ICO Guarantee: what it is and requirements to apply for it

In February 2024 was finally approved a measure promoted by the current government and announced before the general elections last year in order to facilitate access to the purchase of a first home for both young people and families with dependent children. It is what is known as ICO guarantee and next we will tell you everything you need to be able to apply for this new housing aid.

What is an ICO guarantee?

The ICO guarantees are a set of credits that the government, through the Official Credit Institute, offers to young people and families with minors in order to facilitate the access to the purchase of a first home.

This line of ICO guarantees is made up of 2.5 billion euros, which will be available to around 50,000 applicants, provided they meet the requirements shown below.

This aid, in the form of an ICO guarantee, is destined to 20% of the amount of the purchase of the first home, covering part of the mortgages destined to this transaction.

Who can apply for the ICO guarantee line?

The new line of ICO guarantees is aimed at young people under 35 years of age whose income is less than €37,800 per year, as well as families with dependent children. These points are detailed below. 

For what type of housing can ICO guarantees be requested?

Many people believe that this is the best time in recent years to buy a house thanks to the government’s ICO loans. But it should be noted that it is necessary to take into account that it is not feasible in all cases or in all types of houses.

This aid is intended for the purchase of a first home, as long as it is for the habitual and permanent use of the owner of the mortgage.

As for the cost of the house to acquire, this requirement will depend directly on the autonomous community in which it is located, since the prices of these can vary notoriously from one region to another.

Requirements to apply for ICO guarantees in 2024

What has been commented above, it can be determined that the main requirements to be met in order to be able to apply for the government’s ICO loans are:

• That the applicant is under 35 years of age and has an annual income of less than €37,800, or is a family with dependent minors.
• The applicant must be over 18 years of age and must have been legally resident in the country for the last two years without interruption.
• That he/she acquires the home in Spanish territory, that this is the first home to be purchased and that it will be his/her habitual residence.
• That the applicant does not have assets of more than €100,000.
• The application must be made within the deadline set by the government, which establishes that it will collect these applications until December 31, 2024.

Regarding the cost of the housing, as mentioned above, it will depend on each autonomous community, so here are some aspects of some of the main regions of Spain.

How to apply for the ICO guarantee in Catalonia?

If you want to buy an apartment in Barcelona,Girona, Lleida or Tarragona, you should know that the steps to do it in Catalonia are the following: choose the house you want to buy, of course, and then, the bank with which you want to process the mortgage, always looking for the possibility of applying for an ICO guarantee.

Once this is done, the financial entity will be in charge of helping to manage the procedure.

How to apply for the ICO guarantee in Madrid?

Those who are looking to buy an apartment in the capital and wish to take advantage of the ICO guarantee line, should know that the procedure is the same as in the case of Catalonia.

¿Cómo solicitar el aval ICO en Andalucía?

En caso de querer comprar un piso en Andalucía, ya sea en Sevilla, Málaga o cualquier otra provincia, los requisitos para solicitar los nuevos préstamos ICO en la comunidad son los mismos que en el resto de España, con la diferencia que en este caso el coste máximo de la vivienda será distinto a los dos casos anteriores (estos límites están aún por determinar).  

How to apply for the ICO guarantee in Valencia?

If what you want is to buy an apartment in Valencia, we remind you that the steps to follow after choosing the property in question is to go to a financial institution that offers these ICO guarantees and that it is the one that will guide you through the process.

In addition to knowing everything about this new government credit, it is important that you know the mistakes you should avoid when buying a home, such as correctly determining the budget and choosing the option with the location and size best suited to your case.