OREANDA-NEWS. May 11, 2011. Bank SNORAS plans to provide soft housing loans for LTL 20 million to socially supportable families. The Ministry of Finance granted such limit to Bank SNORAS which participated in the publicly announced competition, reported the press-centre of Bank SNORAS.

“Soft housing loans are issued to residents upon attractive conditions; moreover, the state covers up to one-fifth of the credit amount. The persons, who are candidates for soft loans, will have a marvellous opportunity to purchase the desired accommodation or to renovate the present home; furthermore, the real estate prices are really attractive at the moment,” states Deividas Рipaila, the director of AB Bank SNORAS Sales Department.

The soft loans are designated for purchasing, building or reconstructing housing. These loans are granted to families or persons, who are entitled to the state support to acquire housing according to the Republic of Lithuania Law on the state support to purchase or rent and to renovate (modernize) apartment houses.
 
The state support for acquiring housing is provided to persons or families, whose declared available assets and the income earned within 12 last months before the day of submitting the application on granting the state support did not exceed the specific amounts:

1. The net annual income of a person without a family – 27 500 litas and the assets – 40 300 litas;

2. The net annual income of a family with two or three persons – 38 500 litas and the assets – 81 900 litas;

3. The net annual income of a family with four or five persons – 46 200 litas and the assets – 109 200 litas;

4. The net annual income per person in a family with six or more persons – 7 920 litas and the assets per person – 26 000 litas;

If a person takes a soft loan, Bank SNORAS finances up to 95 per cent of the value of the housing which is being purchased or pledged. The maximum soft loan period – up to 40 years. Loans are issued in litas, euros and USA dollars.

One person, having a right to obtain a loan under the preferential conditions, can be a candidate for a loan up to 180 000 litas, while a family with two or more members has an opportunity to obtain a credit up to 300 000 litas. Residents can be candidates for a loan up to 120 000 litas for reconstructing their housing as well as for adapting their housing to the needs of persons who are disabled, incapable to work or partially capable to work, regardless of a person's family status. The amount of the housing loan will depend on the value and the construction year of the purchasable housing or on the appraisal cost of the housing under construction as well as on the permanent income of the person or the family and on the amount of the already existing financial obligations.

Bank SNORAS has been providing soft housing loans since 2009. Last year the most active interest in the state supported housing loans was shown by residents of Klaipлda, Рiauliai and Vilnius districts, and the average sum of the desired loan was about 80 000 litas.