Loan without income

Information in this blog post is not valid anymore but we're leaving it here as a memory of good old times.

Many people earn money, but cannot prove their income in a standard way (via the Social Insurance Institution or tax returns). Even such a person can get a mortgage!

Today, banks also provide mortgage loans to people who cannot document their income officially. In such a case, the client confirms their income submitting a declaration of honor in which they state how much money they earn on average and they sign it in manuscript.

Loans without income can be divided into several groups:

• Loan of up to 50% of the value of the property
• Refinancing (consolidation) loan
• Loan for members of chambers, professional associations and board members of an a. s. (public limited company)
• Loan for the self-employed and owners of an s. r. o. (limited company)

Loan of up to 50% of the value of the property

This type of mortgage loan is provided only by a few banks. It is a loan where you are limited especially by the value of established properties.

You can prove your income with a declaration of honor, and the bank does not investigate its amount. However, pay attention to the restrictions!

There are limitations on the property which must be inspected, and it must be a FAMILY HOUSE or a FLAT in the selected location. It is normally regional and district towns, or their immediate surroundings. The bank also verifies your job, your employer. It does not check the amount of income, but the fact that you are really employed. For those self-employed and owners of an s. r. o., arrears at the tax office, the social insurance company and the health insurance company are verified.

For this type of loan, the banks check the payment discipline more closely.

The downside of this loan is its price! A high processing fee and high interest rate.

Refinancing (consolidation) loan

This type of mortgage loan is provided by almost all banks, which offer different conditions and regulations. In the case of the refinancing loan, the banks will also provide 100% financing. You can prove your creditworthiness by repaying the loan you want to refinance properly and on time. You can refinance a property-secured consumer loan, mortgage, consumer loans (bank, non-bank), leasing or building loan.

The basic rule is that the refinanced loan must be repaid for a minimum of 10-12 months and the repayment of the original loan, or the sum of repayments of original loans, must be higher than the repayment of the new loan.

The price of these loans is favorable. The client will get such conditions as if they were properly documenting their income.

Loan for members of chambers, professional associations and board members of a. s.

Such mortgage loan is provided by only a few banks. The client just has to submit their chamber membership certificate, or extract from the Commercial Register of the Slovak Republic, and a signed declaration of honor stating their income, and the bank can provide them with a loan of up to 100% of the value of the property. However, there are also certain limits. It only applies to selected chambers, whose list the bank updates continuously. There is also a limit on the maximum amount of the loan that is set at around 250,000 Euros.

The price of these loans is also favorable. The client will get such conditions as if they were properly documenting their income.

Loan for the self-employed and owners of an s. r. o.

This type of mortgage loan is provided by almost all banks, which offer different conditions and regulations. With this type of loan, the banks will also provide 100% financing. You can prove your income by the company turnover, or the account turnover. The banks usually accept 10% of the turnover. In some business areas, even a higher percentage (up to 80%) can be accepted.