The Madrid’s community publishes today in the BOCM the order that regulates the program ‘My First living place‘, to help young people under 35 with the granting of up to 95% of the mortgage on their first home.
With this publication, the period opens, which will last until September 15, so that financial entities that meet the requirements can apply for membership.
The Regional government allocates an investment of 18 million euros, 50% more than the initially planned budget, to favor the emancipation of those young people from Madrid who, despite having financial solvency, do not have enough savings to obtain a mortgage. In this way, in collaboration with financial institutions, “it will offer a guarantee to those who do have sufficient financial resources to meet the remaining amounts of the amount of the home they are going to buy.”
Those interested in being beneficiaries of ‘My First Home’ may not exceed 35 years of age at the time of submitting the financing request to the financial institution, prove their legal residence in the Community of Madrid continuously and uninterruptedly during the two years immediately prior to the loan application date and be your first home purchase in the national territory.
It will be the banks, once they have adhered to the agreement with the Autonomous Administration, who will assess the applications of the individuals and will grant the mortgage loans for the acquisition of the flats for an amount greater than 80% and up to 95% of the value of the property, provided that it does not exceed 390,000 euros, taking its appraisal value or the purchase price as a reference.
REQUIREMENTS
Financial institutions must also meet a series of requirements to join the ‘My First Home’ programme, including a minimum investment grade credit rating granted by a rating agency of the Eurosystem’s credit evaluation system and certification from the Registry of Credit Institutions of the Bank of Spainwith branches of the financial institution in all municipalities of the Community of Madrid with a population of more than 50,000 residents.
The ‘My First Home’ initiative is included in the Strategy for the Protection of Maternity and Paternity and the Promotion of Fertility and Conciliation 2022/26 of the Community of Madrid. Endowed with 4,800 million, it is aimed at promoting and protecting maternity and paternity or family reconciliation.
Future mothers under 35 years of age will have access to different regional measures aimed at facilitating the purchase of a house, as is the case with this new program; also aid for the rental of public real estate, such as the Live Plan of the Autonomous Government that offers rental prices 40% below the marked price, or for the extension of a maximum of two years of the non-payment of rent insurance through of the Youth Rental Plan.