Why the down payment is the main obstacle

The main obstacle to purchasing a home using mortgage lending Usually it is not a monthly payment, but a down payment. Typically, banks finance up to 80% of the property price, which obliges the buyer to have savings of the remaining 20% ​​plus funds for related costs. In 2026, the government of the Valencian Community decided to intervene at this key moment.

How the IVF Guarantee Program Works

The autonomous authorities have expanded the guarantee program of the Valencian Institute of Finance (IVF) so that young people and adults under the age of 45 can obtain mortgages for 100% of the cost of their home. This was announced by the head of government, Juanfran Pérez Llorca, who confirmed an increase in the autonomy guarantee from 15% to 20% of the cost of housing, which allows banks to finance the entire amount.

That is:

• the bank provides 100% of the value of the property;
• the government of the Autonomous Community guarantees up to 20%;
• the buyer does not need to make a down payment;
• the program is free for both the beneficiary and the cooperating bank.

Which properties are suitable and what is the price limit?

The program allows you to purchase both new and used houses, as well as houses put up for free sale or built as part of the state program of social housing and private construction. However, the property must be intended for permanent residence. In addition, the maximum eligible price has been increased to €311,000, expanding the range of properties that can be included in the program.

Conditions for obtaining the IVF guarantee

To receive an IVF guarantee for the purchase of a house in the provinces of Alicante, Valencia or Castellon, applicants must fulfill the following conditions:

1. At the time of application, you must be between 18 and 45 years of age inclusive. The age restriction does not apply if one of the buyers lived in a municipality affected by the DANA disaster on October 29, 2024.
2. It is necessary to demonstrate continuous and uninterrupted residence in the Valencian Community for the two years preceding the submission of the application.
3. You cannot be the owner of another property in Spain, unless the owner owns a share of less than 50%; or after the divorce he was not granted the right to use the family home; or there is a right of use for a third party.
4. Requires Spanish citizenship, citizenship of another EU country or permission to legal residence, if we are talking about citizens of third countries.
5. The applicant must have a financing offer issued by a financial institution that cooperates with the program.
6. It is necessary to have no debts to the Government of the Valencian Community, with the exception of deferred or suspended payments.

How to apply

The process of receiving this assistance does not start at the bank, but at IVF. First, the interested party receives a mortgage offer from a collaborating institution. Then an application is submitted along with documents on the IVF electronic website, where compliance with all requirements is checked. If the application is approved, a decision is issued to provide a guarantee, which is communicated to both the applicant and the selected bank.

Applications can be submitted after official publication in the Diari Oficial de la Generalitat Valenciana.

What is important to consider

Although the guarantee allows you to access 100% of the value of the property, it must be borne in mind that it does not cover associated costs (taxes, notary, registration), does not guarantee automatic provision of a loan (the bank must approve the transaction) and does not replace the financial viability of the buyer.

At a time when housing costs are rising and it is difficult to save for even a 20% down payment, the program removes a major barrier to access. For those who qualify, this could mean the difference between continuing to pay rent and purchasing a home.