More and more Brazilians have found ways to fulfill their dream of owning a home in bahria hills islamabad and get out of rent, thanks to the benefits that Minha Casa Minha Vida offers.
Faced with the varied economic classes, we are faced with families that have very low income, which makes it difficult to buy an apartment with no entrance and finally have a property.
To help those who need it most, the Minha Casa Minha Vida program allows the purchase of real estate without down payment through a loan, and that is what our article will cover.
Let’s check it out?
See in this post:
- Understand How Real Estate Financing Works
- Buying An Apartment With No Entrance: Is It Possible?
- Is It Worth It To Buy An Apartment With No Entry?
- Prestes Construtora: By People, For People
Understand how real estate financing works
The mortgage is a feature offered by some financial institution that makes possible the purchase of a property in installments. The amount and its installments vary according to each bank.
This feature is an excellent alternative for those who do not have the budget available to pay off a property in a few installments, but want to get out of rent quickly and realize their dream of owning a home.
The financing plan is drawn up by the banks according to the buyer’s profile. From the profile analysis, contract conditions, minimum value, interest, fees, terms, etc. are adjusted.
To get a mortgage, the first step is to apply to the bank upon presentation of personal documents (do not forget those that prove the monthly income, such as income tax declaration).
Afterwards, the bank analyzes the documents and the status of the applicant in Serasa and, if there are no pending issues, the application is approved.
At that time, the property to be financed undergoes an evaluation by the institution to confirm the value before signing the contract (the institutions offer the simulation of installments and the final price on their websites).
Most of the time, at the beginning of the financing, an amount as down payment that is worth, on average, 30% of the total value of the property is required.
Our advice is to carry out financial planning so that mortgage installments and interest rates are within budget at the end of each month. That way, you won’t be suffocated!
In addition to this modality, another option is to buy the apartment with no entry fee. However, this is only possible if done through the Minha Casa Minha Vida program, which we will cover in the next topic.
Minha Casa Minha Vida Program
Minha Casa Minha Vida is a program of the federal government and Caixa Econômica that aims to offer more affordable conditions for low-income families to have their own property in urban and rural areas.
Thus, the program has a partnership between the federation, states, municipalities and NGOs so that numerous advantages are guaranteed, even buying an apartment with no entrance fee.
Through the program, families are able to finance the property in up to 360 months, or 30 years, which means that the installments can be very low.
Another positive point is the possibility of using the FGTS (as a down payment, in the payment of installments or as a reduction in the debt balance) and the government housing subsidy, improving payment conditions.
Check out our article for more information on how Minha Casa Minha Vida works!
Who can participate in Minha Casa Minha Vida?
In general, the program is divided into four family income groups:
- 1: Income Up To R$1,800;
- 1.5: Income Up To R$ 2,600;
- 2: Income Up To R$4,000; And
- 3: Income Up To R$ 9,000.
Each range offers benefits according to the needs of the family in question, and if the family income exceeds R$ 9,000, it is not possible to join the program.
These ranges have interest rates and entry values suitable for each one, making it easier to buy a property without going into debt.
Other requirements to participate in the program are:
- Not Being A Beneficiary Of Municipal Or Federation Housing Programs;
- Being Over 18 Or Emancipated;
- Not Having Debts With The Government And Not Being Registered In The National Borrowers Registry;
- Living Or Working In The Municipality For Three Years Or More; And
- Not Having Their Own Property.
Buying an apartment with no entrance: is it possible?
For the mortgage loan application to be approved, financial institutions demand that the buyer pay a portion of the property.
This payment is known as “down payment”, which is worth approximately 20% to 30% of the amount to be invested in the property.
- For Example: If The Residence Costs R$200,000, The Buyer Must Pay At Least R$40,000 Down Payment (In This Case, 20% Of The Property’s Value).
However, many families do not have this money available and find it difficult to hire a mortgage.
However, depending on the family’s financial conditions, it is possible to buy an apartment without a down payment, under the condition that it fits into range 1 of Minha Casa Minha Vida.
Now, is it worth it to buy an apartment with no entrance? That’s what we’ll see next.
Is it worth it to buy an apartment with no entrance?
Track 1 of Minha Casa Minha Vida offers several benefits to its customers, such as payment of 90% of the property. The remainder must be paid in 120 installments, these installments, in some cases, being free of interest.
Given so many benefits that the program offers, for many people it is cheaper to pay the costs of Minha Casa Minha Vida than to maintain the rent of a property that is yours for a limited time.
The use of the FGTS, the possibility of joining the income of each member of the family (family income), having subsidies provided by the government, discounting the value of the installments and exemption from entry are favorable situations for those who are part of the MCMV range 1.
Thus, the person who has the opportunity to buy an apartment with no down payment and leave the rent, should carry out a financial planning and take the time to purchase their own home, as this investment is very worthwhile.
However, if even with these advantages the family cannot join the program, it must pay attention to non-accredited proposals, as financial institutions do not usually accept this type of agreement.
So, try to find out about the reputation and credibility of the entity that is intermediating the purchase of the financed apartment.
Learn how to finance an apartment in seven steps
How to buy an apartment with no entry through MCMV?
In order to be able to buy an apartment without entry through the Minha Casa Minha Vida Program, the applicant must meet the basic prerequisites established by the government. Are they:
be over 18 years old
One of the most important prerequisites for purchasing a no-entry apartment through the MCMV is that the applicant must be 18 years of age or older.
However, there are cases of underage applicants taking part in the program when they are legally emancipated by their parents.
Not owning a property beyond what is requested
To buy an apartment with no entry, the applicant cannot have another property in his name, let alone be the owner, transferee or holder of another mortgage of any residence anywhere in Brazil.
Use the property for housing
This is one of the most important points for those who want to join the program: the unit that will be acquired through the MCMV must be solely for the applicant’s housing purposes , that is, the property cannot be used for investment (for example, for rent) .
Also, when property is purchased using government grants, you need to be aware that it cannot be sold until the loan is paid off in full.
This happens to prevent people from using the benefit to have access to a cheaper price and, later, profit from the sale.
Not having been benefited by other programs
It is not possible to buy an apartment without a ticket if the applicant has benefited from other programs in the same segment of the MCMV.
In other words, the beneficiaries cannot have received any benefits from financial resources allocated to housing (municipal, federal, state, Residential Lease Fund or Social Development Fund).
The reason for this is to try to help the greatest number of families that really need the benefit and that the resources are used in a fair way for all.
Living or working in the city of the property
Although many people don’t know, to buy a homeless apartment using MCMV grants, the applicant must live or work in the city whose property is located for at least three years.