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The dream of owning a home is one of the most common among Brazilians. However, for many families, this dream is unattainable due to the high costs of the real estate market.
To help these families, the government offers subsidies for the purchase of real estate.
Government subsidies are granted through programs such as Minha Casa Minha Vida (MCMV) and Casa Verde e Amarela (CVA).
These programs are aimed at families with a gross monthly family income of up to R$7,000.00.
The subsidy amount is calculated based on family income, the value of the property and the region where it is located.
In general, the subsidy can reach up to 30% of the property value.
To apply for the government subsidy, you must meet the following requirements:
- Be Brazilian born or naturalized;
- Be at least 18 years old;
- Not having benefited from another government housing program;
- Have a gross monthly family income of up to R$ 7,000.00;
- Not being the owner of a residential property;
- Not having active real estate financing;
- No restrictions on CPF.
Major construction companies in Brazil offer properties that are eligible for government subsidies. These companies often have a dedicated channel for clients who wish to purchase a property with subsidies.
Here are some examples of how subsidized property purchases work at some of Brazil's largest construction companies:
MRV
MRV is one of the largest construction companies in Brazil and offers a variety of properties that are eligible for government subsidies.
To purchase a property with an MRV subsidy, the customer must contact the construction company and request special assistance for subsidized customers.
MRV will request the documents necessary for credit analysis, including personal documentation, property documentation, and family income documentation.
After analyzing the credit, MRV will inform the customer whether they have been approved for the subsidy.
If the customer is approved for the subsidy, MRV will calculate the subsidy amount and include it in the financing installment. The customer will only pay the difference between the property value and the subsidy amount.
[related-article id={970} call={HOW TO REGISTER} text={Learn how to register for the program to buy your own home for the year 2024} title={Learn about the Minha Casa Minha Vida 2024 program}]
Tent
Tenda is another large Brazilian construction company that offers properties that are eligible for government subsidies.
To purchase a property with a Tenda subsidy, the customer must contact the construction company and request special assistance for subsidized customers.
Tenda will request the necessary documents for credit analysis, including personal documentation, property documentation and family income documentation.
After analyzing the credit, Tenda will inform the customer whether they have been approved for the subsidy.
If the customer is approved for the subsidy, Tenda will calculate the subsidy amount and include that amount in the financing installment amount.
The client must only pay the difference between the value of the property and the subsidy amount.
Green and Yellow House
Casa Verde e Amarela is a federal government program that replaced Minha Casa Minha Vida. The program offers subsidies for home purchases worth up to R$1,000,000.
To apply for the Casa Verde e Amarela subsidy, the customer must contact a financial institution affiliated with the program.
The financial institution will request the documents necessary for credit analysis, including personal documentation, property documentation, and family income documentation.
After analyzing the credit, the financial institution will inform the customer whether they have been approved for the subsidy.
If the customer is approved for the subsidy, the financial institution will calculate the subsidy amount and include that amount in the financing installment amount.
The client must only pay the difference between the value of the property and the subsidy amount.
Government subsidies are an excellent opportunity for low-income families to purchase their own home.
However, it is important to check the requirements and conditions of each program to ensure you are eligible for the subsidy.
How Does the Government Subsidy Work in Practice?
Government subsidies, such as those offered by the Minha Casa Minha Vida and Casa Verde e Amarela programs, help reduce the cost of homeownership. These subsidies are calculated based on family income, property value, and the region where the property is located. Depending on your financial situation and the property you want, you can receive up to 30% discount on the property value.
The most interesting part is that the subsidy doesn't have to be repaid. It acts as a financial aid that makes the loan installments more affordable, reducing the total amount to be paid. However, the subsidy amount varies according to the program's criteria and your eligibility.
Difference between My House My Life and Green and Yellow House
While both programs offer subsidies for home purchases, there are some important differences between them. My House My Life was replaced by Green and Yellow House, but both aim to facilitate access to home ownership for low-income families.
My House My Life (MCMV): It was aimed at properties up to R$ 240,000.00, with larger subsidies for lower-income families.
Green and Yellow House (CVA): It replaced the MCMV (Mortgage Mortgage Loan) and increased the property value limit to R$350,000.00. It focuses more on underserved areas and offers more affordable interest rates.
Benefits of the Real Estate Purchase Subsidy
Here are the main benefits of applying for a government subsidy to purchase your property:
Reduction in financing amount: The subsidy can cover up to 30% of the property value, which makes the installments much more affordable.
Lower interest rates: The program offers more advantageous conditions with reduced interest rates compared to other forms of financing.
Access to home ownership: For many families, subsidies are their only real opportunity to acquire their own property.
Quality properties: The program's partner construction companies offer properties with good infrastructure and construction quality.
Common Mistakes When Applying for a Government Grant
While the application process is straightforward, some mistakes can delay your approval. Please note the following points:
Incomplete documentation: Always submit all required documents and keep them up to date.
Income limit: Make sure your gross household income is within the program limits.
Not checking the conditions of the region: Some subsidies are region-specific. Make sure your chosen property is within the eligible areas.
These are crucial details that can make the difference in getting your grant application approved.