How do you buy when you are a freelancer?

Becoming an owner is a goal for many freelancers. However, access to credit can be more difficult for a self-employed person than for an employee on a permanent contract. Banks demand financial stability and are often wary of irregular income of a freelancer.

However, buying real estate as a self-employed person is not impossible. With a Real estate loan file well-prepared, a good banking history and sometimes the help of professionals such as a broker or a real estate hunter, you can get a home loan and carry out your project.

In this article, we explain the challenges of freelancing, the solutions to convince banks and the mistakes to avoid.

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1. The challenges faced by freelancers

Irregular revenues that worry banks

Unlike employees on a permanent contract, a freelancer cannot justify fixed pay slips. Ses regular earnings vary according to contracts signed, customers and workload. Banks see this instability as a risk, which can complicate theaccess to credit.

The classic criteria for banks to grant a Real estate credit are as follows:

• One stable and sufficient income to cover the monthly loan payments.
• A seniority of at least 2 to 3 years of activity.
• One debt ratio less than 35%.

So, A freelancer starting out And who has not yet a financial situation solid will have difficulty convincing a bank.

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The absence of pay slips and the need for solid financial balance sheets

Banks generally require The last three payslips to grant a loan. However, a freelancer does not have one. It must then provide:

• Ses last two or three balance sheets (annual report).
• Ses account statements personnel and professionals over the past six months.
• Ses customer contracts and its invoices to prove the recurrence of income.

A freelancer with unprofitable balance sheets or irregular banking management will find it difficult to get a home loan.

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2. Solutions to build a solid case

Take care of your banking profile

Banks analyze financial behavior of borrowers before granting a loan. So they're going to look at your bank accounts, account statements, your spending, your possible payment incidents and your savings.

Here are some best practices to adopt at least one year before submitting your mortgage application :

• Avoid bank overdrafts and prove sound management.
• Putting money aside regularly to show a capacity to save.
• Do not accumulate consumer credits, which may be perceived as a risk factor.

If you want to increase your chances of getting a loan, having a co-borrower, like your life partner, can be an asset in strengthening the solidity of your file.

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Increase your personal contribution

In most cases, banks ask a contribution of 10% of the amount of the real estate purchase. This money is used in particular to pay for notary fees.

The higher your intake, the more likely you are toget a home loan. Substantial savings demonstrate a good financial management and reassures banking institutions.

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Use a mortgage broker

A broker can be a valuable ally for find a bank ready to finance you. It helps you build a solid case and negotiate the best terms ofreal estate loan. If you want to maximize your chances, you might consider partnering with a co-borrower, such as a life partner or family member, which can make your case with banks even stronger.

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Wage portage: an interesting alternative

If your sector of activity Allow it, the Wage portage may be a solution to secure your file. In fact, Wage porting allows you to receive pay slips, which reassures banks and facilitatesaccess to credit.

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3. Financial aid for freelancers

The zero interest loan (PTZ)

The Zero Rate Loan (PTZ) Is a State aid to finance part of the real estate purchase without paying interest. It is reserved for first-time buyers (those who did not own their main residence during the last two years).

This device is subject to income limits, and only concerns the purchase of a property nines or a home in need of major renovation work.

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Affordability at controlled prices

Some big cities like Paris, Lyon, Bordeaux, Marseille or Toulouse offer accommodations at a controlled price, that is to say lower than market prices. This aid is subject to conditions of regular earnings and only concerns New homes.

Source: Official public service website.

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Cumulating several assistance devices

Freelancers can combine several grants (e.g. PTZ + controlled price) under certain conditions. It is therefore essential to Be sure to inquire before buying.

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4. Call on a real estate hunter

A real estate hunter, like MeCaza, can be a valuable asset for find a property that suits your budget and your borrowing capacity. It also assists you in setting up your Real estate loan file, by optimizing your chances with banks.

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5. Mistakes to avoid

Underestimate your borrowing capacity

Many freelancers overestimate their ability toreal estate loan or, on the contrary, think they cannot buy. It is essential to Do a loan simulation before launching.

Neglecting the management of your accounts

An unstable banking history can damage your file. Anticipate at least one year before applying for a loan to avoid any unpleasant surprises.

Ignore the financial aid that is available

Do not take advantage of devices like the PTZ Or theAccess at controlled prices is a mistake. Find out about local and national supports to reduce your financing.

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Conclusion

Buying real estate as a freelancer is a feasible project, as long as you prepare your Real estate loan file. It is essential toensure financial stability, of Set money aside and to have a good banking history.

Call on a Real estate hunter suchlike MeCaza can maximize your chances of success. By planning ahead and adopting a strategic approach, you will soon be able to become the owner of your main residence or consider a rental investment.

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❓ FAQ

Can a freelancer get a mortgage as easily as an employee?

No Banks consider freelances' earnings to be less stable. They generally require 2 to 3 years of activity, positive balance sheets, a controlled debt ratio and good banking management. However, a well-prepared file can convince.

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What documents does a freelancer need to provide for a home loan?

A freelancer must present his financial statements for the last 2 to 3 years, his account statements (personal and professional), proof of income (invoices, customer contracts), as well as his tax return. Exemplary banking behavior is also essential.

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Is there help for freelancers who want to buy real estate?

Yes. A zero-interest loan (PTZ), affordable home ownership in certain cities, or other local assistance may be available to the self-employed, subject to resource conditions and depending on the type of housing (new or to be renovated).

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Can a real estate hunter help a freelancer buy a property?

Yes. A real estate hunter like Mecaza can help you target a property adapted to your means, optimize your banking file and guide you towards relevant financing solutions. It acts as a facilitator of the project.

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