The main obstacle to buying a home with mortgage financing is usually not the monthly payment, but the down payment. Banks typically finance up to 80% of the property value, which means the buyer must have savings covering the remaining 20% plus funds for related expenses. In 2026, the government of the Valencian Community decided to intervene at this key point.
The regional authorities expanded the guarantee program of the Valencian Institute of Finance (IVF) so that young people and adults under the age of 45 can obtain mortgage loans for 100% of the home’s value. This was announced by the head of government, Juanfran Pérez Llorca, who confirmed the increase of the regional guarantee from 15% to 20% of the home’s value, allowing banks to finance the full amount.
How the program works
That is:
- the bank provides 100% of the property value;
- the regional government guarantees up to 20%;
- the buyer does not need to make a down payment;
- the program is free of charge for both the beneficiary and the participating bank.
The program allows the purchase of both new and resale homes, as well as homes offered on the open market or built under public social housing and private construction programs. However, the property must be intended as a permanent residence. In addition, the maximum permitted price has been increased to €311,000, which broadens the range of properties that can be included in the program.
Who can receive the IVF guarantee
To obtain an IVF guarantee for the purchase of a home in the provinces of Alicante, Valencia or Castellón, applicants must meet the following conditions:
- At the time of application, the applicant must be between 18 and 45 years old inclusive. The age limit does not apply if one of the buyers lived in a municipality affected by the DANA natural disaster on October 29, 2024.
- Continuous and uninterrupted residence in the Valencian Community must be proven for the two years preceding the application.
- The applicant must not own another home in Spain, except in cases where the ownership share is less than 50%; or after a divorce the applicant was not granted the right to use the family home; or a third party has the right of use.
- The applicant must have Spanish citizenship, citizenship of another EU country, or legal residence authorization in the case of third-country nationals.
- The applicant must have a financing offer issued by a financial institution participating in the program.
- The applicant must not have outstanding debts to the government of the Valencian Community, except for deferred or suspended payments.
How to apply
The process for obtaining this support begins not at the bank, but at IVF. First, the interested person obtains a mortgage offer from a participating institution. Then an application is submitted together with the documents on the IVF electronic website, where compliance with all requirements is verified. If the application is approved, a decision granting the guarantee is issued, and both the applicant and the selected bank are notified.
Applications may be submitted after the official publication in the Diari Oficial de la Generalitat Valenciana.
What is important to take into account
Although the guarantee makes it possible to access 100% of the property value, it is important to bear in mind that it does not cover associated expenses (taxes, notary, registration), does not guarantee automatic loan approval (the bank must approve the transaction), and does not replace the buyer’s financial solvency.
In a context of rising housing prices and the difficulty of saving even a 20% down payment, the program removes the main barrier to access. For those who meet the requirements, this could mean the difference between continuing to pay rent and buying a home.
