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ICO Guarantee for Mortgages: Who Can Access It and What Conditions Are Required

ICO Guarantee for Mortgages Who Can Access It and What Conditions Are Required - ICO Guarantee for Mortgages: Who Can Access It and What Conditions Are Required

Access to housing is one of the biggest concerns of the moment, especially for the youngest, who see the moment of emancipation delayed or have to venture into a rental market with high prices. In this scenario, the ICO guarantee for mortgages aspires to help thousands of people achieve the dream of buying their first home.

What is the ICO guarantee for mortgages?

It is an exceptional measure approved by the Government, a line of guarantees of 2,500 million euros from the Official Credit Institute (ICO). The objective is to facilitate access to housing for young people under 35 years of age and families with dependent minors. They are the ones who have the greatest difficulty in obtaining the necessary savings to face the first expenses associated with purchasing a home.

In general terms, the ICO will guarantee up to a maximum of 20% of the price of the home. That is precisely the percentage that typical mortgages do not usually cover. It may reach 25% when the property has an energy rating of D or higher.

Requirements to access the ICO guarantee for mortgages

The granting of the ICO guarantee for mortgages is subject to compliance with some requirements:

• Applicants must be natural persons of legal age with continuous and uninterrupted legal residence in Spain for the two years before the loan application.
• The individual income limit is €37,800 gross per year. If there are two buyers, that amount will be double.
If you have dependent minors, the limit is raised by 0.3% for each. If they are single-parent families, it can rise by up to 70%.
• The limit of guaranteed assets may not exceed €100,000.

In addition to this, there are two additional and fundamental conditions:

There is a limit for the guaranteed assets: €100,000.
Those who already own a home cannot benefit from ICO guarantees for mortgages, except in two circumstances:
◦ The right of ownership falls only on a part of the home obtained by inheritance.
◦ The applicant cannot access the home due to separation or divorce, inability to access it due to disability or causes beyond his control.

Deadlines for ICO guarantees for mortgages

When it comes to deadlines, there are three key aspects:

• The deadline to formalize a mortgage that benefits from the ICO guarantee ends on December 31, 2025. In this sense, it is essential to remember that not all financial entities may adhere to this plan.
The guarantee will last a maximum of 10 years from the formalization of the operation. During this period, the home must be a habitual residence, except if circumstances of force majeure occur.

With the possibility of requesting the ICO guarantee for mortgages, the home of your dreams is now more within reach than ever. Spainhouses.net helps you find it. Go to the website, enter the features you want for your new home, and in one click, you will see a wide range of homes for sale that adapt to your needs.

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