Mortgage Qualifications

If French banks lend outside the government "guidelines" on eligibility criteria, such lending may be ruled as "reckless" by the courts and the debt deemed null and void. As a result french banks are primarily concerned with the individuals demonstrable ability to repay a loan from established earnings.

 

Standard Criteria

  • From net monthly income after tax will be deducted all regular monthly payments for any existing mortgages and other loans
  • The remaining figure will then be divided by 3 to represent the monthly repayment on the French mortgage against which a French bank will feel comfortable to lend
  • Rental income and potential income may be taken into account against a formal and written assessment from a qualified French Estate or Letting Agent
  • An individual debt to annual income ratio should be about 33%

For high net worth applications it is necessary to have access to off shore lending from organisations that are less restricted by french law. Also to consider other European banks operating under licenses in France.

 

To buy a French home you generally have to be able to show you can afford it. We can furnish imaginative advice in this respect.

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