The "First Home" program, which is in full swing, has really become a program to help those who want a home and can not afford it because of income. The change of face was made possible by Law no. 40/2020 which was published in the Official Gazette no. 280/2020, so it is in force.
The Ministry of Public Finance proposes since 2019 the modification of the governmental program Prima Casa, in order to orient this program towards the social character, practically thus becoming “A family, a house”.
Here is the statement of the Minister of Public Finance at that time, Eugen Teodorovici:
“We completed the One Family, One House Program, following intense and constructive consultations with the representatives of the National Bank of Romania. The government's initiative is primarily social in nature, because we want to support low-income people. At the same time, we thought of helping young families to buy a decent home. We also support the construction sector and not only in terms of the program, which will have beneficial effects throughout the economy, ensure the maintenance or establishment of new jobs and help develop business. "
A family, a house:
The granting of subsidies will be verified annually and is conditional on the inclusion in the mentioned net income.
What is First Home Credit?
The "First House" program is a government program that aims to facilitate access for individuals to purchase or build a home by contracting state-guaranteed loans.
What are the conditions of the First Home loan?
a) at the date of application for the secured loan, declares on his own responsibility whether he does not own exclusively or together with the husband or wife any house, regardless of the manner and time when it was acquired, whether he owns exclusively or together with the husband or the wife not more than one dwelling, acquired by any other means than by the Program, with a usable area of less than 50 sq m;
b) acquires or builds a single dwelling, through a loan granted and guaranteed under the conditions of the Program;
c) has the quality of borrower in relation to the financier
Eligible beneficiaries will also have to meet the specific conditions set out in the internal lending rules of the financiers:
Documents required to obtain the loan:
What is the interest rate on the First Home loan?
The interest rate of the Prima Casă loan is composed of a fixed margin, established with the bank at the signing of the contract, and a variable margin, also called IRCC reference index (the index that replaced ROBOR)
The fixed margin may not exceed 2%.
How long does the First Home loan last?
The maximum repayment period of the loan is 30 years, the maximum period depends on the lending bank.
How long is the First Home loan granted?
The timing of a loan depends very much on the procedures of the banks and institutions involved.
The complete file reaches the bank and, if there are all the required documents, it reaches the Guarantee Fund, where it can stay for another 5 days. FNGCIMM analyzes the complete file and transmits the decision of the bank regarding the granting of the requested guarantee. On average, the whole process can take 1-2 months. This requires you to have the complete file, the terms set out in the pre-contract very clearly and, of course, a lot of patience.
A new home is a great achievement, for sure. It does not exclude, however, the process you will have to go through, the amounts involved, even if the state provides you with a part and the interest rates are not high, and the time you will allocate in this whole process.
By turning to a credit broker these steps can be simplified, and accessing such a loan is no longer a burden. Our real estate agency, Eurosib Imobiliare, has a good collaboration with the credit broker Smart Credit Finance from Sibiu, which can be found here https://www.creditbanci.ro
The new program "A family, a house" does not apply at the moment, as the bill will have to be adopted by Parliament, signed by the head of state and then published in the Official Gazette. Thus, the files submitted for the First House program will be solved according to the old rules. The files registered after the entry into force of the project will be resolved according to the new rules.
Furthermore, Eurosib Imobiliare will mediate the sale of new or old apartments through "A family, a house", offering the real estate consultancy necessary for the purchase.
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