The new ICO line of bank guarantees for under-35s and families with dependents to purchase their first home in Spain is designed to facilitate access to housing for young people and families with dependent minors. Below are the key details and who can benefit from this guarantee line:

Details of the ICO Bank Guarantee Line

Objective:

• Facilitate access to financing for the purchase of the first home.
• Support young people under 35 and families with dependents looking to acquire their first property.

Beneficiaries:

• Young people under 35: Individuals who are not older than 35 at the time of the application.
• Families with dependents: Regardless of the parents' age, these families can also benefit from the guarantee line to purchase their first home.

Conditions:

• First home: The financing is exclusively intended for the purchase of the first habitual residence.
• Maximum guarantee amount: Generally, the guarantee covers up to 20% of the home's price, complementing the mortgage loan which can reach up to 80% of the property's value.
• Term: The term of the guarantee and specific conditions may vary depending on the financial institution managing the mortgage loan but generally align with typical mortgage loan terms.

Functioning:

• Apply for the guarantee: Interested parties must approach a collaborating financial institution offering this ICO guarantee line.
• Application evaluation: The financial institution will assess the applicant's solvency and the viability of the operation, considering the ICO guarantee as additional security.
• Guarantee approval: If the application is approved, the ICO guarantees a percentage of the loan, facilitating the mortgage acquisition.

Beneficiaries

Young people under 35:

• They can be single, married, or cohabiting partners.
• They must be interested in acquiring their first habitual residence.
• The aim is to foster independence and access to housing among young people, providing more favorable financing conditions.

Families with dependents:

• Includes both single-parent and two-parent families.
• There are no age restrictions for parents in this beneficiary group.
• The initiative also supports families with dependents, facilitating access to housing and improving their quality of life.

Advantages

• Facilitating access to housing: By providing a bank guarantee, applicants can obtain mortgage loans more easily and under better conditions.
• Reducing financial risk: The ICO guarantee reduces the risk for financial institutions, which can translate into a greater willingness to grant mortgages to young people and families.
• Promoting youth independence: Helps under-35s to become independent and access their own housing.

This initiative is part of the Spanish government's efforts to support groups with greater difficulties in accessing the real estate market, especially in a context of increasing difficulty in acquiring a home due to high prices and financing conditions.