The Salvadoran Government’s Housing System is set to invest $228.1 million in housing credits throughout 2024, leveraging various programs facilitated by institutions such as the Housing Social Fund (FSV) and the National Popular Housing Fund (Fonavipo).
Michelle Sol, the head of the housing portfolio, outlined the allocation, emphasizing a projected disbursement of $170 million solely through the FSV. This funding will be directed towards initiatives like Casa Joven, Casa Mujer, and Casa Nueva, all aimed at providing affordable housing solutions.
«This will translate into numerous families being able to purchase their own homes,» stated Sol.
Highlighting the government’s commitment to expanding housing opportunities, Sol announced a fourth enhancement in credit conditions through the FSV effective January 16. Notable changes include a reduced interest rate of 2% for extraordinary assets up to $25,000, down from the previous 3%, and maintaining a zero down payment requirement. Casa Mujer also broadens its eligibility criteria, extending the age and maximum income levels for applicants.
Furthermore, in Casa Nueva, the ceiling for social interest credit has been raised from $30,000 to $40,000, featuring a 4% interest rate and zero down payment.
«If a 30-year-old wishes to purchase their first home, opting for a new one priced at $40,000, their monthly installment would be as low as $230, even lower than renting. In the case of recovered housing, we offer installments of less than $50, with a 2% interest rate and no down payment,» emphasized the minister.
It’s noteworthy that this projected investment adds to the over $783.2 million in credits already disbursed during President Nayib Bukele’s four and a half years in office, reflecting a robust commitment to addressing the nation’s housing needs.