Housing Program for Families Displaced from Nagorno-Karabakh

Under the State Support Program for Providing Access to Affordable Housing for Families Forcibly Displaced from Nagorno-Karabakh, the Company refinances loans provided for the purchase of an apartment or single-family house, the construction of a single-family house, and the renovation of an apartment or single-family house.

Housing Program for Families Displaced from Nagorno-Karabakh

Housing Program for Families Displaced from Nagorno-Karabakh

This loan product is intended for the purchase of a house or apartment, the construction of a single-family house, or the renovation of a house or apartment that complies with the Program's minimum eligibility criteria.

Beneficiaries

Persons defined in point 5 of Annex 1 to Decision No. 710-L of the Government of the Republic of Armenia dated 16 May 2024.

Loan amount

Up to AMD 35 million.

Loan term

At least 10 years.

OTI*

Up to 45%, calculated on the portion not covered by state support.

If the loan amount does not exceed state support amount, this limit does not apply.

Annual interest rate

Up to 11.75%, if the loan amount does not exceed state support amount.

Interest rate type

Fixed

Loan currency

AMD

Repayment type

  • Equal monthly payments (annuity), or

  • Equal monthly principal repayments.

Insurance

  • Pledged property insurance, with coverage of at least the portion of the loan that exceeds the state support amount.

  • Insurance that repays the mortgage loan if a borrower dies as a result of an accident, with coverage of at least the portion of the loan that exceeds the state support amount.

If the loan amount does not exceed the state support amount, the above insurance policies are not required.

State support amount for principal payments**

The amount of support is set by point 11 of Annex 1 to RA Government Decision No. 710-L dated 16 May 2024 and is determined per family member, depending on the settlement chosen by the beneficiary family for redeeming the certificate.

State support amount for interest payments**

Set by point 11 of Annex 1 to RA Government Decision No. 710-L dated 16 May 2024.

Down payment

Set by sub-point 5 of point 10 of Annex 1 to RA Government Decision No. 710-L dated 16 May 2024. Currently, it is 20%.

Collateral

  • For purchase loans: the property being purchased.

  • For construction loans: the land plot being developed.

  • For renovation loans:

-if the loan amount exceeds neither the positive balance remaining after the certificate is redeemed nor AMD 5 million, no collateral is required;

-if the loan amount exceeds the positive balance or AMD 5 million, the Company’s collateral requirements for renovation loans apply.

*OTI calculation includes monthly payments of all the loans that a borrower has, including the mortgage loan.

**The Company does not pay and under any circumstances has no obligation to pay either interest rate or principal support amount to beneficiaries from its own resources. It is the obligation of the State to do so.

More detailed information on the state support program can be found here.