First home loan purchase mortgage: the guide for the applicant

With the Government Agency first home purchase mortgage you can get up to 300 thousand USD for the home of your desires, with facilitated repayment terms. But what are the interest rates applied and how to get it? Find out all the answers with our guide.

Who are the beneficiaries of the Government Agency mortgage

Who are the beneficiaries of the Government Agency mortgage

The Government Agency first home purchase mortgage is a credit line provided by Social Institute. In fact, the Government Agency no longer exists, the institution has been suppressed and its functions have passed to Social Institute, therefore including credit activities.

Before going into the substance of the proposal, let’s first identify the target audience. The Government Agency first home purchase loan is intended for workers and pensioners enrolled in the autonomous unitary management of credit and social benefits.

Employees must be able to count on an open -ended contract, and there is an enrollment period of at least one year.

Social Institute mortgages: amounts and purposes

Social Institute mortgages: amounts and purposes

The issue of amounts is more complex. The purposes determine the maximum sums that can be obtained:

  • in the event of purchase or construction of the first house, not luxury from the cadastral point of view, the maximum sum corresponds to 300 thousand USD;
  • for maintenance or renovation works on the main house, the amount cannot exceed 150 thousand USD. The limit of 40% of the value of the home must be respected (object of appraisal);
  • if the loan is required for the construction of a garage/parking space (pertaining to the main house and no more than 500 meters away), the maximum amount corresponds to 75 thousand USD.

The request for funding must be made within specific periods of the year: the first ten days of January, May or September. Invitation that must occur electronically, using the online services of the Social Institute portal (Social Institute.it).

Government Agency Social Institute mortgages: rate and duration of the loan

Government Agency Social Institute mortgages: rate and duration of the loan

Regarding the interest rate, the borrower can choose between two options:

  • the fixed rate is 2.95%;
  • the variable rate is instead equal to the 6-month Best Bank, calculated over 360 days, increased by 200 basis points.

The amortization plan is in the French style and provides for constant and deferred half-yearly installments. The duration varies, ranging from a minimum of 10 to a maximum of 30 years. It should also be considered that if the borrower is 65 years old, the maximum duration is reduced to 15 years.

The installments are paid with precompiled, which can be downloaded from the online services of the Social Institute portal (Social Institute.it). PIN required, personal identification code issued by the social security institution.

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