Families with incomes of up to R$9,600 per month will be able to take out up to R$30,000 in loans to renovate their homes, according to a decree from the Ministry of Cities published in an extra edition of the Official Gazette this Thursday. The minimum value will be R$5,000.
The housing improvement program is one of the government’s positive agenda on the eve of the election year. In parallel, this Friday, President Luiz Inácio Lula da Silva will announce the new housing credit model using savings resources. The change has the potential to release at least R$20 billion in loans immediately and could double the volume of resources for housing credit in two years, when it is fully in force.
In the reform program, as O Globo anticipated, the design foresees the division of beneficiaries by family income ranges and lower interest rates than those practiced in the market.
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In bracket 1, with a gross family income of up to R$3,200, the interest will be 1.17% per month. In range 2, from R$3,200.01 to R$9,600, it will be 1.95% per month. Furthermore, the Popular Housing Guarantee Fund (FGHab) will provide support for track 1 financing in the event of default. The loans will be made with resources from the Social Fund, estimated at R$30 billion.
Interested parties will only be able to take out one financing at a time, with a repayment period between 24 and 60 months, or 2 to 5 years. The installment amount will be limited to 25% of family income.
According to the ordinance, properties must be located in an urban area and have a residential or mixed purpose. The resources can be used to purchase construction materials, pay for labor, contract projects and provide technical guidance.
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“The credit line aims to promote the right to adequate housing for the low-income population, by granting financing to carry out housing improvement interventions in urban areas, to face socioeconomic challenges and the inadequacy of households in Brazil”, says the text.
