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President Luiz Inácio Lula da Silva (PT) ratified the Minha Casa Minha Vida MP this week. Check out the details below.
The Minha Casa Minha Vida Provisional Measure (MP), after an extensive period of analysis in the National Congress, received President Lula’s ratification. It is important to note that the renewed text provides for revisions to several rules governing the home financing scheme.
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For clarification, we have organized a series of questions and answers about Minha Casa Minha Vida. This way, the population can understand what has changed, what still applies and the actions needed to begin making the dream of owning a home a reality, following the guidelines of the Federal Government’s new project.
Questions and answers about Minha Casa Minha Vida
Who can sign up?
The renewed version of Minha Casa Minha Vida expands the number of families that can apply to the program. The current objective is to serve those with a monthly income of up to R$ 8,000 in urban areas and up to R$ 96,000 in rural areas.
Read also: Exceptional Benefit Will Reach 20,000 Families; See if You Are Eligible
Don't know your total income? Simply add up all the monthly income of all members of your family. It is important to emphasize that benefits from social and social security programs such as Bolsa Família, sickness benefits, and unemployment insurance are not included in the income total.
- What are the new income brackets?
The ratified MP introduces new income brackets, which vary according to where the citizen lives. See:
Urban areas
- Bracket 1: monthly income of up to R$ 2,640
- Bracket 2: monthly income from R$ 2,640.01 to R$ 4,400
- Bracket 3: monthly income from R$ 4,400.01 to R$ 8,000
Rural areas
- Bracket 1: annual income of up to R$ 31,680
- Bracket 2: annual income from R$ 31,608.01 to R$ 52,800
- Bracket 3: annual income from R$ 52,800.01 to R$ 96,000
What is the financing capacity?
Minha Casa Minha Vida can finance up to 80% of the value of the desired property. The remaining amount, which must be paid as the financing down payment, can be reduced through government subsidies or even the citizen's FGTS.
Read also: Bolsa Família Withdrawal Without Documents Shocks Brazilians
The installments for the remaining amount must be paid off within up to 35 years, and each installment may account for up to a maximum of 30% of the income agreed upon with the property buyers. For example, a family earning R$ 3,000 per month can pay monthly installments of up to R$ 900.
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What is the value of the properties?
The value of properties that can be financed through Minha Casa Minha Vida varies according to the citizen's location. See:
Urban areas
- Income Bracket 1 (subsidized): up to R$ 170,000
- Income Brackets 1 and 2 (financed): up to R$ 264,000
- Income Bracket 3 (financed): up to R$ 350,000
Rural areas
- New homes: maximum amount increased from R$ 55,000 to R$ 75,000
- For home improvements: amount increased from R$ 23,000 to R$ 40,000
What are the interest rates?
Caixa Econômica Federal states that the interest rates for Minha Casa Minha Vida financing are the lowest on the market. In fact, these rates vary by income bracket and region. Learn more below:
Tier 1
Gross monthly family income of up to R$ 2,000:
FGTS contributor: 4% in the North and Northeast and 4.25% in the South, Southeast and Central-West
Non-contributor: 4.50% in the North and Northeast and 4.75% in the South, Southeast and Central-West
Gross monthly family income from R$ 2,000.01 to R$ 2,640:
FGTS contributor: from 4.25% in the North and Northeast and from 4.50% in the South, Southeast and Central-West
Non-contributor: from 4.75% in the North and Northeast and from 5% in the South, Southeast and Central-West
Tier 2
Gross monthly family income from R$ 2,640.01 to R$ 3,200:
FGTS contributor: from 4.75% in the North and Northeast and from 5% in the South, Southeast and Central-West
Non-contributor: from 5.25% in the North and Northeast and from 5.50% in the South, Southeast and Central-West
Gross monthly family income from R$ 3,200.01 to R$ 3,800:
FGTS contributor: from 5.50% nationwide
Non-contributor: from 6% nationwide
Gross monthly family income from R$ 3,800.01 to R$ 4,400:
FGTS contributor: from 6.50% nationwide
Non-contributor: from 7% nationwide
Tier 3
Gross monthly family income from R$ 4,400.01 to R$ 8 thousand:
FGTS contributor: from 7.66% nationwide
Non-contributor: from 8.16% nationwide.
