The dream of owning a home is a common desire for many Brazilians. One way to make this dream come true is through the program My Home, My Life, which offers several advantages.
Through this program, many Brazilian citizens were able to stop paying rent and acquire their dream home, with low interest rates and installments compatible with their income.
Initiatives such as the My Home, My Life have enabled thousands of Brazilian families to obtain adequate housing.
Want to understand how this works? Stay with us!
What is My Home, My Life?
The program “My Home, My Life” (MCMV) is an initiative of the Federal Government of Brazil, originally launched in 2009, with the aim of facilitating access to housing for low-income families.
The program is divided into different income brackets and provides subsidies (financial support that reduces the amount to be paid) for the acquisition of a home. These subsidies vary according to the family's income bracket, being more substantial for families with lower incomes.
The program also works in partnership with states, municipalities, companies and non-profit entities to build housing, which can be either houses or apartments.
In 2020, the Brazilian government launched the “Casa Verde e Amarela” program to replace the “My Home, My Life“, maintaining the focus on affordable housing but with some changes in the details of how it works. However, the “My Home, My Life” was reintroduced in 2023.
It is important to note that the terms and conditions of these programs may change over time, so it is always a good idea to consult up-to-date sources for accurate information.
How does My Home, My Life financing work?
Owning a home is a common goal for many Brazilian households, and the financing program My Home, My Life can be a means of making this dream a reality. However, it is necessary to understand the details of this advantage.
The family that wishes to join must meet certain social conditions.
The rules for financing, in turn, will be established according to the income range stipulated by the Ministry of Cities, the entity that administers the program. It is worth noting that this categorization is made into: Urban Range (1, 2 and 3) and Rural Range (1, 2 and 3).
A notable advantage is that affordable housing and housing complexes can be located in both urban and rural areas.
Financing can be used for the acquisition of both new and used properties. In addition, it is possible to use the program for constructions in urban areas and to carry out renovations or modifications aimed at the disabled public.
Use of FGTS for settlement
The Severance Pay Guarantee Fund (FGTS) is a guarantee established for those who have formal employment, with a registered employment record.
Therefore, those who wish to finance through the program My Home, My Life can use the FGTS in certain circumstances, such as to pay the down payment on a property or to reduce the outstanding balance.
However, both the contract and the property must comply with all the criteria of the Housing Finance System (SFH) when the property is purchased.
Settlement period
There are many uncertainties regarding the financing payment period My Home, My Life. According to Caixa Econômica Federal, the term is up to 35 years for settlement.
Discounts can reach up to R$47,500.00. In this scenario, some factors will be taken into consideration, such as:
- Particularities of the population in each region;
- Payment ability;
- Social aspects;
- Performance.
Income ranges for My Home, My Life financing
In the Minha Casa, Minha Vida program, classification is based on gross family income. See how this classification occurs for families living in urban areas:
- Urban Category 1 = gross family income up to R$ 2,640.00 per month;
- Urban Category 2 = gross family income from R$ 2,640.01 to R$ 4,400.00 per month;
- Urban Category 3 = gross family income from R$ 4,400.01 to R$ 8,000.00 per month.
For families living in rural areas, the division is as follows:
- Rural 1: gross family income up to R$31,680.00 per year;
- Rural 2: gross family income from R$ 31,680.01 to R$ 52,800.00 per year;
- Rural Category 3: gross family income from R$52,800.01 to R$96,000.00 per year.
Interest rates for My Home, My Life financing
It is essential to pay attention to the interest rates imposed by the entity providing the financing.
For financing My Home, My Life, rates may change depending on the family's income bracket, the value of the property and its location.
However, with this financing option, customers have the chance to find competitive interest rates.
Advantages and disadvantages of My Home, My Life financing
Do you have the goal of owning your own home? Financing My Home, My Life may be the answer, as it has several benefits.
However, there are some aspects that can be improved.
Pros
- Competitive interest rates and discounts;
- A service suitable for families with lower incomes;
- Repayment period of up to 35 years;
- Financing available for both new and used property acquisitions (in urban or rural areas);
- The contractor has the option of building, renovating or adapting a property;
- There is a monthly income category for families that have an income of up to R$ 2,640.00;
- Allows the use of FGTS;
- The contractor can use the Caixa Housing Simulator.
Cons
- The gross family income considered does not include temporary benefits;
- The Caixa Econômica Federal website could offer more details about the service;
- The maximum value of the property for financing must be up to R$ 264,000.00.
How do I apply for My Home, My Life financing?
Financing can be the perfect solution for those who dream of owning their own home. One of the options currently available is financing. My Home, My Life, which stands out for its lower interest rates.
With this option, the client has a period of up to 35 years to pay off the financing. In addition, there is the option of purchasing already used properties and using the FGTS.
Interested? See how to obtain this financing here!
