The "First House" Program

The first House is a program of the Government of Romania, launched on 20 may 2009, intended to support individuals who acquire for the first time a dwelling and have not benefited in the past from the mortgage. Through this program, the Government guarantees 80% of the amount of loan for purchase of a dwelling.

The maximum amount of credit is of 60,000 euros, while for beneficiaries there is old age.

To date (July 2010), were acquired through housing 24,300 first House, the total amount of guarantees granted by the State being nearly 1 billion euros.

Stages

In the first step, the National Fund of credit guarantee for SMEs (NGFLSME) has granted guarantees for more than housing, 18,500 worth about 770 million euros. The maximum amount of a loan was 57,000 euros.

In the second stage of the program, which started in February 2010, the Fund has granted guarantees for housing approximately 5,800, value being around 220 million euros. Budget in 2010 to support the acquisition of the first dwellings is 700 million euros to one billion euros set aside in 2009. First home loan represents a loan granted in lei or euro in order to:

1. purchase a House completed;

2. purchase an unfinished housing in various stages construction, but to buy it immediately after its completion (the Bank will issue a unilateral promise lending);

3. construction of a House.

Clients eligible for the first home loan are people who either don`t own exclusive property or husband House wife any times, irrespective of the manner and time in which it was acquired, either owning exclusive property or husband times than one House wife, gained in any other way than through the First House in the area of less than 50 square meters.

The amount given by credit first home is for dwelling acquisition 57,000 euros completed or only for euro 66,500 constructions We have construction permit issued after the date of the advance 22.02.2010 the first House is at least 5%.

The loan period is at least 120 months and maximum of 360 months. Revenues for first home loans are those supported by standard bank: income from wages, pensions, or lifelong, dividend, independent activities, daytime Flight personnel, except for income from rents.

For the year 2016, the Romanian Government has set a ceiling on the first House of 1.5 million euros.