Guide to Applying for the ICO Guarantee and Purchasing Your Home in 2024
One of the most anticipated initiatives for those seeking to acquire their first home is the ICO guarantee, announced at the beginning of last year. Despite not yet materializing, it is crucial to understand how to apply for it and how it will function once available.
What are ICO Guarantees for Housing?
ICO guarantees for housing are a government initiative aimed at young people and families who wish to purchase their first home but do not have sufficient savings for the initial payment required by financial institutions. The Government, through the Official Credit Institute (ICO), will guarantee the equivalent of 20% of the property’s value, thus allowing access to a loan for 100% of the home’s value.
How do ICO Guarantees for First Home Purchase Work?
These guarantees will be financed from the budget of the Ministry of Housing and Urban Agenda, with the Government sharing up to 20% of the loan risk with the financial institution. It is still unknown which entities will join this initiative, but they must be collaborators of the ICO.
Who Can Access ICO Guarantees?
The guarantees are aimed at young people under 35 and families with dependents. Individual incomes cannot exceed €37,800 gross per year, with the possibility of an increase in specific cases such as single-parent families or if the property has a minimum energy rating of D or higher.
How to Apply for ICO Guarantees for Home Purchase?
Although the deadline has not yet officially opened, it is expected that applications can be made through collaborating entities that join the initiative. The initial deadline for applying will end on December 31, 2025, with the possibility of an extension.
When Can You Apply for the ICO Guarantee for Mortgage?
There is still no defined date to apply for the guarantee, as the Government and entities are finalizing the details. It is expected that the initial deadline will be extended due to the delay in implementing this aid.
Though ICO guarantees for home purchase in 2024 have yet to materialize, it is essential to stay informed on how they will work and how to apply. At Living Sitges, we also offer legal and fiscal consultancy to ensure your real estate transaction is safe and complies with all current regulations.
In Living Sitges, we understand that buying a home is a crucial decision and want to provide you with all
the necessary support in legal and fiscal matters. Our legal and fiscal consultancy is designed to guide you through regulations and procedures, ensuring that your real estate transactions are secure and compliant with current regulations.
Our services include legal, fiscal, economic, and technical management:
- Advice on buying and selling, drafting, formalizing, and supervising contracts.
- Advice on urban leases, including drafting and formalizing contracts.
- Administration of properties and vertical property.
- Legal representation and defense in courts regarding urban leases and homeowners’ associations.
Additionally, we are prepared to assist you with tax settlements, inheritances, obtaining residence permits, nationality, and digital nomad life.
If you are considering buying a home and need advice on how to apply for the ICO guarantee once it is available, do not hesitate to contact us. We are here to help you at every step of the process, from finding your new home to completing the transaction.
Stay informed about the latest news regarding ICO guarantees for housing in 2024 and make sure to take advantage of this unique opportunity to make your dream of owning your own home a reality.
At Living Sitges, we are committed to making the home buying process as smooth and secure as possible for you. Contact us today for more information about our consultancy services and to start your journey to owning your new home.
Remember, at Living Sitges, we not only help you find your new home, but we also provide the legal and fiscal support you need to make your purchase with total confidence and peace of mind. We are here for you every step of the way!
Article by Living Sitges Real Estate