The government of the Valencian Community continues to implement a guarantee programme that allows certain categories of buyers to obtain financing of up to 100% of the base value of their first primary residence.<\/p>\n
The part of the mortgage loan<\/a> exceeding 80% and reaching up to 100% is covered by a guarantee from the Valencian Institute of Finance (IVF), in order to facilitate access to residential property for those who are solvent but have not been able to accumulate sufficient savings.<\/p>\n Buying a home is becoming an increasingly difficult task for many buyers.<\/p>\n Rising prices increase the amount required and force buyers to have savings even before applying for a mortgage loan.<\/p>\n The problem is not limited only to the payment of monthly instalments.<\/p>\n The need for prior savings is one of the main obstacles, especially taking into account the taxes and other expenses<\/a> related to the purchase and sale transaction.<\/p>\n The IVF guarantee programme was designed precisely to remove this obstacle.<\/p>\n This initiative makes it easier for adults buying their first primary residence to obtain a mortgage loan and has a budget of 60 million euros.<\/p>\n This mechanism does not consist of the Valencian Community government granting the loan directly, but rather of providing a guarantee to the bank.<\/p>\n IVF guarantees the part of the loan exceeding 80% and reaching up to 100%, allowing the buyer to obtain a higher level of financing than usual.<\/p>\n The guidelines state that the reference value is the lower of two amounts: the purchase price or the appraised value, including annexes such as a garage or storage room.<\/p>\n The maximum value of the property to be purchased is 311,000 euros.<\/p>\n Both new and resale properties are allowed \u2013 whether on the free market or under the private development public housing scheme.<\/p>\n Although the guarantee allows buyers to obtain 100% financing, it does not cover taxes or expenses related to the purchase, sale or formalisation of the transaction.<\/p>\n VAT, property transfer tax (ITP), stamp duty (AJD) and other expenses must be paid in full by the buyer.<\/p>\n To take part in the programme, applicants must also prove two years of continuous residence in the Valencian Community.<\/p>\n The property must be located in this autonomous community and used as a permanent and primary residence throughout the entire period in which the guarantee remains in force.<\/p>\n The application is submitted exclusively electronically<\/a> through the IVF portal and requires personal documents, information about the property and a bank financing offer.<\/p>\nWhy the programme has become relevant<\/h2>\n
How the IVF guarantee works<\/h2>\n
Which property value is taken into account<\/h2>\n
Main eligibility conditions<\/h2>\n