Loans for housing construction in rural areas
Applying for a loan for rural areas
You apply for a loan for rural areas on HMS My pages. There you enter information about yourself, the estimated construction costs and what kind of loan you wish to take.
It is possible to apply for a loan for up to 5 years from the time the property is weather-tight.
It is possible to apply for a loan for up to 1 year after the property is complete and has been given fire insurance value.
In special circumstances it is possible to apply for an exemption from time limits.
Additional documents
The application has to include:
Financing and project plan.
A cost estimate for a completed property.
Confirmation of construction insurance.
Confirmation of refusal by other credit institutions.
Confirmation of housing need.
Last tax report’s tax assessment results.
Next steps
Following your application, you will be directed to CreditInfo for a credit assessment, to check your credit score.
When you have submitted your application you will receive confirmation of receipt by email. One of our loan advisors will contact you within 3 working days. If additional documentation is requested, it is important to submit them within the given deadline, otherwise the application will lapse.
You can always check the status of your application here HMS My pages.
Loan approved
The loan is paid out step by step.
When the property is weather-tight (building stage 4).
Loan can be up to 80% of the building cost at this stage.
When the property receives fire insurance value (building stage 7).
Additional loan for up to 80% of the total construction cost or market value (the lower amount applies).
As soon as a loan application has been approved and the appropriate milestone has been reached, the loan is sent to documentation. This usually takes 1-3 business days.
When the loan documents are ready, you can pick them up during our opening hours in Borgartún 21, Reykjavík and take them to the District Commissioner’s office (Sýslumaður) for registration (þinglýsing) along with the purchase agreement.
When the purchase agreement and the loan documents have been registered at the District Commissioner’s office (Sýslumaður), you can either mail them to us, or bring them to our office in Borgartún 21, Reykjavík.
The first interest date is 5 days from the issue date of the loan. The first instalment of the loan is on the first day of the second month thereafter.
Example: The first interest date is January 10. The first instalment of the loan is March 1.
You can check the status of your loan and make extra down payments here HMS My pages.
Loan denied
If a loan application is denied, you will receive an email with our formal ruling and there you can see our reasons for refusal. If some documents are missing or if your situation has changed in some way, you can apply for a revision of your application and provide us with new information.
HMS rulings can be appealed to the Welfare Appeals Committee
Service provider
Housing & Construction Authority