Learn About the Initial Costs of the Minha Casa Minha Vida Program: Financial Details Revealed!

The aspiration to own a home is common to many Brazilians and the Minha Casa Minha Vida program has played a crucial role in making this dream come true for thousands of homes.

Started in 2009, the program underwent a reformulation with Casa Verde e Amarela during the Bolsonaro administration, but has now resumed, more consolidated, in this first semester of the Lula government.

The program has always stood out for offering easy installments of the total value of the residence, government subsidies and a preference for low-income families.

However, since it is a social program, it is vital to understand the conditions required to enroll in the program. Similarly, since it is a financing program, it is necessary to ensure that the installments are appropriate to the family budget to avoid setbacks.

Continue reading and discover all the information you need to make your dream of owning your own home come true!

My Home My Life: Income Requirements

Despite improvements over the years, the number of people without their own homes in the country remains alarming. According to the João Pinheiro Foundation, in 2019, the housing deficit in Brazil totaled 5.8 million homes. The main reason for this was the exorbitant cost of urban rent, which can consume more than 30% of family resources.

Read also: Withdrawal of Bolsa Família without documents shocks Brazilians

Therefore, Minha Casa Minha Vida clearly stipulates the income brackets that can participate in the program, prioritizing the lower classes. They are:

• Urban Band 1: monthly gross family income up to R$ 2,640;
• Urban Band 2: monthly gross family income from R$ 2,640.01 to R$ 4.4 thousand;
• Urban Band 3: monthly gross family income from R$ 4,400.01 to R$ 8,000.
• In relation to families living in rural areas, the ranges are as follows:
• Rural Band 1: annual gross family income up to R$ 31,680;
• Rural Band 2: annual gross family income from R$ 31,680.01 to R$ 52.8 thousand;
• Rural Band 3: annual gross family income from R$ 52,800.01 to R$ 96 thousand.

My Home My Life: Proof of Income

Proof of income is one of the most important criteria for determining the eligibility of candidates. Household income, as the name suggests, is the sum of the monthly earnings of each member of a family.

Therefore, in a household where the man earns R$2,000 and the woman earns R$2,000, the family income is R$4,000. The program does not take into account temporary, welfare or social security benefits as part of the income, such as sickness benefit, unemployment insurance, Continuous Payment Benefit (BCP) and Bolsa Família.

What is gross income?

Gross income, on the other hand, is the amount of your earnings before taxes, social security contributions, and other deductions. For people with formal employment contracts, it is the amount that appears on their pay slip, in addition to additional income, such as the 13th salary, vacation pay, and profit sharing.

What will be the entry fee?

In June, the Ministry of Cities released four ordinances with new rules for units built in urban areas. Among them were the conditions for entry.

The down payment for the Minha Casa Minha Vida property can be made in three ways: with your own resources, with the FGTS (Guarantee Fund for Length of Service) or through a government subsidy.

Own Resources

Those who have saved up to buy their own home can use the money they have saved as a down payment on a Minha Casa Minha Vida property. The remaining value of the property will be financed by Caixa. The down payment reduces the financed amount, which results in smaller installments over the term.

Allowance

A housing subsidy is the amount that the Federal Government makes available to families with lower incomes. The goal is to help reduce the value of property installments, allowing more people to have access to their own home.

The subsidy is based on income: the lower the income, the higher the government aid. The ceiling on the amount was set at:

• Up to R$170,000 for new properties in urban areas and social rentals, with resources from the Residential Rental Fund or the Social Development Fund;
• Up to R$ 75 thousand for new properties in rural areas, with resources from the Union;
• Up to R$ 40 thousand for housing improvements in rural areas, with resources from the Union.

FGTS

Read also: Expanded benefits: property purchase program with FGTS will be increased;

The FGTS works as a type of savings account for workers. Workers who have a balance in their FGTS accounts can use it to reduce the amount agreed between the citizen and the Minha Casa Minha Vida program by up to 80%.

This can reduce the amount financed and, consequently, the amount of interest. In addition, Guarantee Fund members benefit from lower interest rates.

To be able to use the FGTS, the member must have at least three years of accumulated values, adding up all the periods worked.

What will be the value of the installment?

Once the family has proven that they meet the main income requirements to participate and choose the property, they can simulate the financing, in person or online, through the Caixa website.

At this point, the value of the installment to be paid each month is simulated, taking into account the down payment given (or without it), the desired term and the value of the property.

Interest rates for Minha Casa Minha Vida financing are calculated according to the family income bracket. The maximum term for real estate financing is 35 years.

With the new resolutions, the benefit can represent up to 30% of the families' monthly gross income. This means that if the monthly gross income is R$ 2,000, the maximum benefit amount will be R$ 600.

My Home My Life: How to Sign Up

Families interested in participating in the Minha Casa Minha Vida program can register in different ways, depending on their situation and the income bracket to which they belong.

1. People who fit into Urban 1 and Rural 1 Bands need to register for the program through the city hall or the body responsible for the housing sector in their city.
2. Families that fit into the Urban 2 and 3 or Rural 2 and 3 bands can register directly with an organizing entity, a financial institution that participates in the program, or through the official Caixa Econômica Federal website.

My Home My Life: Necessary Documentation

To register for the Minha Casa Minha Vida program, families need to present some important documents. They are:

• Official identification document (RG, CNH);
• CPF;
• Updated proof of residence;
• Proof of income for the last 6 months (pay slips, bank statements);
• Birth or marriage certificate;
• Employment and Social Security Card (CTPS);
• Income Tax Declaration, if applicable.

In addition to these, if the candidate is self-employed or an informal worker, it may be necessary to present the INSS payment slip with up-to-date payments, the personal income tax return with receipt of delivery to the Federal Revenue Service or a declaration of activity.

My Home My Life: Final Considerations

The dream of owning a home is a reality for millions of Brazilians thanks to the Minha Casa Minha Vida program. However, it is essential to understand the program's requirements and conditions before signing up.

If you fall within the permitted income brackets and have the necessary documents in hand, don't waste any more time. Run a financing simulation and see the property options available in your area. Your dream home may be closer than you think!