreclosure auction, the SCHUFA-free financing bank does not get its money. It can therefore be stated that the reverse mortgage can be a complicated case. Nevertheless, real estate owners affected by a negative entry should think about this possibility. Under certain circumstances, they can take so much money with the real estate loan without SCHUFA that they can buy a car, renovate and even pay off some old debts.
Real estate loan without SCHUFA: information for interested parties
Reputable agents promise an initial notification of interested parties within 48 hours. As a lightning loan with a commitment in a few hours a real estate loan without SCHUFA is certainly not to have this matter is too complex. It should not be forgotten that the financial intermediary and its financing bank are not interested in realizing the property. You want the borrower to repay his installments on time. Therefore, their income and other obligations, as well as the nature of their employment or income generation, play a key role. These facts must be checked by a mediator before he can approve a real estate loan without SCHUFA.
For whom is the real estate loan without SCHUFA eligible?
The candidates for such a financing must bring good conditions. Although they may have a “soft” negative entry in their SCHUFA file, their income and professional status must be right. Most important is the permanent security of income, which is why pensioners are usually not excluded from the real estate loan without SCHUFA. But their financings can not last very long. Otherwise, full-time civil servants and employees have the best chance of success, followed by really good-earning, younger self-employed people with good business prospects for many years. For the unemployed, the real estate loan without SCHUFA is certainly hardly an option, although even in such cases the reverse mortgage can not be ruled out. Here it is the responsibility of the interested party, whether he gets involved in such a venture. In the worst case, he loses his house if he can no longer service the real estate loan without SCHUFA.
Real estate loan: when is not recommended?
First of all, it must be a reputable, best-known intermediary. If there is no doubt about security and integrity, it depends on the circumstances, the person of the applicant and the resulting interest, whether a real estate loan without SCHUFA is worthwhile or rather discouraged. The following scenarios speak against it:
- The applicant is a currently well-paid self-employed person with a young business. At the same time, he carries around a negative entry in his SCHUFA file. The broker could offer him an interest rate of 8.00%, that would be 5.00% over a real estate loan with a clean SCHUFA. This self-employed should wait until his SCHUFA entry is done (maximum of three years).
- The applicant already lives in a home and was just and surprisingly unemployed. But he had a lot of plans forged, including an annex to the house, a garage and a fancy new car ago. With the real estate loan without SCHUFA as backward mortgage could be financed, but if the candidate does not find a new job soon, he could lose everything. Here it would be rather advisable to give up.