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May 22, 2022

“First Home” buildings to be completed in maximum 18 months

The houses which are to be built, individually, by state-endorsed bank loans, in the “First Home” program, have to be completed on a 18 month term, with a maximum one year-extension, a term during which owners will pay only interests and commissions to the bank, but not the instalments. The decision was made by the Government, by a recently-adopted resolution, Mediafax informs.

The law stipulates that the time for completing the building must derive from the enterprise contract signed with the construction firm, acting as general entrepreneur of the building, and the builder would have to attest his capacity to complete the work in the set term by not accumulating arrears longer than 60 days since the payment of bank credits, as well as a quality execution guarantee amounting to 10 per cent of the rough estimate of the work, in the form of a bank guarantee letter. In their turn, owners have to make a minimal contribution of 5 per cent of the house building costs, which covers the difference between the amount in the enterprise contract and the endorsed financing, but they also commit to making a collateral deposit to endorse interest, amounting to three interest instalments.

Changes regulate the new system of granting state endorsement for houses built both individually, and associatively, and are already included in a bill. This year, the program was modified, so that the National Fund of Endorsing Credits for SMEs will undersign the credit for buying a house in the “First Home” program to a maximum of EUR 60,000, for old buildings or those already under construction, and EUR 70,000 for buildings on which work hasn’t started yet, and buyers organized in associations will be granted a EUR 75,000 endorsement, for new houses.

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