Mortgage Loans under the State Support Program for Ensuring Housing Affordability for Families in Border and Selected Settlements of the RA

 1.         

Eligibility

RA residents and non-residents aged 18– 65 who during the loan period will not turn 65 or the loan will be shared by a co-borrower who meets these requirements.

 2.         

Border settlement

A rural settlement included in the List of settlements of Appendix 1 to resolution of the RA Government #1444-N as of December 18, 2014.

 3.   

Selected settlement

A rural settlement listed in the decision of the RA Government # 842-L as of June 9, 2022.

 4.         

Program beneficiaries

Individuals specified in the decision of the RA Government #842-L as of June 9, 2022

 5.         

Loan purpose

Construction/completion of construction of single-family homes in border and selected rural settlements in Armenia

 6.         

Loan currency

Armenian drams

 7.         

Loan amount

(support limit)

AMD 2 000 000 – AMD 16 000 000

 (for Baghanis, Berkaber, Kirants and Voskepar settlements in Tavush marz – up to AMD 21 000 000)

 8.         

Loan period

120 months

 9.        

Nominal interest rate per annum

13%

10.        

Actual interest rate

14.02% - 15.58%

11.        

Penalty for loan prepayment

Not applicable

12.        

Penalty for late payment of loan principal and interest

For past due principal  - 0,015 % per day,

For past due interest - 0,1 % per day.

13.        

Loan security

The land lot under development/property under construction

14.        

Insurance

Not applicable

15.        

Loan disbursement method

Non-cash, in several tranches

16.        

Bank fees

Not applicable 

17.        

Creditworthiness assessment

• As of the date of the loan application, the borrower, co-borrower(s), pledger(s) must not have substandard loans,
• Creditworthiness assessment is not required.

18.        

Timeline for making decision on  loan application approval or rejection

• The decision on approving or declining the loan application will be made within 10 (Ten) business days upon submission of the entire package of required preliminary documents;
• The loan will be disbursed within 2 (two) business days after the approval of the loan application and completion of property pledging procedure.

19.      

Other provisions

• The cases falling outside these terms, will be regulated based on the provisions and terms as specified by Government decision #842-L of June 9,2022;
• Mortgage loans for the continuation of construction may be granted if the "Additional Notes and Information" section of the certificate of state registration of rights to an incomplete construction object shows a completion rate of up to 80 percent, or is marked as "incomplete" or "unfinished".