with unprecedented effort Facilitate access to housing of young people In Spain, the Government has launched an innovative initiative that aims to act as a lifeline in the vast ocean of the real estate market. The new policy, which includes Government support up to 20% of the mortgage valuearoused great enthusiasm among prospective homeowners, especially among home seekers. youth mortgage assistance.
This government measure could revolutionize the way young people buy their first homes. Promises to meet the input of funding support House And taxes of the sale, which usually represents about 10% of the price of the house. This mortgage assistance for youth, currently implemented in the Autonomous Communities of Madrid, Murcia and the Balearic Islands, has now been expanded to the national level with the expectation that it will benefit 16.6 million people in Spain.
New mortgage help for these teens
As reported by real estate portal Fotocasa, the procedure is simple: The government will act as guarantor for up to 20% of the mortgage through a security line from the Official Credit Institution (ICO).. that means buyers can apply for a 100% mortgage with the Government’s support of up to 20% of this amount. Therefore, this new youth mortgage assistance program enables young buyers to save only 10% of the total home price instead of saving 30% of the home’s value for the down payment.
To illustrate how this guarantee works, let’s consider a scenario where a young prospective home owner wants to buy a house for €100,000. Prior to this policy, the buyer would have to save 20,000 Euros in addition to accounting for additional costs such as sales taxes for entry. With the new 20% guarantee offered by the government, the bank can loan 100% of the price of the house, meaning that the buyer only needs to save on sales-related taxes and costs, which usually represents 10% of the price of the house. the total price of the house.
Requirements to get a State guarantee for a mortgage for teenagers
To qualify for this youth mortgage benefit, there are a number of requirements that must be met. These include being under 35 at the time of purchaseor being a dependent minor, have an income of less than 37,800 Euro per person per yearand living in Spain with a valid DNI or NIE. In addition, the housing in question must not exceed the maximum price specified in each aid, andIt must be the first house purchased and used as a habitual residence.
It is important to note that in cases where two people purchase the home together, both parties must meet the conditions to access this assistance. If one of the parties does not meet the necessary conditions, they will not be able to benefit from the 20% ICO guarantee.
How to apply for mortgage assistance for youth from the government?
Frequently asked questions about the program mortgage assistance to youth and CHow to request approvalIt will be answered in detail on Tuesday, 9 May, when, among others, the measure is approved by the Council of Ministers.
This is an exciting time for young people in Spain. Introduction of it youth mortgage assistance It promises to open new doors for those who have hitherto found the prospect of home ownership unattainable.
Deadline to apply for mortgage assistance for youth from the government
Not announced yet When can this be officially requested? help, but the measure is expected to be approved by the Council of Ministers this Tuesday, May 9th. Once approved, applicants can go to any of them. Banking organizations cooperating with the ICO to request this approval.
It is estimated that around 30 bank institutions currently offer ICO loans and guarantees. Following the same dynamics as autonomous communities with similar assistance, future buyers are likely to request this guarantee directly from their banks if they cooperate with the ICO.
Related types household With this turnover,Approval of the measure must be waited for details to be learned. However, it is assumed that any type of housing, new or second-hand and under official or free protection, can be acquired, following similar assistance guidelines in other Autonomous Communities.
Do I have to repay the amount guaranteed by the Government for my mortgage?
Regarding the refund of the amount guaranteed by the government, it is important to remember that. This program is a support, not a grant.. that means buyers must return all money claimed on the mortgage, including 20% guaranteed by the Government.
What if I can’t pay the government-guaranteed mortgage?
Finally, in the event of non-payment of the mortgage, the responsibility rests with the guarantor, in which case the Government will be entitled to claim the debt plus statutory interest paid to the mortgage creditor in accordance with Article 1838 of the Civil Code. .
The announcement of this measure is an important step in the right direction to facilitate access to housing for young people in Spain. Undoubtedly, this new policy help for mortgage for young For many, it may be the key to opening the doors of home ownership. Not only that, it may also be the support they need to start building a more secure and stable future.