Housing credit for young people 100% financed: How to submit CPCV?
The benefit of the public guarantee that the State has put in place for young people up to 35 years old allows for 100% financing of the house without having to finance any down payment amount. But what happens to the deposit that must be paid in the CPCV, before the deed? Find out the options next.
How to finance the CPCV signal without any down payment, in young housing credit 100% financed?
With the new public guarantee measure, which allows young people up to 35 years old to access 100% home financing, some challenges arise.
Remember that this measure guarantees the remaining percentage not covered by the banks in home credit for the purchase of a property, up to 15%.
That is, young people who meet all the access requirements for this measure may have access to bank financing (between 80% and 90% of the property value) and to public guarantee financing the remaining value.
Therefore, it can apply to young people who do not have savings to give as a down payment in this process. But, in this case, the question arises: How to give the signal value in the Promise Purchase and Sale Contract (CPCV)?
Notice first: CPCV: What is it and what is this contract for?
This contract is signed before the deed of the property and usually requires the payment of a deposit (the down payment) to the seller. But what about those who don't have this amount?
There are two options for these cases:
1st option
The seller can accept to reserve the property and sign the CPCV without being given the down payment (usually 10% of the total). However, this is a rare option, as sellers usually find it more difficult to accept these cases, since the payment provides greater security and commitment on how the deal will progress.
2nd option
The seller accepts that the down payment amount is lower than the usual 10% and the buyer signals the house and signs the CPCV with an agreed value between the two. In this case, the bank still finances 100% and the buyer receives the down payment amount back.
For example:
- Acquisition value: 100,000€
- Signal: 2,000€
- Bank financing: €100,000
The buyer delivers the 2,000€ deposit when signing the CPCV and, at the deed of sale, is still missing to deliver 98,000€. The bank transfers the 100,000€ to the buyer and at the deed of sale, only transfers 98,000€ to the seller. The loan remains at 100,000€ and the buyer recovers the initially delivered 2,000€.
There is still an exception currently, in certain banks, which is a down payment credit line. Through this line, both parties sign a CPCV with a down payment value of up to 10% of the purchase price, the customer takes the CPCV to the bank to finance the down payment value and this is delivered to the seller, and, at the deed, the remaining amount is transferred. However, this situation requires the CPCV and down payment transfer to be made with all parties present at the counter, which can complicate the logistics.
Read more: How to save to make the down payment on buying the first house?
If you are looking to buy a house financed through this measure, save yourself from this whole process: The credit intermediaries of Poupança no Minuto facilitate and handle everything for you until the deed, at no cost, to ensure that you access this benefit without worrying about anything.
Get in touch with the agents now and start your process today!