100% Government Agency mortgage for home purchase
100% mortgages are rather rare products in the financing market, since they provide for the granting of a loan that covers the total cost of buying the house. Public employees and pensioners, however, have the possibility of obtaining 100% mortgages on favorable terms. We are talking about the 100 percent Government Agency mortgage.
Despite the elimination of the Government Agency, in fact, those who refer to the public sector can still benefit from the subsidized credit lines granted by the institution. Among these, the Government Agency mortgage loan stands out, a loan granted by the social security institution for the purchase or construction of the first house, or for other purposes relating to the first house.
Following the abolition of Government Agency, subsidized mortgages for public employees and pensioners passed on to Social Institute. In order to administer and grant these loans, the Institute has created a special office, Public Employee Management.
Government Agency 2018 loan amounts and conditions
The amount of the Government Agency 100 percent loan that can be financed varies according to the reason why the application is made. Loans for the purchase, the construction of the first house allow to obtain up to 300 thousand USD.
Among the purposes envisaged for the 100 percent Government Agency loan we also find the extension or completion on land owned, always of a home that is destined to become the residence of the borrower and his family.
For the purposes of access to credit it is necessary that the property being financed cannot be considered a luxury home pursuant to ministerial decree no. 1072 of 2 August 1969. As already mentioned, the house must constitute the residence of the borrower. In the absence of these requirements, funding is not granted.
Government Agency mortgages can also be requested for home renovation or maintenance. In this case the maximum amount that can be financed is 150 thousand USD. Among the purposes contemplated by the Government Agency Mortgage Regulations we also mention the purchase or construction of a parking space or garage.
Analyzing the 100% Government Agency mortgage offer, it is necessary to remember that the disbursable sum can never exceed the value attributed to the property during the appraisal or the purchase price that was declared in the deed of sale.
The repayment takes place in 10, 15, 20, 25 or 30 years. The rate can be fixed or variable and the installments are every six months. Those who opt for a variable interest mortgage have a Tan equal to the value of the 6-month installment, increased by 200 basis points.
For fixed rate mortgages, on the other hand, the Tan is defined on the basis of the loan to value, that is, on the basis of the ratio between the value of the mortgage and that of the property.
Government Agency mortgage subrogate
Recall that those who have a mortgage loan in progress for the purchase of the first home can substitute it at Government Agency. Opportunity which, however, provides for the fulfillment of some requirements. First of all, the fact of being public employees or pensioners registered in the Unitary Management of credit and social benefits (Social Institute credit fund).
In order for the subrogation to be granted, it is also necessary that the current loan has been subscribed for one of the purposes envisaged by Social Institute for the granting of ex Government Agency loans. Lastly, we remind you that by subrogating the current mortgage, the public employee or pensioner will be able to benefit from the preferential conditions applied to Government Agency mortgages.
For more information on the advantages of the 100 percent Government Agency mortgage, please consult the official Social Institute portal.