Obtain a real estate loan with a seasonal employment contract

Whether your situation stems from an obligation or is the result of a choice of life, working as a seasonal worker may pose a problem the day you borrow to buy your home. Our advice to help you carry out your real estate project.

Some town halls and urban communities offer additional assistance to the zero-rate loan. This aid can take the form of a subsidy, a discount on the sale price per square meter of new housing or an interest-free loan. Ask the housing services of the municipality where you buy the property. 

The nature of the employment contract

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The status of seasonal workers is widely spread in the sectors of agriculture (harvesting, picking, harvesting …), tourism or catering and banks know its particularities. To obtain a mortgage, you must have signed a work contract ( one seasonal worker in 8 does not sign a contract ) and show a sufficient history of activity over the past years.

The importance of the duration of the CDD

The duration of the CDD (generally from 2 to 6 months depending on the type of seasonal tasks) is also of great importance since it determines the amount of your annual income.
Good to know: if you have held a job in a hotel or in a coffee shop during the whole opening period for several years in succession, your contract may be like a permanent contract. Ask your employer or the local labor inspectorate.

The renewal clause

A renewal clause may be inserted in the contract when the tasks are to be repeated each season in the same period. Although constituting a simple priority made to the seasonal worker, the inclusion of this clause brings a little stability to your professional situation and constitutes a plus in your file.

Elements of risk analysis

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Know that the bank is carrying out a global study of your situation and each element is scrutinized by the risk analysis services. To put the most chances on your side, you must make sure that your record has the most positive points.

Personal contribution

The tightening of the conditions of access to real estate credit from network banks and the end of the financing activity of “Crédit Immobilier de France” (CIF) make today It is more difficult for candidates who have no capital to acquire the property. Fortunately, some subsidized loans are included in the calculation of personal contribution.

In general, banks require that you finance at least 10% of the purchase price plus notary fees and guarantee fees. For example, if you buy an apartment for $ 150,000, you must contribute $ 15,000 as a contribution and finance the ancillary costs of approximately $ 13,000, for a total of $ 28,000.
Important: the PTZ cannot be used to finance notary fees.

Keeping bank accounts

You have to prove to your bank that you are a good manager. This will analyze your bank statements for the past 3 months. If your accounts show significant overruns or worse still, payment incidents, you will not score points.

The regularity of activities in recent years

One of the essential aspects of the risk analysis is the regularity of the different contracts signed by the seasonal worker over several years. If, for example, you have worked regularly during the previous 5 years and moreover, with the same employer, the bank will certainly take this into account.

You complete with another activity

If you combine several salaried jobs or if you also work as a self-employed entrepreneur, the bank will calculate your average income on the basis of all the remuneration received in previous years (between 3 and 5 years depending on the lender). Again, the regularity of activities is of paramount importance.

The professional situation of the co-borrower

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Your spouse’s professional situation can work in your favor if the latter has a permanent contract. Indeed, if the co-borrower’s income is stable, the risk linked to your seasonal worker contract will weigh less heavily in the balance.

In conclusion: it is possible to obtain a mortgage, even without a stable income. Your file must nevertheless contain positive points: contribution, sufficient activity history, low debt ratio. Articles that should interest you

  • The important elements of negotiating a home loan
  • State aid to help young people become homeowners
  • Real estate purchase by a couple with one of the spouses on a fixed-term contract
  • How to borrow when you don’t have a permanent contract

Have you received a debt collection claim?

Unpaid bills and subsequent collection claims are not pleasant – neither to the debtor nor to the debtor. Here you can read some advice on how to act if you have received one collection claim.

Debt collection is both un nice and expensive. If you have a debt collection claim, you must pay the debt collection fee in addition to the original claim. A debt collection fee is a type of compensation you must pay to cover the costs the creditor or collection agency has incurred at the time of recovery. Of course, the best thing you can do once you receive a debt collection is to pay as quickly as possible.

 

Words and expressions related to debt collection

Words and expressions related to debt collection

If you are unable to pay, it is always advisable to contact the debt collection agency. In many cases, repayment agreements can be made that will prevent the collection agency from proceeding with, for example, legal steps on your claim. It is always seen as positive that you make contact and show that you want to make up for yourself.

If you have received a debt collection claim, you will most likely come across words and phrases you have not heard before. Below is a list of words and phrases that may be helpful to know:

 

Payment Encouragement

 

When a claim has been received for collection and the payment deadline has expired at least 14 days, you will be sent a written payment request to either pay or object to the claim within a period of at least 14 days. If you have not submitted your objections to the claim at an earlier date, this deadline will be initiated before legal recovery of the claim.

 

Legal recovery

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If you have failed to pay the claim within the time limit of at least 14 days set in the payment request and your claim is not disputed, legal recovery will be initiated. The debt collection agency or creditor must initiate a legal action within six months of sending the payment request, otherwise a new payment request must be sent to you.

 

Payment remarks

 

If you do not pay your debt, one of the biggest consequences of this will be that you receive payment notes. The payment notes are registered with credit reporting agencies, and for example, banks do not in most cases want to lend you if you have payment notes.

A payment note should be deleted immediately after you settle for it. As a rule, a note should be deleted after four years.

 

Good debt collection

Good debt collection

 

The creditor or collection agency must act in accordance with good collection practice. That is, they must not use methods that expose you to unreasonable pressure, harm or inconvenience.

