Housing EE and Regional loans

Energy Efficient Loans (the EEL) and housing loans designed for regions of Armenia are offered under Housing Finance Program Phase 4th , which is financed by KfW bank and administered by  National Mortgage Company and originated by First Mortgage.

The objectives of the Program are aimed at:

• Development of overall mortgage market in the Republic of Armenia,
• Development of housing finance in regions, and
• Development of EEL standards in housing finance sector.
• Loan Amount: for home acquisition up to 25,000,000 AMD
• Loan Purpose: Energy efficient loans for home acquisition and/or renovation of a residential property.
• Loan Currency: Armenian dram
• Loan Term: 10-20 years.
• Interest Rate:  fixed interest rate of 10% per annum.
• Renovation Loans: Loan Amount from 5,000,000 to 25,000,000 AMD
• Loan Term: 5-20 years.
• Interest Rate: fixed interest rate from 10% per annum.

2. Energy EfficientLoans for regions of Armenia

• Loan Amount: For home acquisition up to 25,000,000 AMD
• Loan Currency: Armenian dram
• Loan Term: 10-20 years.
• Interest Rate:  fixed interest rate of 10% per annum.
• Renovation Loans: home renovation/improvement loans from 2,000,000- 25,000,000 AMD
• Loan term: 5-20 years.
• Interest Rate: fixed interest rate of 10% per annum.
• Home Construction Loans: home construction loans of up to 25,000,000 AMD
• Interest Rate:  fixed interest rate of 10% per annum
• Loan Term: 10-20 years
• Collateral/Security: Pledge of a residential property.
• Insurance: Personal accident and property insurance coverage is required.
• Closing Fee: 1% closing fee is charged from the total loan amount but not less than 75,000 dram.

• Prepayment Penalty: Full or partial loan prepayments are permitted during the 1st and 2nd years of loan servicing, subject to 1% penalty of the amount prepaid. No prepayment penalty will be imposed effective from the 3rd year of the loan servicing
• Default Payment Rates: The Borrower shall pay a late payment fine equal to 2% of the amount due per day when the Borrower defaults on any consecutive loan and/or interest payments .