Social Accession Loan (SIP)
Verified 05 October 2020 - Directorate for Legal and Administrative Information (Prime Minister)
The Social Accession Loan (SIP) is a mortgage granted to people with modest incomes. It must be used to become the owner of the principal residence (by purchasing or having it built) or to carry out work there (for example, work to adapt to disability). To be eligible, one must meet income conditions, which vary according to the location of the housing concerned and the number of occupants. The SIP interest rate is capped.
The loan may be used in particular to finance the following operations:
- Purchase of land and construction of housing on that land
- Purchase of new housing
- Purchase of old housing and improvement works if necessary
- Work in an existing dwelling to save energy, to enlarge it (by extension or by raising it) or to transform a dwelling that was not intended for the dwelling. The amount of work must be at least equal to €4,000..
where the loan finances work, it must be completed within the time limit for repayment of the loan. It is possible to request an extension of time for work, in certain situations.
The dwelling must become the principal residence of the borrower no later than 1 year after completion of the work or purchase.
This period may be extended to a maximum of 6 years if the following 2 conditions are met:
- The accommodation will be occupied by the borrower from the date of his retirement
- The accommodation is rented until this date respecting specific rules
For a dwelling to be considered a principal residence, it must be occupied at least 8 months per year.
The following exceptions are allowed:
- Force majeure
- Health reason
- Obligation related to your professional activity (regular travel, office accommodation, ...)
- Lease in compliance with the conditions laid down
Your resources must not exceed a maximum amount, which depends on the location of your dwelling (zone A, B1, B2 or C) and the number of people living in the dwelling.
The amount of income to be taken into account shall be total of the reference tax revenues of the borrower and of the other persons who will inhabit the dwelling (when they are not connected with the borrower through taxation).
The tax revenues to be considered are those of year N-2 (for a loan application in 2020, this is the 2018 benchmark tax revenues listed on the 2019 tax notice).
Where to ask for the PAS?
You can obtain a SIP from a credit institution (example: bank) having entered into an agreement with the State.
It may be useful to compare the offer of PAS offered by different banks, as the proposed interest rate may vary within the limit of the authorized ceiling. This comparison is done using the RATE ..
It is possible to get a loan:
- to fixed interest rate
- or variable interest rate
- or with a flexible interest rate (fixed and variable).
The interest rate may not exceed maximum rate (ceiling) .. Within this limit, the interest rate offered to you depends in particular on the duration of the loan and the organization that offers the loan. Therefore, it is useful to compare offers from several organizations, using the RATE ..
The SIP can be reimbursed over a period of 5 to 30 years.
The loan agreement may provide for the possibility of modifying this term for
- or extend it to a maximum of 35 years,
- or reduce it.
Benefits of PAS
The PAS must be secured by a security right (mortgage or equivalent), but this guarantee is exempt from property advertising taxes.
There is a cap on the processing fee.
The notary's remuneration costs are reduced.
loan signed after 1to January 2020 does not qualify forAPL: titleContent..
The SIP may finance the entire real estate transaction.
However, it may not finance the following costs:
- Notaries' fees, i.e. transfer fees and notary fees
- Case investigation costs
- Possible costs of purchasing furniture to furnish the dwelling
The SIP may be supplemented in particular by the following loans or elements:
- Personal contribution
- Zero-Rate Loan (ZIP)
- Zero Eco-Loan
- Home Savings Loan
- Fixed rate loan less than or equal to a loan made in addition to a home savings account
- Loan Housing
- Additional loan granted to French repatriates from overseas holding a title of compensation
- Relay loan pending sale of previous dwelling
a SIP cannot be supplemented by a "conventional" mortgage.
- Building and Housing Code: D331-64Principles
- Building and Housing Code: Articles D331-65 to D331-70Conditions for granting
- Building and Housing Code: Articles D331-71 to R331-76Features
- Building and Housing Code: Article L 31-10-6Principal residence conditions
- Building and Housing Code: D31-10-6Derogatory conditions for leasing
- Decree of 4 October 2001 on the conditions for granting loans under the agreement
- Decree No. 2005-69 of 31 January 2005 on the purchase or construction of housing on the assumption of ownership
- Order of 30 September 2014 concerning the classification of communes by zone applicable to certain housing aids
- Decree of 30 September 2014 on loans with agreements
- Ministerial reply of 31 December 2019 on the borrowing of property by persons with disabilities
- Zero-Rate Eco-Loan (Eco-PTZ)Service-Public.fr
- Contract loanService-Public.fr
- Ratio of the agreed loan and the social accession loan (PAS)Société de gestion des financement et de la guarantee de l'accession sociale à la propriété (SGFGAS)
- Real Estate Loan: fixed or variable interest rate, the APRFinance for All