The social accession loan (PAS) is intended to encourage access to property for families with modest incomes. This real estate loan is granted to finance the purchase of a main residence or renovation work to improve the property and save energy. What are the conditions to benefit from it? How to obtain a social accession loan? What is its interest rate? We’ll explain it to you.
Capital Video: Social Accession Loan
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What is the social accession loan?
A loan to promote home ownership
The PAS is a real estate loan granted to households with modest incomes. It allows them to become the owner of their main residence by financing its purchase or construction. But also to carry out work to improve housing conditions or its energy performance. The social accession loan implies that the home must become the family’s main residence no later than one year after its purchase or the end of the work.
Real estate operations financed by the social accession loan
The PAS makes it possible to finance either:
- the purchase of land and the construction of real estate on this land,
- the purchase of a new home,
- the purchase of an old home and possible improvement work,
- work in existing accommodation to save energy, to enlarge it or to transform premises which were not intended for habitation into accommodation, provided that the amount of work is at least equal to 4,000 euros.
To note : the PSA should not be confused with the PSLA which is another device for access to property for households with modest incomes.
What are the conditions to benefit from PAS?
Income conditions
The social accession loan is reserved for people with modest incomes who wish to acquire or renovate their main residence.
Please note: to be considered a main residence, a home must be occupied at least eight months out of 12, except in cases of force majeure or health reasons.
Eligibility conditions for the social accession loan
To be eligible for PAS, you must:
- be French or be a foreigner holding a residence permit;
- occupy the property permanently for the entire repayment period of the loan (five to 30 years maximum). However, in certain situations (professional mobility, purchase with a view to retirement, etc.), rental of the property on a temporary basis (six years maximum from the date of completion of the work) is possible;
- benefit from income below certain ceilings. The borrower’s resources must not exceed a maximum amount, depending both on the location of the accommodation (zone A, A bis, B1, B2 or C) and the number of people occupying it.
Resource ceilings to benefit from the PAS in 2024
The resources taken into account correspond to the reference tax income of all people intended to occupy the accommodation. The tax year used is the penultimate before the date of issue of the loan offer (for a loan request in 2024, the reference tax income to be used is that of 2022, appearing on the notice of tax of 2023).
The income not to be exceeded in 2024 is as follows:
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What is the amount of the social accession loan and its maximum interest rate?
The amount varies depending on the borrower’s profile
The amount of the social accession loan is not capped. It can finance the entire cost of the investment. In practice, it is set proportionally to the borrower’s resources.
A maximum fixed or variable interest rate capped
Whether fixed or variable, the interest rate of the loan cannot exceed a maximum rate, set by regulation. As of September 1, 2024, the variable rate PAS interest rate is 5.45%. At a fixed rate, it is:
- 5.90% for a loan over 20 years;
- 5.80% for a loan of 15 to 20 years;
- 5.65% for a loan of 12 to 15 years;
- 5.45% for a loan of less than 12 years.
Within these limits, the interest rate is modulated according to the duration of the loan and the financial institution distributing it. A borrower will therefore have an interest in competing between several banks to select the most favorable offer.
Zero rate loan (PTZ): conditions, ceiling and amount
What is the repayment period for the social accession loan?
Maximum duration
The loan is distributed by financial institutions having entered into an agreement with the State. It generally lasts between 5 and 30 years, but can be extended up to 35 years.
PAS reimbursement conditions
The loan must be guaranteed in the form of a mortgage or deposit, but it is exempt from land registration taxes. Application fees are capped at 500 euros.
During the reimbursement period, the accommodation cannot be either:
- transformed into commercial premises,
- allocated to seasonal rental,
- assigned to furnished rentals for more than four months per year,
- used as a second home or as an accessory to an employment contract.
What are the differences between a social accession loan and an approved loan?
The main difference between the two types of loan lies in the conditions of attribution. In fact, the approved loan is not subject to resource conditions, so the PAS is reserved for borrowers whose income does not exceed a certain ceiling.
The PAS is reserved for financing the borrower’s main residence, while the classic conventional loan can be used to finance the purchase of a second home or even a rental property.
Can PAS be combined with other loans?
If the real estate loan was signed after January 1, 2020, it is no longer possible to obtain APL for new acquisitions financed by the PAS. On the other hand, the PAS can possibly be supplemented by other financing:
- PTZ,
- PEL,
- housing action loan,
- bridging loan, etc.
HLM: social housing application, file and ceiling
What are the advantages of the social accession loan?
The advantages of PAS are numerous:
- Its interest rate is capped.
- The costs of processing the PAS application file cannot exceed 500 euros.
- Total absence of additional costs in the case of a flexible loan.
- Notary fees are reduced.
- The loan must be guaranteed by real security exempt from land registration taxes.
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