The social accession loan has been put in place by the State since 1993. It is a device enabling families with modest incomes to access property.
What is the social accession loan?
Created by the State in 1993, it allows the borrower to benefit from Personalized Housing Assistance (APL), granted by the Caisse d’Allocations Familiales (CAF).
Please note that from January 1, 2018, the Accession APLs only apply to the purchase of old housing, located in zone 3. For those who subscribed to the PAS before this date, the conditions remain the same.
Who is he talking to?
The Social Accession Loan (PAS) is a mortgage for people with low incomes.
In order to benefit from the social accession loan, it is imperative to meet means conditions, fixed according to the geographic area of the targeted accommodation and the number of future occupants.
In order to benefit from the PAS, you must:
- Being French
- Hold a residence permit
If you are an APL holder, know that it will be easier to access the PAS, rather than a standard mortgage.
What does it finance?
The social accession loan is intended to finance the following operations:
- Acquisition of land and construction of housing on this land
- Acquisition of new property
- Acquisition of old property and improvement works (if necessary)
- Work in an existing habitat, with the intention of saving energy, to enlarge it (by extension or by raising it) or to transform it into a room which was not intended to be inhabited before.
It is imperative that the amount of work is at least equal to $ 4,000 . In addition, if the loan finances works, they must be executed within 3 years of the loan offer. The accommodation must also become the principal residence of the borrower, at the latest 1 year after the end of the work or the purchase.
What types of accommodation are eligible?
With exceptions (mentioned below), the social accession loan is granted with a view to acquiring one’s main residence: by building it or by buying it. In this case, the borrower must live there 8 months a year.
It is nevertheless possible to rent the accommodation during the first 6 years of the loan, in the following cases:
- Dissolution of a PACS
- Unemployment of more than one year
- Purchase or construction for retirement or return from abroad / DOM-TOM of the borrower
- Professional mobility: if the distance between the new place of the activity and the property subject to the loan is at least 50 km or involves a journey time to go at least equal to 1 h 30.
The property must then be rented empty (no seasonal rental or furnished rental). In addition, the amount of the rent and the resources of the tenant must not exceed the ceilings of social rental properties.
In addition, for people who are already owners, the social accession loan can be used to carry out work. And this, always for his main residence.
Note: since 1 st January 2016, the housing is not forced to serve as a primary residence. It can be used as rental property, second home or professional / commercial premises.
Where to send a PAS request?
You must go to a credit institution (a bank, for example) having signed an agreement with the State.
You can obtain a PAS from a credit institution (example: bank) having signed an agreement with the State.
Before that, comparing the various offers of PAS before subscribing one, can prove fruitful. Indeed, according to the banks, the interest rate can fluctuate within the limit of the authorized ceiling. This comparison is made using the APR (Annual Rate).
What are the elements taken into account when applying for a PAS?
In order to be eligible for the social accession loan, you must provide the following:
- Income of the applicant (s)
- Household composition
- Debt ratio
- Personal contribution
- Guarantees offered
What are the resource conditions set?
To be eligible for the social accession loan, the amount of his income must not exceed the threshold of the fixed ceilings.
Account must also be taken of the Reference Tax Income for year N-2 and the geographic area of the accommodation concerned (area A, B1, B2 or C). Added to this is the number of people destined to inhabit the accommodation.
Means conditions by household size and geographic area
|Number of people living in the accommodation||Zone A||Zone B1||Zone B2||Zone C|
|1||$ 37,000||$ 30,000||$ 27,000||$ 24,000|
|2||$ 51,800||$ 42,000||$ 37,800||$ 33,600|
|3||$ 62,900||$ 42,000||$ 37,800||$ 40,800|
|4||$ 74,000||$ 60,000||$ 54,000||$ 48,000|
|5||$ 85,100||$ 69,000||$ 62,100||$ 55,200|
|6||$ 96,200||$ 78,000||$ 70,200||$ 62,400|
|7||107 300 $||$ 87,000||$ 78,300||$ 69,600|
|8 and up||$ 118,400||$ 96,000||$ 86,400||$ 76,800|
The estimated reference year is the penultimate year preceding the loan offer (year n-2).
For example, if the PAS application is made in 2019, you must take into account the 2017 tax reference income (it can be found on the 2018 tax or non-tax notice).
What are the interest rates in effect for the PAS?
First, be aware that the SSP interest rate is capped. It varies according to the duration of the loan and the credit institution of your choice.
In addition, for borrowers benefiting from APLs, these are deducted from the monthly payment of the loan for the calculation of the debt ratio.
The interest rates offered for the PAS can be:
- Flexible (fixed rate and variable rate)
Rate type depending on duration
|Less than or equal to 12 years||Between 12 and 15 years old||Between 15 and 20 years old||More than 20 years|
What is the repayment duration of the PAS?
The repayment period of the SAP extends over a period ranging from 5 to 30 years. However, it is possible to modify this duration in order to reduce or extend it for a period of maximum 35 years.
What are the advantages of PAS?
The social accession loan is guaranteed by a real security (mortgage or equivalent). This is not included in the land advertising taxes. The PAS finances all of your real estate project.
In addition, the costs of examining the file are capped and the notary’s remuneration costs are reduced.
Note that the PAS can be added to other types of loans. Among them :
- The zero rate loan (PTZ),
- Zero-rate eco-loan,
- Home savings loan,
- The housing action loan,
- An additional loan granted to French returnees from overseas who hold a compensation certificate,
- The loan for civil servants,
- The bridge loan, pending the sale of the previous home
In addition, if your loan is bought by another bank, you can no longer benefit from APLs. In order to obtain more favorable conditions, it is possible to renegotiate the loan with your bank, without risking losing your grants.
If you buy two properties, you have to make two different compromises in order to separate the rental unit from the main residence. This will allow you to be eligible for the PAS.