State program for military personnel

Under the State program for affordable housing for military personnel, the Company offers a loan product to purchase home from the secondary market, as well as for the construction of a single-family house.

State program for military personnel

State program for military personnel

Under the State program for affordable housing for military personnel, the loan conditions are as follows:

Beneficiaries

Selected by the Ministry of Defense of the Republic of Armenia on a competitive basis

Loan amount

Maximum AMD 25,65 million

Loan term

Minimum of 10 years

OTI*

Maximum of 45%

Annual interest rate

Defined by PFIs. Interest rate shall not exceed 13.00%

Interest rate type

Fixed

Loan currency

AMD

Interest rate subsidy

5%, which is paid by the State**

Repayment type

Annuity

Insurance

  • Pledged property insurance, whose coverage must be at least equal to the loan amount.
  • Insurance for borrowers in case of death due to an accident, where the coverage must be at least equal to the loan amount.
  • In case of purchase of a house, down payment insurance is also required if LTV exceeds 70%, and an additional property is not pledged as collateral.

Down payment

In case of purchase of a house, minimum 30% (minimum 10% in case of down payment insurance*** or additional real estate collateral)

Down payment compensation

AMD 2,5 mln, which is paid by the State**

Collateral

  • In case of purchase of a house, property to be purchased (additional real estate collateral is required if the down payment is less than 30% and the borrower does not have down payment insurance)***
  • In case of single family house construction, land or the building under construction.

*OTI calculation includes monthly payments of all the loans that a borrower has, including the mortgage loan.

**The Company does not pay and under any circumstances has no obligation to pay either interest rate subsidy or down payment compensation to beneficiaries from its own resources. It is the obligation of the State to do so.

*** In case of down payment insurance no additional collateral is required.