Loans for housing construction in rural areas

Loans for rural areas are provided for the construction of affordable housing in areas where financing is difficult to obtain or where interest rates are much higher than in other regions of the country.

With these loans, HMS wants to address the imbalance between construction costs and market prices in parts of the country, thus ensuring access to loans as in more active areas.

You can apply when a building is weather-tight, provided the construction cost is known. Until then, the project is usually financed by personal funds or other loans.

• Property value (Fasteignamat) has to be under ISK 73 million.

• The total loan amount per property can be a maximum of ISK 44 million.

• A loan can be up to 80% of the construction cost, although never more than ISK 6 million above the market value.