The updated conditions of the “First House” (Prima Casa) state program came into force
The relevant amendments were published in Monitorul Oficial (the Official Journal of Moldova). Due to the amendments to the current primary legislation, adopted earlier by the Government and Parliament, the maximum value of housing that can be purchased under the “First House” program increased from 1 million to 2.5 million lei, and the term of financing increased from 25 to 30 years. There is no age limit of up to 50 years in the conditions of the program. The beneficiaries will be citizens who do not own a dwelling, or own it together with their relatives, provided that its area does not exceed 50 square meters, or the dwelling is located in a village, commune, except for Chisinau. Also, citizens who have already participated in the program and bought no more than 1 residential property with an area of up to 50 sq. m. and have already repaid the mortgage loan will have access to the program. To obtain a mortgage loan under the program a physical person must meet a number of criteria. It is necessary to be a citizen-resident of Moldova and to receive (beneficiary and/or his/her spouse) official income to pay the mortgage loan. At the same time, the ratio between the monthly installment together with the interest rate and the guarantee fee and the total net income of the beneficiary and his/her relatives of the first degree of consanguinity and/or spouse of the beneficiary, who participate in the repayment of the mortgage loan as a co-debtor, is calculated in accordance with the mortgage lending rules of the National Bank of Moldova and cannot exceed 70%. The beneficiary of the program will be able to request refinancing of the mortgage loan from another lender approved for participation in the program. In this case, the state guarantee will be transferred to the new creditor (in the ratio approved at the time of issuance). The balance of the mortgage loan (principal amount) intended for the purchase of housing under the program, net of interest, commissions and other bank charges is guaranteed between 50% and 70%, depending on the category of housing. It also provides for the abolition of the initial own contribution of the beneficiary in the amount of at least 5% of the price of housing. //25.10.2024 - InfoMarket.
