Minister of Housing Announces $2.5 Billion Investment to Boost Housing Sales in Colombia

The Minister of Housing, City and Territory, Catalina Velasco Campuzano, announced this Thursday the investment of $2.5 billion to boost housing sales in the countrythrough mortgage loans and builders.

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This strategy will be carried out in the company of Laura Milena Roa Zeidán, president of the National Savings Fund, and Juan Carlos Muñiz Pacheco, president of Findeter.

“In addition to the measures we have already taken in terms of housing, we are allocating $2.5 billion so that the construction sector is the engine of reactivation; This, in addition to generating employment and economic development in many sectors, ends in improving access to Social Interest Housing. For that we have designed lines of mortgage credit, Constructor Credit and something new, credit to community organizations that are going to carry out the Cambia Mi Casa projects,” Velasco Campuzano pointed out.

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Together with the National Savings Fund and Findeter, the Ministry is working on a line of credit that promotes the purchase of housing in Colombia.

“We know that, if there is mortgage credit for families, the possibility is generated for projects to break even, for new works to begin”pointed out the minister, who insisted that housing policy has a very important component such as Mortgage credit and Builder Creditwhich are the two ends of a virtuous chain that ends in the construction of homes and the purchase of homes by families.

“The National Government is truly committed to the reactivation of the economy and considers that the construction sector is the spearhead for this reactivation,” added Velasco Campuzano.

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The FNA will reactivate the Builder Credit, in order to provide liquidity to the sector and promote the reactivation and growth of housing. The objective of this credit is the financing of VIS and VIP housing projects. A tool that will facilitate access to credit for builders is financing in UVR or pesos. The duration of the credit will be for the duration of the work or six more months, with an extension of up to 2 years and rates for UVR + 7.7% or in pesos at 18% will be handled; 100 basis points less than the market will be guaranteed.

The Fund will offer a VIP UVR + 0 preferential rate to families with income of up to 2 Current Legal Minimum Monthly Wages, who will be able to access a new VIP home (90 SMMLV) that allows them to improve their quality of life.

With the VIP preferential rate they will be able to finance up to 80% of the value of the property in a payment term of up to 30 years. Beneficiaries of the preferential rate who obtain 80% financing must have an initial payment of approximately $21,000,000. In this case, the monthly payment to be paid will be around $300,000 per month, including insurance; for a financing amount of $80,000,000. This preferential rate will be valid until June 30, 2024 or until reaching $500 billion in approved credits.

• Applies for new Priority Interest Housing (VIP), equivalent to up to 90 SMMLV.

• The application must be for UVR credits.

• Applicants must be affiliated with the FNA for layoffs or Contractual Voluntary Savings (AVC).

• Applicants cannot exceed income of 2 SMMLV.

• It can be applied jointly to this credit, as long as the applicants are affiliated with the FNA and do not exceed 2 SMMLV.

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In this regard, Laura Milena Roa Zeidán, president of the FNA, stated that “We will promote the Builder Credit lines and VIP UVR preferential rate, with the purpose of contributing to the fulfillment of the National Government’s goal of reducing the housing deficit in the country. We will continue to work in synergy with the Ministry to ensure that these financing options are available to those who need them most. “We are convinced that this joint effort will improve the quality of life of many Colombian families and, in turn, will promote the advancement of our nation.”

Findeter develops a rediscount credit line with a compensated rate for $1 billion, to finance 3 models: the acquisition of VIS and VIP housing through financial intermediaries such as cooperatives, housing improvements and working capital for VIS and VIP builders . This line will have a subsidy on the interest rate, making it more competitive. Through the cooperatives, low-income families will be able to access financing to purchase VIS and VIP homes.

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Findeter will also promote community organizations, which is why it will offer them its line of credit, so that they can use the resources as working capital, which will allow them to execute the housing improvements of Cambia Mi Casa, the National Government program, through the Minvivienda. , with which 400 thousand improvements are made to homes in precarious conditions.

VIS and VIP home builders will also be able to use the loans as working capital and debt replacement. This line of credit will benefit three types of actors: natural persons who meet the requirements established by the Ministry of Housing for the purchase of a social housing, community organizations that are interested in being part of the execution of the improvements of housing, and builders who develop VIS and VIP housing projects. The credits granted by Findeter, through financial intermediaries, will favor the reduction of the qualitative and quantitative housing deficit.

The president of Findeter, Juan Carlos Muñiz Pacheco, assured that “Thanks to the coordinated work with the Ministry, we are creating this new line that will encourage the construction and development of real estate projects aimed at the most needy population. “With these we will boost economic activity in the construction sector and generate employment opportunities in the different stages of the process.”.

In this way, the country is experiencing change, with a social housing policy aimed at benefiting the most vulnerable population, thus reducing inequality gaps, dignifying the lives of Colombians, boosting the economy through the housing sector. housing and building Total Peace.

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