Qualifying for a French Mortgage
Unlike the mortgage processes in many other countries around the world, the French mortgage process involves a rather manual client analysis to determine eligibility to borrow. There are two primary elements to consider when determining whether an interested buyer is qualified for a French mortgage: obtaining French life insurance and proving sufficient income to cover the monthly mortgages.
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It is common practice in France that all French mortgages are backed by French life insurance for the borrowers. More specifically, many banks require insurance policies that have terms and conditions specific to their bank.
Second, borrowers need to provide proof that monthly payments for loans, existing and new mortgages, and other financial commitments must not exceed more than one-third of the borrower’s monthly income. The rest of the income can be used to pay for other costs of living. The purpose of this requirement is to reassure the French banks that there is a sufficient amount of money allocated to paying the monthly payments for the French mortgage.
Posted October 28, 2010
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