On the most common wish list of people are the first car, the prom, the wedding, getting to know other countries and of course the conquest of the dream house. But these accomplishments require money, especially the purchase of a property or land that is a high value asset that lasts for a lifetime.
To do this, you must have a large amount of money already saved or go after a land purchase credit. In this case, there are two options: you can either finance or contract a letter of credit to buy land.
But in addition to making the decision to invest in buying land, building your home, and choosing the credit option that fits your needs, you will still have a number of questions: ground? What is the difference between applying for a loan to buy my land or for financing? Can I withdraw FGTS to build?
If you are just starting to research credit to buy land, you must have identified yourself with all these issues, right. But calm down! In this article we will answer all these questions and help you find the ideal credit solution for you to achieve your goal of buying land and building your long-awaited home. Check out our tips below.
How Does Land Purchase Credit Work
Applying for a loan can be a good solution to realize the dream of buying land and building your home the way you always wanted. When researching loan arrangements, you will find land purchase letter options, which are specific loans for the occasion, but you will also find other models that may meet your need, such as payroll loans and secured loans. of property.
The main advantage of the loan is that you do not have to use the money for a specific situation, such as financing, which we will talk about later. When you apply for a loan, your income is assessed and a limit is approved for you to use as you see fit, meaning you can use it to buy land, build a house, buy furniture and decor, for example. As we mentioned earlier, among the most common lines of credit in the market are:
This option usually has good rates and long payment terms and is very common among civil servants, retirees and pensioners, because the loan installments are discounted directly from their payment amount (paycheck, pension or retirement), but the The bank must be linked to the institution providing the benefit. The main disadvantage of this type of loan, besides the high interest rates, is that if you for some reason lose the benefit, you need to repay the loan amount in one payment.
LAND PURCHASE CREDIT LINE
There are several banks that offer loans specifically for land purchase and construction. Known as real estate or land credit, this type of loan has very high limits, but equally high interest rates. You will find options in the market with rates of 5% per annum and others up to 28% per annum.
Payment terms also vary widely, ranging from 10 to 35 years. As with payroll-deductible loans, this loan is usually tied to a specific institution so if it is in a bank, you will need to have a checking account with that institution, or if it is in a financial institution, they will probably tell you which bank you should go to. open account to receive credit.
PROPERTY GUARANTEED LOAN
This credit model has high limits, flexible repayment terms and great rate options. Pcredi, for example, has rates from 0.99% per month and up to 180 months to pay. All this happens because, as you put your own property as collateral in negotiation, the financial institution has very little risk in lending you the value.
How does land financing work?
If you are wondering how to buy financed land, the options are diverse. There are banks that offer credit for land purchase and construction, urban land loan and also credit for the purchase of building materials. The main advantage is that most of them allow you to use FGTS to enter the funding. However, there are several rules and some financing models.
For land valued at up to $200 thousand, Raixa Economy Federal has a credit line called Own Property Credit, in which the payment of the financing must be made within 240 months. For land of more than $200 thousand, it is possible to use the letter of credit SBPE (Brazilian Savings and Loan System), in which the minimum amount of financing is $100 thousand and the payment term reaches 18 years. Cradesco, for example, finances up to 70% of the value of land valued at up to $ 950,000 ie you need to provide an input equivalent to 30% of the value of the land and has up to 10 years to pay.
As the options are diverse and conditions vary by institution, it is important to research and compare a lot. And remember that financing requires that the value be used exclusively for a specific purpose, be it the purchase of land, the construction of the house or, in some modalities, the purchase of building materials.
Credit or Financing? What is the difference between them?
As we have already said, the main difference between a loan and a land loan is that in financing the land you need to use credit for that purpose only. So if you get land financing, you won’t be able to use part of the value to buy furniture and household and home furnishings, for example. There are modalities specifically designed for land purchase, construction and even options for the purchase of building materials only. It is therefore important to be aware of these limitations.
How to use FGTS to buy land?
Using FGTS to buy land has some rules and bureaucracies. It is important to know that you cannot use FGTS to buy land that you will not build on. That is, it is possible to buy land with FGTS, however you need to build. FGTS cannot be used to buy building materials either. Caixa has credits financed for the purchase of land and the purchase of building materials, in this second it is not possible to use FGTS for payment.
Now that you know how you can use your benefit to buy your land and build your home, you may be wondering, but what does it take to withdraw FGTS?
FGTS Withdrawal Conditions:
- Being over 18 or over 16 and being emancipated;
- To be brazilian;
- Not to be negative;
- Document with photo (RG);
- Work portfolio
- Income tax declaration
- If you are a single worker, union statement
- FGTS Account Statement
Property conditions to finance with FGTS?
- Be valued at up to $ 1.5 million.
- Be residential and be in urban perimeter;
- Be used for housing;
- On the day of the final assessment, it must be in full condition of being inhabited;
- Not have been object in a previous use of FGTS.
What is required to buy a land?
Another question that surrounds those who want to buy a land is to know what, besides the money, is necessary to make the purchase. With this theme come other questions: Do I need a permit ? What kind of documents do I need? How does the land purchase contract work? Come on.
First, it is important for you to know the property registration and then check the land deed, allotment registration and real estate registration. Also require at the time of sale the property certificate of property, negative certificate of debts and property tax book. Thus, you will know more about the history if it is not collateral in any loan or cannot be seized in any lawsuit. In addition, it is interesting to know about the company responsible for the allotment. With all this information, you ensure that you are entering a secure business.
One thing that some people overlook and that can avoid headaches is: If on the property certificate, the owner is listed as single, make sure he or she has already been married. If so, you will need the spouse’s certificates as well as the marriage annotation. On your documents, you need to have RG, CPF, birth or marriage certificate, proof of income and address.
After making the purchase, do not forget the building permit. For this, you will need your identity documents (the same as the land purchase), municipal taxpayer registration, land property tax book, property certificate, the project design and the registration of the professional responsible for the execution that can be an engineer or an architect.
Is it possible to use Pcredi credit for land purchase?
If once you understand all the criteria for a land loan and the conditions for using FGTS you become discouraged, you can stop! As we talked about, there are several credit options that can bring you closer to your dream of building your home and one of them is Pcredi secured property credit. Taking out a secured loan to buy your land and building your home has several advantages:
1- The approved limit is high and you can use the money as you wish, from the purchase of land, building materials, furniture and appliances. Everything to make your new home complete. What’s more, if you wish, you can still enjoy organizing finances and entering the new home with the right foot and the bills in blue.
2- Rates are low (from 0.99% per month + IPCA), terms are long and trading is flexible. Take the opportunity to use the online loan simulator and find the right payment terms for you.
3- It’s safe, fast and easy. Even if it’s all online, your data is saved in super safe banks, the document submission process is very fast and, after all, you get the value within 10 days!
Now that you know all about how to get credit and what documents you need to buy your land and build your dream house, it’s time to take action! After asking for your secured credit at Pcredi, the time has come to think about the work. To make it easy, check out the 3 special tips we have prepared for you:
- Choose specialized professionals to accompany you;
- Budget at various building supply stores to compare values well;
- Do not forget to regularize the work or ask for surveys when finished.
By having good professionals, choosing quality materials, and doing proper surveys, you can avoid having to do another job after a while to fix this one.
Nothing else is missing, right? So secure your loan with Pcredi and get to work!