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The aspiration to own a home is common among many Brazilians, and the Minha Casa Minha Vida program has played a crucial role in making this dream a reality for thousands of households.
Launched in 2009, the program underwent a reformulation under the Casa Verde e Amarela program during the Bolsonaro administration, but has now returned, more consolidated, in the first half of the Lula government.
The program has always stood out for offering affordable installment plans for the total cost of the residence, government subsidies, and a preference for low-income families.
However, as a social program, it is vital to understand the conditions required to enroll in it. Likewise, since it involves financing, it is necessary to ensure that the installments fit the family budget to avoid setbacks.
Keep reading and discover all the information you need to turn the dream of owning your own home into reality!
Minha Casa Minha Vida: 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, Brazil's housing deficit totaled 5.8 million residences. The main reason for this was the exorbitant cost of urban rent, which can consume more than 30% of household resources.
Read also: Bolsa Família Withdrawal Without Documents Shocks Brazilians
Therefore, Minha Casa Minha Vida clearly stipulates the income brackets that can participate in the program, prioritizing lower-income classes. They are:
- Urban Bracket 1: monthly gross family income up to R$ 2,640;
- Urban Bracket 2: monthly gross family income from R$ 2,640.01 to R$ 4.4 thousand;
- Urban Bracket 3: monthly gross family income from R$ 4,400.01 to R$ 8 thousand.
- For families living in rural areas, the brackets are as follows:
- Rural Bracket 1: annual gross family income up to R$ 31,680;
- Rural Bracket 2: annual gross family income from R$ 31,680.01 to R$ 52.8 thousand;
- Rural Bracket 3: annual gross family income from R$ 52,800.01 to R$ 96 thousand.
Minha Casa Minha Vida: Proof of Income
Proof of income is one of the most important criteria for determining applicants' eligibility. 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 household income is R$ 4,000. The program does not take temporary, social assistance or social security benefits into account as part of the income, such as sickness benefit, unemployment insurance, Continuous Cash Benefit (BCP) and Bolsa Família.
What is gross income?
Gross income, in contrast, is the value of your earnings before deductions for taxes, INSS, among others. For people with a formal employment contract, it is the amount shown on the payslip, in addition to extra income, such as the 13th salary, vacation pay and profit sharing.
What will the down payment amount be?
In June, the Ministry of Cities issued four ordinances with new rules for units built in urban areas. Among them were the conditions for the down payment.
The down payment for a Minha Casa Minha Vida property can be made in three ways: with your own funds, with FGTS (Severance Indemnity Fund) funds, or through a government subsidy.
Own Funds
Those who have saved with the goal of owning a home can use the accumulated money as a down payment on a Minha Casa Minha Vida property. The remaining amount will be financed by Caixa. The down payment reduces the amount financed, resulting in lower installments over the term.
Subsidy
A housing subsidy is an amount that the Federal Government makes available to families with lower incomes. The goal is to help reduce the property's installment amounts, allowing more people to access homeownership.
The subsidy is based on income: the lower the income, the greater the government assistance. The maximum amount was set at:
- Up to R$ 170,000 for new properties in urban areas and social rentals, with resources from the Residential Leasing Fund or the Social Development Fund;
- Up to R$ 75,000 for new properties in rural areas, with Union resources;
- Up to R$ 40,000 for housing improvements in rural areas, with Union resources.
FGTS
Read also: Expanded benefits: FGTS home purchase program to receive an increase;
FGTS works as a kind of worker’s savings account. Workers who have a balance in their FGTS accounts can use it to reduce by up to 80% the amount agreed upon between the citizen and the Minha Casa Minha Vida program.
This can reduce the financed amount and, consequently, the amount of interest. In addition, Fundo de Garantia account holders benefit from lower interest rates.
To be able to use FGTS, the account holder must have at least three years of accumulated contributions, adding up all periods worked.
What will the installment amount be?
After the family proves that it meets the main income requirements to participate and chooses the property, it can simulate the financing in person or online through the Caixa website.
At this point, the amount of the installment to be paid each month is simulated, taking into account the down payment made (or without one), the desired term, and the value of the property.
The 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 installment may represent up to 30% of families' monthly gross income. This means that if the monthly gross income is R$ 2,000, the maximum installment amount will be R$ 600.
Minha Casa Minha Vida: How to Apply
Families interested in participating in the Minha Casa Minha Vida program can apply in different ways, depending on their situation and the income bracket to which they belong.
- People who fall into Urban Tier 1 and Rural Tier 1 must apply for the program through the city government or the agency responsible for the housing sector in their city.
- Families who fall into Urban Tiers 2 and 3 or Rural Tiers 2 and 3 can apply directly through an organizing entity, a financial institution that participates in the program, or through the official Caixa Econômica Federal website.
Minha Casa Minha Vida: Required Documentation
To apply for the Minha Casa Minha Vida program, families need to submit some important documents. They are:
- Official identification document (RG, CNH);
- CPF;
- Up-to-date proof of residence;
- Proof of income for the last 6 months (pay stubs, bank statements);
- Birth or marriage certificate;
- Work and Social Security Card (CTPS);
- Income Tax Return, if applicable.
In addition, if the applicant is self-employed or an informal worker, it may be necessary to provide the INSS payment booklet with up-to-date payments, an individual income tax return with proof of submission to the Federal Revenue Service, or a statement of activity.
Minha Casa Minha Vida: 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 applying.
If you fall within the permitted income brackets and have the necessary documents on hand, don't waste any time. Simulate financing and see the property options available in your region. The home of your dreams may be closer than you think!
