ICO guarantees for the purchase of your first home

Corp | 05 July, 2024

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If you are looking to acquire your first home in Spain, ICO guarantees (Official Credit Institute) can be an ideal financial solution for you. These guarantees are designed to facilitate access to a mortgage, especially for those who do not have sufficient initial capital.

What are ICO guarantees?

ICO guarantees are guarantees that the Official Credit Institute offers to banks so that they can grant mortgage loans to people who want to buy their first home. These guarantees are intended to cover up to 20% of the value of the property, allowing buyers to access a mortgage with a lower initial outlay.

Benefits of ICO guarantees

  1. Access to financing: ICO guarantees allow buyers to obtain a mortgage without having to have large prior savings. This is especially helpful for young people and families with middle or low incomes.
  2. Favorable conditions: By having the support of the ICO, banks can offer more advantageous conditions in terms of interest and repayment terms.
  3. Security and trust: The ICO backing provides greater security for both the buyer and the bank, reducing the risk of non-payment.

Requirements to request an ICO guarantee

In order to benefit from an ICO guarantee, it is necessary to meet certain requirements:

  • Be a resident in Spain.
  • Not own another home at the time of application.
  • Demonstrate the ability to pay the mortgage loan.
  • The value of the property must not exceed an established limit, which may vary depending on the location and the real estate market.

How to request an ICO guarantee

The process of applying for an ICO guarantee involves several steps:

  1. Home Search: Find the home you want to buy and make sure it meets the program requirements.
  2. Mortgage application: Go to a banking entity that collaborates with the ICO and submit your mortgage application.
  3. Bank evaluation: The bank will evaluate your financial situation and, if you meet the requirements, will request a guarantee from the ICO.
  4. Granting the guarantee: If the ICO approves the application, it will issue the guarantee and the bank will be able to grant you the mortgage with the agreed conditions.

Conclusion

ICO guarantees represent an excellent opportunity for those looking to purchase their first home in Spain. By reducing the barrier of initial savings and offering more favorable conditions, these guarantees facilitate access to real estate property for a greater number of people. If you are interested in this program, we recommend that you contact a collaborating banking entity and begin the application process to make the dream of having your own home come true.

➡️For more information and specific details about ICO guarantees, visit the official ICO page or contact us and we will help you with all the necessary procedures. comercial@grupocorp.es


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