Everything you need to know about the "LPA" real estate loan:
Assisted Promotional Housing (LPA) is a program established by the State to facilitate homeownership for middle-income households.
This system allows citizens to purchase a new finished home or a home under construction (sold off-plan) at a regulated price, thanks to state financial assistance and the possibility of obtaining a subsidized-rate bank loan.
Who is eligible for Assisted Promotional Housing:
To benefit from the LPA program, applicants must meet the following criteria:
- Nationality and Residence: Be of Algerian nationality and reside in Algeria;
- Income Level: The income level must be less than or equal to six (06) times the Guaranteed National Minimum Wage (GNMW)
- Property Ownership: Not own a home or a plot of land for construction, and neither the applicant nor their spouse must have previously received state financial aid for the construction or purchase of a home.
Financial Structure:
The financing of an LPA home is based on several elements:
- Personal Contribution: The beneficiary must provide a personal contribution, the amount of which is determined based on the price of the home;
- State Aid: Direct aid is granted based on household income. The amount can reach 700,000 DA for households with incomes less than or equal to four (04) times the SNMG, and 400,000 DA for those with incomes greater than four (04) times the SNMG but not exceeding six (06) times the SNMG.
- Bank Loan: Beneficiaries have the option to take out a subsidized-interest loan to cover the remaining cost of the home.
Real estate Loan Applicant:
The loan applicant must provide the following documents:
- Loan application form (to be completed at the Branch);
- Family civil status record;
- Copy of biometric identity card;
- Certificate of residence;
- Notarized, registered, and published off-plan sale contract (VSP), accompanied by the guarantee certificate issued by the Guarantee and Mutual Surety Fund for Property Development (GMSFPD).
- Copy of the decision granting the direct aid issued by the National Housing Fund.CNL
- For salaried applicants:
- Pay slips for the last three months;
- Recent certificate of employment;
- Annual Salary Declaration (DAS) for private sector employees.
- For non-salaried applicants:
- Proof of activity (commercial register or licence);
- Tax certificate (Series C20 for the last three financial years);
- Cleared tax assessment or repayment schedule.
- For retirees:
- Income certificate issued by the National Retirement Fund CNR
