REGATTA: An inheritance, even if it is not a property, blows away the chances of qualifying for the "First Home" program

Accessing a loan guaranteed by the state under the "First Home" program is a lengthy process. According to real estate agency "Regatta", buyers unfamiliar with the terms of the program face all kinds of problems. Officials of "Regatta" presented a case where the loan application was denied: "One of our customers, who thought he would meet the requirements of the "First Home" program, was later told he didn"t qualify. He paid the downpayment, submitted the complete paperwork with the bank, but couldn"t obtain the loan because he had received a 2% share of an inheritance. The application was denied and the customer runs the risk of losing the downpayment, even though they would not become an owner through the inheritance in question, which only amounted to a few hundred Euros anyway".

• Rejected loan application = loss of downpayment

Officials of "Regatta" said they"ve encountered many situations where buyers expected being able to easily take out a loan through the program, were later denied the loan, and were at risk of losing their downpayment. The application norms underwent several revisions this summer, the lending conditions were not clearly explained, and this discouraged buyers. Even though it was initially announced that the review of a loan application would take a few days, reviewing a loan application takes 2-3 weeks at a minimum in the case of solid files.

• Studios and two-room apartments - buyer favorites

Several "Regatta" customers have loan applications under assessment by banks under the "First Home" program. The company has several transactions under way also as part of the "First Home" program, but it can"t estimate when they will be completed, due the bureaucracy of the program. Studios and two-room apartments are favorites among "First Home" customers.

"Regatta" officials say that for the "First Home" program to prove effective, it needs to clarify the bureaucratic issues, and the implementation needs to be streamlined. What"s more, the Government should expand the program, because a handful of transactions are not enough to unlock the real estate market.