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News in ICO Guarantees For Housing: Limits on The Purchase Price and Participating Entities

News in ICO Guarantees For Housing Limits on The Purchase Price and Participating Entities - News in ICO Guarantees For Housing: Limits on The Purchase Price and Participating Entities

Last February, the Government approved a line of ICO guarantees for housing worth 2.5 billion euros. The goal is to facilitate access to housing for people who have difficulties in doing so. In this way, the guarantees will cover 20% of the value of the properties for which banks do not offer financing. Three months later, the initiative is already beginning to materialize.

Advances in ICO guarantees for homes

The decisive step for these guarantees to come into being was signing the agreements with the banks that will provide mortgages at 100%. That step has already been taken care of. Banco de Santander has just joined.

It is the largest bank that has joined the initiative so far, but not the only one. Ibercaja, EVO Banco, Unión de Créditos Inmobiliarios, Arquia and Caja de Ontinyent have also done so. The forecast is that more banks will join soon.

Although some technical issues will need a solution, the banks could begin to offer these mortgages as early as summer. What they can do now is evaluate applications. In effect, to be a beneficiary of this aid, it is essential to meet some requirements:

Be of legal age and have loyal residence in Spain for two years before the application.

Individual income cannot exceed €37,800 per year. If there are two applicants, that amount gets duplicated. The limit is raised in the case of single-parent families and for each child they have.

• The maximum guaranteed assets will be 100,000 euros.

• With exceptions (separation, inaccessibility due to disability, etc.), those who are already owners cannot access ICO guarantees for homes.

On the other hand, this line of guarantees is primarily for people under 35 and families with exceptional difficulties in achieving financing.

Conditions and news in ICO guarantees for homes

In addition to these conditions, those who request ICO guarantees for homes must consider some other aspects:

• The deadline to formalize the loans that qualify for them ends on December 31, 2025, although there may be extensions.

The term of this guarantee is a maximum of 10 years from the signing of the mortgage.

• The home must be the habitual residence.

• The guarantee may cover up to 25% of the price of the home if it is rated D or higher.

Regarding new developments, there is a limit on the housing price. This limit varies according to autonomous communities:

• In the Community of Madrid, the price of housing may not exceed 325,000 euros.

• In Catalonia, the Basque Country and Navarra, the limit is 300,000 euros.

• In Aragon and the Balearic Islands, the limit is 275,000 euros.

Extremadura is the community with the lowest limit, 200,000 euros, followed by Andalusia, about 225,000 euros.

• In the rest of the communities, the limit is 250,000 euros.

Forecasts indicate that this line of credit can promote the purchase of 50,000 homes in the coming years. If you are to buy your first home and you meet the requirements, don't wait any longer and start your search at

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