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The Government approves guarantee line for home purchases

The Government approves guarantee line for home purchases

The Government has approved a guarantee line of 2.5 billion euros through the Official Credit Institute (ICO) to facilitate access to home purchases for young people and families with dependents. The measure aims to cover 20% of the down payment for the purchase of a home for these individuals.

According to Pedro Sánchez, the President of the Government, this initiative is aimed at individuals under 35 years old with annual incomes below 37,500 euros and families with dependents. The objective is to provide partial coverage of mortgage loans and thus facilitate the acquisition of a home.

The approval of this guarantee line, which has been known since May 2023, demonstrates the Government’s commitment to housing access for the youngest sectors of the population. Through this measure, it is expected to benefit around 50,000 people.

The Minister of Housing and Urban Agenda, Isabel Rodríguez, has emphasized that this measure seeks to “alleviate” the lack of previous resources to access a home. In many parts of the country, the cost of rent exceeds that of a mortgage, making it difficult to access homeownership. With this guarantee line, the aim is to cover the necessary down payment and facilitate the mortgage process.

In addition to this guarantee line, the Government plans to launch a loan program for the promotion of affordable housing through the ICO. This initiative, which will have an investment of 4 billion euros, will allow the construction of over 40,000 public and private affordable rental homes.

In summary, the Government has approved a guarantee line for home purchases aimed at young people and families with dependents. This measure seeks to facilitate access to homeownership by covering 20% of the down payment for the purchase of a home. Additionally, a loan program for the promotion of affordable housing is expected to be launched. These initiatives demonstrate the Government’s commitment to solving the issue of housing access in the country.

FREQUENTLY ASKED QUESTIONS:

1. What does the guarantee line approved by the Government consist of?
The guarantee line approved by the Government consists of the availability of 2.5 billion euros through the Official Credit Institute (ICO). These guarantees aim to facilitate access to home purchases for young people and families with dependents by covering 20% of the down payment.

2. Who can benefit from this measure?
According to the President of the Government, Pedro Sánchez, this initiative is aimed at individuals under 35 years old with annual incomes below 37,500 euros and families with dependents. The objective is to provide partial coverage of mortgage loans to facilitate the acquisition of a home.

3. How many people are expected to benefit from this measure?
It is expected to benefit around 50,000 people through this guarantee line.

4. What is the purpose of the guarantee line?
The purpose of the guarantee line is to “alleviate” the lack of previous resources to access a home. In many parts of the country, the cost of rent exceeds that of a mortgage, making it difficult to access homeownership. With this measure, the aim is to cover the necessary down payment and facilitate the mortgage process.

5. Are there other initiatives related to housing access?
In addition to this guarantee line, the Government plans to launch a loan program for the promotion of affordable housing through the ICO. This initiative will have an investment of 4 billion euros and will allow the construction of over 40,000 public and private affordable rental homes.

DEFINITIONS:

– Official Credit Institute (ICO): It is a Spanish public entity that aims to facilitate access to credit for companies and individuals, promoting economic and social development.

RELATED LINKS:

– ICO
– Ministry of Transport, Mobility, and Urban Agenda