Born in 2009, the housing program was created with the intention of helping Brazilians to buy their first property , leaving the rent and improving their living conditions.
Thus, since then, Minha Casa Minha Vida has undergone numerous modifications. Especially in relation to the values and the income ranges that can be included in the discounts. This has helped an even greater number of families.
Are you thinking of buying your first property? Keep reading this content and learn all about this federal government program.
What is the Minha Casa Minha Vida program?
Minha Casa Minha Vida was born after the federal government found, through IBGE surveys , that the country had a housing deficit of 7.9 million homes.
To remedy this issue, differentiated financing was launched . Thus, with easier conditions, such as installment payment and government subsidies, it became easier to buy a property.
Today, anyone who wants to participate in Minha Casa Minha Vida needs to follow a series of requirements. In addition, the value of the property must comply with the maximum ceiling stipulated for your region.
We will talk about these points below.
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What types of housing are contemplated?
The government program contemplates both urban and rural properties, as long as they are dedicated to housing. In other words, commercial properties are out of the program .
In the case of rural housing, there is a specific program within Minha Casa Minha Vida, called “National Rural Housing Program”. This was created to allow family farmers, traditional communities and rural workers to be able to buy decent housing in the countryside.
It serves both those who want to acquire a rural property, those who want to build or renovate the house they already own.
The PNHR is intended for farmers and family members of rural workers. These must have gross annual income of up to R $ 78 thousand. Families are divided and classified into 3 income groups.
- group 1: income of up to R $ 17 thousand / year with subsidy granted upon return of consideration corresponding to only 4% of the amount received and the payment only begins to be made after the delivery of the new house;
- group 2: income between R $ 17,0001.00 to R $ 33 thousand / year. The beneficiary has up to 12 months to build or renovate, a nominal interest rate of 5% per year and maximum amounts of financing up to R $ 30 thousand;
- group 3: income between R $ 33,001.00 and up to R $ 78 thousand / year. The family will be able to build the house whenever they want and the payment term is 7 to 10 years after the work is completed.
In addition, there are other beneficiaries of the program. Artisanal fishermen, extractivists, farmers, psicultores, maricultores, indigenous peoples, quilombola communities, settlers benefiting from PNRA and other traditional communities are in this group.
Those interested can look for the nearest Caixa or the rural union in the region.
Who can participate?
First, it is necessary to understand that for the program in urban areas, the requirements are a little different. The first point is that people who want to buy cannot have any other residential property in their name in the city in question.
In addition, you must be within the stipulated income brackets. Recalling that these values can be adjusted annually according to the guidelines of the Federal Government.
For 2019, the ranges, according to the Caixa Econômica website , are:
- range 1: families with monthly income of up to R $ 1,800.00. Financing is carried out in up to 120 months and monthly installments vary between R $ 80 to R $ 270;
- range 1.5: families with an income of up to R $ 2,600.00. Caixa's financing is carried out with interest of only 5% per year, with a maximum payment period of 30 years and subsidies of up to R $ 47.5 thousand;
- range 2: families with an income of up to R $ 4,000.00. The program subsidies can reach up to R $ 29 thousand;
- range 3: families with income of up to R $ 7 thousand, it is possible to obtain differentiated interest rates, but there is no government subsidy.
In tier 3, the benefits include families with an income of up to R $ 9 thousand, but these amounts depend on each bank. In addition to Caixa Econômica Federal, Banco do Brasil also offers financing lines for Minha Casa Minha Vida. In this case, what changes is the interest rate.
Therefore, while in the other ranges it varies between 5 to 5.5% per year, in range 3 it can reach 9% per year. It is important to note that the rate is still lower than the interest charged on financing outside the program.
How it works?
In addition to falling within the salary ranges, whoever wants to buy a property through the government program needs to keep an eye on the total value of the property. This is because there are maximum limits for this. Therefore, these vary according to the state and the city, following the real estate valuation of each location.
In Belo Horizonte, the new ceiling set in 2017 is R $ 215 thousand, but the maximum amount of the program is R $ 300 thousand (depending on the city where the property is located).
Families whose total income is below the limit of R $ 1,800.00 need to register with the city hall of their city. After all, in this case they are suitable for the drawing of popular houses.
For those who fit the above ranges, it will be necessary to pay attention to some questions. They include finding a property within the stipulated limit for your city. In addition, you must take the documentation to one of Caixa's authorized outlets.
The documentation includes: CPF, RG, proof of income from the last 6 months, declaration of income tax or exempt, Work Permit and marriage certificate, if applicable. Likewise, married couples must also present their spouse's personal documentation.
On the other hand, for the self-employed, self-employed professionals and microentrepreneurs (MEI) it is necessary to prove income through bank transfer or income tax return.
To be approved, the Bank will analyze a series if you have a clean name. If you do not have any other financing in your name and you are able to pay the installments (which cannot be more than 70% of your salary).
In addition, the applicant should not receive other housing benefits from the government; have another property in your name or be an employee, or married, with a Caixa Econômica Federal or Banco do Brasil server.
What are the guarantees and benefits?
The main benefit is the financing conditions offered, as interest rates are much lower than those offered by banks in case of mortgage loans outside the program.
In addition, depending on the number of dependents and working time with a formal contract, it is possible to guarantee excellent government subsidies, which reduce the total amount of financing.
Another point in favor is that you can use your FGTS to discount the value of the property. It can be used both to reduce the value of the installments and for the down payment.
In fact, speaking of entry, it is important that you plan for it. The best way to plan is using the Caixa Econômica Simulator .
There, you inform the total value of the property, your income and other data and have a real idea of how much you will have to pay for the entry, the amount of the installments (according to the SAC or PRICE table) and maximum financing time.
Today, many construction companies facilitate the entry fee, especially in the case of apartments and properties in the plant, splitting this amount while the property is still being built.
In addition, another important point, in the case of real estate in the plant , is that, while the item is under construction, you will have to pay the “construction fee” that refers to the financing interest. The value of the financing installments will only begin to be paid when the property is delivered.
What to consider when signing the contract?
When signing the contract, attention is needed. Generally, banks request that program beneficiaries become customers of the institution and purchase insurance and other programs from the institution. In addition, you will need to take out home insurance.
Stay tuned for issues regarding delay. If you delay some installments, the bank can repossess the property - and this information is stipulated in the contract.
In addition, it is important to remember that there is a monthly correction of the outstanding balance. Such readjustment occurs by the same index of monetary correction of the accounts linked to FGTS. So, be aware of this information before signing the contract.
For more information, the tip is to access the Caixa Econômica Federal document with valuable points that need to be analyzed in advance. And, remember to include documentation costs in your budget (registration, property registration, ITBI and others).
As you saw, the Minha Casa Minha Vida program is a great way to buy your first property, with reduced financing interest and government subsidies.
However, it is very important to find the right property. This must be within the maximum value of the program and that offers amenities and benefits to your family.