Spaniards continue to opt for the homeownership regime rather than rent, in 2017 the ownership regime exceeded 76% compared to 17% of the rent in Spain, according to data from the INE. In addition, another of the characteristics is the indebtedness to acquire a property owned, in September of this year 22,488 mortgages were signed, a figure lower than the previous month but which represents almost 60% of the total homes purchased that same month.

However, getting a mortgage loan is not always easy or it is not possible to assume the conditions that are required. Before these situations, there are alternative financing options that can be advantageous for the owners.

Rent with Option to buy

Those who cannot afford a home choose to rent until they save enough money. However, this can be an intermediate step if you sign a lease-to-own. It is a recurring option to acquire home ownership until the necessary capital is achieved.

By signing this contract, both parties agree on a date of sale at a specific price, an amount that cannot be modified. Until the date of sale arrives, the tenant enters the rent every month, which will be discounted from the final price. This monthly rent is also set in the contract, although it can be modified according to the IPC if the owner establishes it.

Housing cooperative

Acquiring a home from a cooperative development does not imply that financing is not needed, however, the price of the property is generally lower, so the saving of the amount will be more affordable. The main objective of the cooperatives is the self-promotion of homes so that the promoter’s role of the intermediary is eliminated and housing is accessed at cost price, which can be between 20 and 30% lower than the market price.

In addition, the owners themselves are members of the cooperative, they have active participation in it, and, therefore, they decide on the design or construction of the house. However, in this option, it must be taken into account that the price of the house is not fixed and that throughout the construction process new costs may arise.

Payment postponed

Paying the final price of the house in installments is also an option. Specifically, there is the possibility of deferred payment with the resolutive condition, a private contract in which the parties agree to this form of payment through which the seller finances the buyer. However, the sale is not formalized if the buyer does not meet the agreed conditions. In that case, the property will once again be owned by the seller, although the buyer will be returned the amounts paid so far, less a penalty.

In case the seller wants to secure the operation, there is the possibility of deferred payment in which the property is kept by the seller until the payment is completed by the buyer. In this case, a domain agreement is included in the contract.

Family financing

Using family help to buy a home is also possible. However, on this issue, its tax treatment must be specially analyzed, especially if the amount is not going to be returned. In that case, it would be a donation and the corresponding taxes would have to be paid.

However, relatives can also demand that money back and a loan between relatives would be produced. In that case, the agreement must be formalized through a contract to set the conditions.

Real estate crowdfunding


One of the newer alternative tools is real estate crowdfunding. It is a platform through which several investors jointly acquire one or more properties. In this way, the buyer does not need to make a large outlay of money since it is a joint investment and, in addition, he will be able to obtain a return if he decides to rent the house.

Bridge mortgage

It can also happen that the owner acquires a home while waiting to sell another and does not want to maintain two loans at the same time. To avoid the new mortgage in that situation, you can resort to the bridging mortgage. It finances the entry costs of a new house and unifies the loans of the two houses into one for a period of 6 months to 5 years. In this way, when the old house is sold, your mortgage is canceled and a new loan is formalized with the new property.

This option does not avoid the mortgage, nor the costs that it entails, so it is important to analyze the conditions and, above all, take into account that it is a temporary solution until the sale of the old property is formalized.

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