The Ministry of Housing and Urban Agenda, through the Official Credit Institute (ICO), has expanded the scope of the Guarantee Program for the purchase of a first home by young people and families with dependent children. The amendment raises the income thresholds required of beneficiaries and adapts them to the realities of the residential market in each region, so that the measure is most effective precisely in areas where buying a home requires a greater financial effort.

An income limit that now varies by province

The income limit is based on the IPREM and varies by province:

- Generally:** 4.5 times the IPREM, equivalent to €37,800 gross annually per buyer.

- Up to 5.5 times the IPREM:** Las Palmas, Navarre, Cantabria, Alicante, Cádiz, Pontevedra, Melilla, Ceuta, Valencia, and Zaragoza.

- Up to 6.5 times the IPREM:** Álava.

- Up to 7.5 times the IPREM:** Madrid, Barcelona, Girona, Málaga, the Balearic Islands, Santa Cruz de Tenerife, Bizkaia, and Gipuzkoa.

More Eligible Recipients: Couples, Families, and Assets

When a home is purchased by two people, their combined income may not exceed the sum of the income limits applicable to each individual.

In addition, the adjustment factors for families with dependent children remain in place: the income limit is increased by 0.3 times the IPREM for each child, and in the case of single-parent families, it may be raised by an additional 70%.

Finally, the net asset limit for buyers is raised from 100,000 to 150,000 euros. This measure is part of the new National Housing Plan.

What Is the Guarantee Program

The program is designed for those who are able to take on a mortgage but have difficulty saving the initial down payment required to purchase a home. The guarantee allows the financing provided by the lender to match the appraised value or the purchase price of the home.

Its main terms are:

- Guarantee coverage: up to 20% of the loan, extendable to 25% if the home has an energy efficiency rating of D or higher.

- Cost: free of charge for both buyers and financial institutions.

- Age: Young people must not be older than 35 on the date the loan is formalized; there is no age limit for families with dependent children.

- Term: Loans may be formalized through December 31, 2027.

Financing may be requested at any of the financial institutions participating in the program. Complete information, including the new income limits by province, is available on the [ICO website](https://www.ico.es/es).

At [Gassiot Advocats & Property], we assist buyers and sellers through every stage of the home-buying process. If you are considering applying for this Guarantee Program or need to review the terms of your real estate transaction, please do not hesitate to contact us.