 

Avoid debt collection

 

Of course, the best thing is to avoid debt collection in its entirety. If you have many expensive small loans and credit cards, you may want to apply for a refinance. With a refinance, you can pool all your small loans and credit cards into one, larger, loan. This way you can achieve a lower monthly amount, lower interest rates and you only get a loan to deal with – which makes the situation much clearer.

 

Planning is the key

debt payment

 

If you have a strained economy, plan ahead. Get an overview of what bills are coming when, and create an overview of other expenses. Then set up a budget that you can live with, where you prioritize the important things like loans, electricity etc. Read this blog post and get 8 savings tips for a more transparent personal finance.

Remember that it is important to pay your bills on time, when a claim for debt collection becomes immediately much more expensive. If you do not have the opportunity to pay – contact as early as possible and have a dialogue with the creditor / debt collection agency. It always helps to be open about the situation and set a repayment plan.

Loans for unemployed young people

 

For lenders, young people are a very special category, in that in most cases they do not have a sufficient credit history to be able to guarantee obtaining a large sum of money.

Other cases that may limit obtaining funding for younger people are cases where they have a fixed-term job or are out of work. We deal with the first case in this article, we talk about the second case now, so read on.

Loans for Jobless Youth: limits and opportunities

Loans for unemployed young people are solutions that can be requested from banks or financial companies provided that there are additional guarantees that cover the risks for the institution that grants the loan.

But, we ask ourselves, how likely is it to be able to obtain loans among unemployed young people? What are the chances of being able to find a job for anyone under 25/35 years old and without a job?

Loans for unemployed young people: what are the limits for funding for unemployed young people?

Loans for unemployed young people: what are the limits for funding for unemployed young people?

The fundamental condition for obtaining loans for young people, even if unemployed, is precisely the provision of adequate guarantees, which are requested by the bank or credit institution to cover risks.

Loans for young people are usually referred to as long as the applicant is around 35 – 40 years old.

The difference compared to other financing solutions could often be the interest rate applied to the loan, sometimes more advantageous than traditional personal loans.

A concrete example of this are mortgages for the first home, solutions with which everyone and especially young people can buy their first home. Often, in fact, these loans to buy a house have more advantageous interest rates compared to classic mortgages, used to buy properties beyond the main residence house.

What alternatives are there?

It is really difficult for a young jobless person to find a loan that is really convenient.

So what alternatives can there be? What advice can you follow?

  • Choose small loans. The lower the amount required, the easier it is to get credit. So, being able to limit your request to only USD 1,000, for example, could increase your chances of success.
  • Choose lenders where you are “known”: if, for example, you already have a bank account, or if your parents have long been customers of a certain bank, it may be easier to be successful in question;
  • Opt for loans between individuals: it is a loan that, in some cases, may be easier to apply for and obtain. This is not always the case, also because the companies that manage loans between individuals are real financial companies authorized by the bank , but sometimes solutions could be found which, elsewhere, are not found;
  • Contact relatives and friends: you can also make loans between relatives, free and non-interest-bearing. Think of parents who lend money to a child, for example. The basic rule is that the payment is traceable (bank transfer, for example).

Loans for unemployed young people without guarantees

As anticipated, the presence of a guarantee is fundamental to be able to obtain loans for the unemployed, without it the response from the lender will most likely be negative.

Having said that, what guarantees would be needed?

  • personal guarantee, ie a guarantee, ie the guarantee provided by another person (a parent, relative, partner, friend) with which he or she undertakes to pay the installments if the main debtor (ie, who requests the loan) does not fulfill;
  • real guarantee, for example in the case of renting a property, or if you have other fixed monthly income with which to guarantee the regular payment of the installments.

In both cases, however, it must be kept in mind that these are always secondary guarantees, ancillary to the main one, which in any case remains the presence of a job.

For this reason, unemployed young people may still not be able to obtain credit from a bank or financial institution.

Loans for unemployed to start business

For all young people who want to start a new economic activity there are entities, regional, which have provided funds to be granted as non-repayable loans or as loans at subsidized conditions, with which to start a new economic activity.

In this case, depending on the conditions of the loan, you can also receive the entire sum.

In this case, the guarantee is usually offered by the organization organizing the competition, whether it is the Region, the State or directly the Union.

Loans for young housewives

Loans for young housewives

A housewife, or a woman who does not work but who has decided to stay at home, does not have great opportunities to borrow money because that of the housewife is an unpaid job and, as such, does not provide the right economic guarantee.

Despite this, there are some financial companies that offer loans for housewives, we have already talked about it here on Loans Online , whose main characteristics are generally two:

  • however, they ask for guarantees, which can be provided by the husband or partner;
  • the sum of money that can be requested almost never exceeds 1,000 / 2,000 / 3,000 dollars (therefore they are small personal loans).

Loans for unemployed young people, in conclusion

We said, therefore, that finding loans for unemployed, unemployed young people is not easy and that it is essential to offer guarantees, even if there are “ad hoc” solutions.

We have said that it is difficult to obtain credit for a young person without a job, and we also confirm this in closing. The absence of a job, added to the young age, makes it really complex to be able to obtain credit, often even for small amounts.

However, trying does not harm, provided you know what to do if the loan is refused.