The Saudi Real Estate Development Fund approved several decisions, including implementing regulations for investment loans and raising the accepted building age to 25 years for all residential real estate loan beneficiaries, subject to verification of the building’s technical requirements.
According to the Saudi Press Agency (SPA), the decisions approved by the fund’s board allow anyone wishing to build one or more additional homes on a building previously financed by the fund to use an approved loan belonging to a child or relative, with the additional unit registered in that person’s name.
The fund also approved joint loans for groups of borrowers to construct several homes on one plot. These would later be subdivided, with a separate title deed for each unit in the borrowing owner’s name. It also approved financing under an off-plan sales system, allowing approved borrowers to buy off-plan homes from developers qualified for the program. The fund will finance construction up to the loan amount and disburse installments through a designated escrow account under its payment rules.
In a statement on Thursday, the fund said its board had also approved an early home ownership program. Borrowers on the waiting list whose loans are expected to be approved within the next three years may buy completed or off-plan homes from developers, with the fund guaranteeing payment of the loan amount to the seller once the loan is approved.
The fund also approved the transfer of a loan application from one applicant to a first-degree relative—parents, children, or siblings—who meets the loan conditions, when humanitarian circumstances justify the transfer.