Residents in the Valencian Community between 18 and 45 years old can access from 2024 to a guarantee for 95% of the purchase value to access their first home.
The mortgage guarantee launched by the Generalitat Valenciana seeks to facilitate the purchase of a first home for all residents in the Valencian Community with at least 2 years of fixed residence prior to making the application.
The property must be destined for the applicant’s habitual residence and may not exceed a purchase value of 277,000 euros. They may be either new or second hand, or public protection, private development.
To access these conditions, applicants can contact a list of collaborating banks, which will assess their solvency and capacity to assume the loan before applying for the guarantee.
Before applying for the loan, interested parties must have 5% of the purchase price, plus 10% for expenses and taxes.
If the claim is successful before the bank, the young people will then be able to request the guarantee before the Valencian Institute of Finance (IVF) to formalize the mortgage loan and to be able to close the sale.
The mortgage guarantee can be requested through the following banks that have signed a collaboration agreement with the Generalitat Valenciana:
-
- Caixabank.
-
- Banco Santander
-
- ABANCA.
-
- Caixa Popular.
-
- Caixa Ontinyent.
-
- Cajamar.
-
- Caja Rural de L’Alcúdia.
-
- Caixa Rural Benicarló.
-
- Caixa Rural d’Algemesí.
-
- Caja Rural Ntra. Sra. de la Esperanza de Onda.
-
- Ruralnostra.
-
- Caja Rural La Vall ‘San Isidro’.
-
- Caja Rural de Albal.
-
- Caja Rural San José de Alcora.
-
- Caja Rural Central.
In practice, the bank will finance 80% and of the remaining 20%, 15% will be assumed by IVF as a guarantee.
This IVF guarantee program has an initial endowment of 20 million euros, which would be equivalent to guaranteeing some 1,000 homes in this first phase of the program, without taking into account possible extensions.
All terms and conditions can be found in the publication of June 26, 2024 of the Diario Oficial de la Generalitat Valenciana (Official Gazette of the Generalitat Valenciana).
These guarantees are independent from those presented by the Official Credit Institute (ICO), aimed at people under 35 years of age and with a maximum purchase price of between 200,000 and 300,000 euros, depending on the Autonomous Community.