Where and when to apply for ICO mortgage guarantees
In response to rising housing challenges in Spain, the government has taken a major step to ease access to homes. The new measure aims to promote the purchase of a first home by offering a line of guarantees through the Official Credit Institute (ICO). This program is targeted especially at groups that face higher barriers to entering the property market, such as young people and families with dependents.
The initiative includes a 2.5 billion euro fund designed to provide guarantees covering up to 20 percent of the mortgage value, with a potential extension to 25 percent for properties rated energy class D or higher. These guarantees are intended to lower the cost of borrowing and unlock more affordable financing options for eligible buyers, as reported by government sources.
The program is specifically designed for applicants under 35 and for families with children, with eligibility criteria based on income and assets to ensure assistance reaches those in greatest need. This selective approach seeks to maximize social impact by promoting fairer access to housing and reducing inequalities in the housing market, according to official statements.
According to the government portal, the following requirements apply:
- The buyers must be adults who reside legally in Spain and can prove continuous residence for the two years prior to the loan application.
- Individual incomes must not exceed 37,800 euros gross per year (4.5 times the IPREM). If the property is purchased by two people, the income limit doubles.
- The program includes adjustments based on the number of dependent children and whether the family is single-parent. The limit increases by 0.3 IPREM per dependent child and, in the case of a single-parent family, the limit can rise by an additional 70 percent.
- The guaranteed amount has a maximum asset limit of 100,000 euros for the guarantor.
- Applicants who already own another dwelling are generally excluded, with some exceptions noted in official guidance.
- The guarantee remains within set limits as long as the home is the applicant’s habitual residence, except in the situations mentioned above that may require a change of residence.
Where and when to apply for ICO guarantees for mortgages
Mortgages that qualify for this guarantee line can be requested through December 31, 2025, with a possible two-year extension depending on demand and economic conditions.
Regarding where to apply for ICO mortgage guarantees, sources cited by news agencies indicate that specifics had not yet been finalized. Although the government approved the guarantees, the accompanying agreement with the ICO and banks was still pending, with an intention to finalize the final text by late February or early March, though exact timelines had not been confirmed.
The ICO guarantee line is expected to have a meaningful impact on the housing market by reducing entry barriers for groups traditionally facing financing obstacles. By lowering the entry hurdle, the government aims to stimulate construction activity and promote greater social stability through improved access to housing.