Buy a first home and pay your mortgage It is not easy for many young people. For this reason, the Official Credit Institute (ICO) has launched a guarantee program to facilitate access to mortgages for young people under 35 years of age and families with dependent minors. Some banks have joined this initiative promoted by the Government, helping their clients finance their first home. ABANCA is one of the most recognized entities on the list.
But how do these ICO guarantees work? They are public guarantees that make it easier for young people and families to access a mortgage in Spain without the need to have prior savings. These guarantees can cover up to 25% of the value of the property and finance up to 100% of the price of your first home.
To help its clients receive this guarantee, ABANCA has launched the Young Mortgage. It is a solution adapted to the economic reality of young people, which allows them to acquire their first home with access to different aids and guarantees depending on the region in which they reside.
This innovative solution makes it easier for young people to buy their first home without having to provide initial savings, since the product offers financing to cover up to 100% of the purchase amount.
The deadlines, furthermore, are very broad in the case of ABANCAand can last up to 40 years if a series of conditions are met. Another advantage is that the bank itself is responsible for covering the notary, registration and mortgage management expenses, which significantly reduces the initial outlay.
Young people who apply for ICO guarantees must meet the following requirements:
- Age: They will have to be young people of legal age and under 35 years of age and/or families with dependent minors who are buying their first habitual residence in Spain.
- Residence: Applicants must have legal residence in Spain for the two years prior to applying for the loan.
- Income: Applicants’ income must not exceed 4.5 times the Iprem, although the limit increases for each dependent minor.
- Heritage: The applicants’ assets cannot exceed €100,000.
- Property: The purchasers cannot be owners of another home.
Regional programs My First Home
ABANCA collaborates with the “My First Home” programs, promoted by the autonomous communities of Galicia, Madrid, Castilla y León, Valencian Community and Extremadura. The My First Home programs are the public tool that facilitates access to mortgage financing for young people looking for their first home. The characteristics and requirements of the program vary depending on the autonomous community.
First home in Galicia
Thanks to an agreement with the Xunta, the young Galicians under 36 years of age They can access guarantees that cover up to 20% of the purchase price of the first home they own, allowing them to finance 100% of the purchase value or its appraisal, in the event that it is lower. Maximum housing prices range between €130,000 and €240,000, depending on the location within Galicia.
First home in Madrid
In this community, the program allows young people to request financing of up to 100% of the value of the home. Applicants must be under 40 years old or single-parent and large familieswithout age limit, and not have other property in your name. The maximum housing prices cannot exceed €390,000. The acquired home must become your habitual residence, a condition that reinforces the objective of facilitating access to a stable home for young people from Madrid.
First home in Castilla y León
In collaboration with the Government of Castilla y León, ABANCA offers financing of up to 97.5% for young people whose income limit is €42,000 per year and whose property does not exceed €240,000. The initiative supports those seeking to establish themselves in this region, eliminating common economic obstacles for first-home buyers.
First home in the Valencian Community
In the Valencian Community, the age limit extended to 45 yearswith a maximum financing of 95% for properties up to €277,000.
First home in Extremadura
In Extremadura, the age limit is 36 years, and The mortgage covers up to 95% of the home if its price does not exceed €210,000.
How to access financing for a young mortgage
The process to access the First Home program in each autonomous community is relatively simple. ABANCA has simplified the application process for the Young Mortgage adapting it to the requirements of each autonomous community.
Although it may vary by region, the required documentation includes proof of income, a declaration of residence in that community, and a commitment to regular use of the property. Additionally, a favorable financing report is requested from ABANCA, which ensures that applicants have the necessary financial support.
ABANCA offers the possibility of carry out a prior consultation to analyze the viability of the request and get support in every phase of the process. This is a great help for young buyers, as it speeds up the procedures.
To find out the specific details of the offer, as well as the requirements and procedures in each region, you can visit the official ABANCA website at this link.