If you’re thinking about building your own home from scratch, you’ve probably heard of the self-development mortgage with land. This type of mortgage can be a good option to finance the construction of your home, but it is important to know in detail how it works in order to make an informed decision. In this article, we will explain what the self-development mortgage with land consists of, the requirements you must meet to access it, and some tips to make the most of its advantages. If, on the other hand, you are not going to buy a plot of land but are thinking of buying a house already built to renovate it later to your liking and you need financing that combines the cost of buying the house and the renovation, then we recommend that you visit this other page to see all its advantages https://kaleidoscope.es/hipoteca-promotor/
What is a self-development mortgage with land?
A self-development mortgage with land is a type of mortgage that is granted to those who want to build their own house, either on a piece of land they already own or on one that they acquire especially for it. Unlike other mortgages, the self-developer mortgage with land is not released in a single payment, but is delivered as the construction of the home progresses. In other words, the bank will deliver the money depending on the milestones that are reached in the work, such as the erection of walls, the installation of plumbing or the placement of roofs.
Requirements to access a self-development mortgage with land
To access this financing to start your new life, it is necessary to meet a series of requirements. Here are the most important ones:
- Have a construction project
It is essential to have a detailed construction project in order to apply for a self-development mortgage with land. This project must include all the technical specifications of the work, as well as the detailed budget for the materials and services necessary to carry it out.
- Have a plot of land
It is also necessary to have a plot of land on which to build the house. It can be your own land or acquired expressly for this purpose.
- Demonstrate financial solvency
The bank needs to ensure that the mortgage applicant has sufficient financial capacity to meet the construction costs. Therefore, a demonstration of income and a declaration of assets will be requested.
- Purchase construction insurance
It is mandatory to take out construction insurance that covers possible accidents or damage during the work.
- Provide a mortgage guarantee
As with any mortgage, it is necessary to provide a mortgage guarantee, which can be the land on which the house or any other property that the applicant has will be built.
Advantages of the self-development mortgage with land
The self-development mortgage with land has some advantages that make it a good option for those who want to build their own home. Here are some of them:
- Flexibility in construction deadlines: As not all the money in the mortgage is released at once, the pace of the work can be adjusted to the needs of the builder and adapted to their financial availability.
- Greater control over the construction site: As the builder is responsible for the construction of the home, they can directly monitor the progress of the work and ensure that their expectations and needs are met.
- Possibility of saving costs: By building the house from scratch, you can reduce the intermediation and management costs involved in buying a house that has already been built. In addition, by being able to choose materials and suppliers, more competitive prices can be achieved.
Tips to make the most of the self-development mortgage with land
If you are thinking of applying for a self-development mortgage with land, we recommend you follow these tips to get the most out of it:
- Plan your construction project well
It is important to have a well-planned and detailed construction project to avoid unforeseen events and additional costs during the work. 2. Compare different mortgage options Before deciding on a self-development mortgage with land, compare the options offered by different financial institutions to find the one that best suits your needs.
3. Aprovecha las ayudas y subvenciones
In some autonomous communities there are grants and subsidies for the construction of homes. Find out about the ones you can opt for and how to apply for them.
4. Contrata a profesionales de confianza
To ensure that the construction of your home is done correctly, hire trusted professionals with experience in the construction sector.
Is this type of mortgage a good option then?
The self-development mortgage with land is a good option to finance the construction of your own home. As we have seen, to access it, it is simply necessary to meet a series of requirements and follow some tips to make the most of its advantages. If you are thinking of buying a plot of land to build or take advantage of a piece of land that you already own, build your own house, do not hesitate to find out about this option and make an informed and well-planned decision.
If you need advice or help in the management of your project, Kaleidoscope is a company specialized in comprehensive renovations that can provide you with all the necessary information and accompany you in the process of building your home. Do not hesitate to contact us to learn more about our services and how we can help you in this exciting new adventure
You can also try to value your project in our free quote tool through the following link:
