The Council of Ministers has approved a guarantee program by the Official Credit Institute (ICO) worth 2.5 billion euros in order to facilitate home purchases for young people and families with dependents. This measure aims to assist those groups who, despite having financial solvency, do not have previous savings to cover the down payment for a house.
Through this program, the ICO will guarantee 20% of the property’s price, corresponding to the down payment that banks usually require from mortgage loan applicants. The government intends for young people and families to access a loan that covers 100% of the property’s value.
In addition, it has been established that buyers must have savings equivalent to 10% of the transaction to cover the associated expenses of buying a home.
The Minister of Housing and Urban Agenda, Isabel Rodríguez, highlighted that this initiative turns the State into a guarantor for young people and families with children who wish to purchase their first home. According to the minister, this measure will contribute to solving the problem of access to housing in Spain and ensure that no Spaniard has to allocate more than 30% of their income to this purpose.
These guarantees are aimed at young people up to 35 years old and families with dependents, regardless of age, whose individual incomes do not exceed 37,800 euros gross per year. In the case of a home being acquired by two people, the income limit will be doubled. Furthermore, improvements have been established based on the number of children and whether the family is single-parent.
Once this guarantee program is approved, the Ministry of Housing and the ICO will sign an agreement to implement and manage it, which financial institutions operating with the ICO can join. Beneficiaries will be able to request the guarantee through these institutions. The deadline to formalize mortgages under this guarantee program will end on December 31, 2025, with the possibility of a two-year extension.
With this measure, the government aims to alleviate the access to housing, both in the rental market and in rural areas, by promoting self-construction of homes and encouraging population settlement in these environments.