Young people are strongly interested in the “My Home” program, which concerns the granting of low-interest or interest-free housing loans to young people and young couples, aged between 25 and 39 years, for the purchase of a first home.

This, after all, is evidenced by the number of applications, the submission of which began on Monday, April 3, 2023. According to information, in less than a month and, specifically, until Thursday, April 20, 2023, the applications reached 18,895 . Of these, 996 have been pre-approved by the banks, with an average loan amount of 111,000 euros.

The total budget of the program is 500 million euros, with provision for doubling in case of exhaustion of available resources.

Beneficiaries of the program are individuals, aged between 25 and 39 years, on the date of submission of the loan application or spouses or persons linked by a cohabitation agreement, as long as one of the two is aged between 25 and 39 years, on the date submitting the application for the granting of a loan, who do not have another property suitable for their residence and satisfy the income criteria that have been set.

It is recalled that the annual income must be at least 10,000 euros, while the maximum is that which applies to the payment of the heating allowance (for 2023 the following applies: 16,000 euros for a single person, 24,000 euros for a couple, plus 3,000 euros for each child and 27,000 euros for single-parent families, plus 3,000 euros for each child beyond the first).

The main benefit for young people who will join the “My Home” program is that they secure a lower installment for the repayment of the loan, as 75% of the amount is granted interest-free by the Public Employment Service (DYPA) and the bank interest rate is applied to the balance 25% of the amount. It is noteworthy that, for those with three children, many children and for those who acquire this status during repayment, the loans are granted interest-free, with 100% subsidy of the interest rate by DYPA. Thus, the loan interest rate is set at a quarter of the corresponding interest rate normally charged by banks or is zero for three and many children.

The amount of the loan cannot exceed 150,000 euros and the duration 30 years, while it can cover up to 90% of the value of the property.

According to the Ministry of Labor and Social Affairs, the program supports lending for properties that will be used as a main residence, have a commercial value of up to 200,000 euros, as reflected in the purchase contract, have a size of up to 150 square meters, are at least 15 years old years at the time of purchase, as shown by the construction permit and located within a residential area.

Additional advantages of the loans that will be disbursed under the program are that:

– The loan is exempt from the contribution of Law 128/1975.

– The program covers the envelope costs for each potential borrower.

– It is not allowed to request a guarantee from a third party for the granting of the loan.

The “Coverage” program also started

At the same time, as announced by the Ministry of Labor and Social Affairs, the first family that joined the “Coverage” program of the Ministry of Labor and Social Affairs, for the free housing of vulnerable young people in private houses, settled in their new home, with the rent paid by the State .

The “Coverage” program is aimed at young people, aged 25-39, who are beneficiaries of the Minimum Guaranteed Income and do not own their own home. The goal, in this phase, is to house 3,000 beneficiaries, with the utilization of at least 1,000 houses.

As announced by the ministry, through the program, the State covers for three years the cost of renting private houses allocated for the accommodation of asylum seekers within the framework of the “ESTIA” program, which ended in December. The beneficiaries of the program additionally receive the costs of moving the household and transporting their household goods, while the owners, in addition to the guaranteed rent, which cannot exceed the rent they received through “ESTIA”, plus the inflation of 2022, they are also covered for any damages found in the properties during the lease.