ICO (Loans from the State) guarantees for the purchase of first homes approved

The new ICO guarantees, approved by the Government, constitute a line of financing of 2,500 million euros aimed at the purchase of the first home for young people under 35 years of age and families with dependent minors.

This government initiative seeks to offer a concrete solution to a complex problem that requires specific instruments to address it, given that it has no single solution.

Objectives of the measure:

Facilitate access to a mortgage for more than 50,000 solvent people who have not been able to save enough to buy a home, thus enabling thousands of young people to become emancipated.

Alleviate the rental market in stressed areas, where the cost of renting is higher than the cost of buying, and address the reality in rural areas to contribute to the fixation of population.

This measure is one of the many instruments that the Government is implementing with the aim of guaranteeing that no citizen has to spend more than 30% of their salary on rent or mortgage payments.

Requirements and conditions for applying for the ICO guarantee:

Applicants for housing must be natural persons of legal age with legal residence in Spain, having to accredit this continuously and uninterruptedly for the two years prior to applying for the loan.

Individual income cannot exceed 37,800 euros gross per year (4.5 times the IPREM). In the case of acquisition by two people, the income limit is doubled.

This limit is increased by 0.3 times the IPREM (2,520 euros gross per year) for each dependent child, and by an additional 70% in the case of single-parent families.

The limit of the guaranteed party’s assets is up to 100,000 euros.

Those who already own another home are not eligible for this line of guarantees, except in specific cases such as inheritance, separation or divorce, or for reasons of disability.

The guarantee can be maintained within the established limits if the home is the beneficiary’s habitual residence, except in circumstances requiring a change of home.

Amount of the ICO guarantee:

The ICO will guarantee up to 20% of the amount of the credit, or up to 25% if the home has an energy rating of D or higher.

Terms:

The term of the guarantee granted by the Ministry of Housing and Urban Agenda will be a maximum of 10 years from the formalisation of the operation, regardless of the repayment of the loan.

During this period, the home must be the habitual residence of the guaranteed party, and the rent will be limited by circumstances such as marriage, separation, job transfer, among others.

The deadline for formalising loans under this line of guarantees will end on 31 December 2025, with the possibility of extension for a further two years according to the agreement.