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  • Writer's pictureAlejandro Betancourt

¿HOW TO BUY A HOME IN BOGOTÁ WITH YOUR RENTAL PAYMENTS?

If you are currently paying very high rental payments or even higher than the minimum wage in the city of Bogotá, your dream of owning your own home probably seems far away or difficult to achieve.

According to figures from FEDELONJAS, 44% of Colombian families live in rented housing. Additionally, the average price for a family home according to stratum is: $1.4 million for stratum 3; $2.2 million for stratum 4 and $2.6 million for stratum 5.

In response to this scenario, the Fondo Nacional del Ahorro (FNA) has launched the "Ahorra Tu Arriendo" (Save Your Lease) program so that thousands of savers, having their retirement payments in this entity, can become homeowners.

 

1. WHAT IS THE SAVE YOUR RENT (AHORRA TU ARRIENDO) PROGRAM?

This is a special benefit for Colombians who have their retirement payments in the Fondo Nacional del Ahorro (FNA). Through this program, they can obtain the benefit of financing 100% of a new home or 95% of a used house or apartment no older than 5 years.

This program does not require a down payment for new housing, and in the case of used housing, only 5% of its value is required. In this sense, if the member wishes, he/she may pay a percentage (down payment) on the value of the new home, according to his/her economic capacity", as an optional alternative.

On the other hand, the terms for financing the housing can be up to 30 years.

Other Benefits

  • With financing of up to 30 years, the buyer is offered a higher credit amount and lower installment value (liquidity).

  • The costs of the credit study, appraisal and title study are assumed by the FNA, providing significant additional savings to the buyer.

  • Unemployment insurance (the only credit program that includes it), with coverage of up to 12 monthly payments in case of loss of employment (product conditions apply). In addition, coverage for:

  • Debtor group life insurance

  • Debtor group fire insurance

You can take advantage of the national government subsidy program, Mi Casa Ya:

"National Government program that facilitates the purchase of NEW and URBAN housing, in any municipality of the country, to households with total income up to $2,950,868 (4 smmlv).

Through this program a monetary subsidy is granted for the down payment, which is subject to the total income of the household, and a coverage to the interest rate of the mortgage loan that the household must make to buy their home, which is subject to the total value of the home".

If the income is between 2 and 4 minimum wages, the subsidy is 20 minimum monthly wages in force. Income as of 2017 between $1,475,434 and $2,950,868 The subsidy is $14,754,340.

Rate coverage, Mi Casa Ya program: Mi Casa Ya:

  • If the new home is between $51,640,190 and $99,591,795 (70 to 135 minimum wages), the coverage will be 4 points.

  • If the home is between $99,591,795 and $365,169,915 (between 135 and 435 minimum monthly salaries), the coverage will be 2.5 points.

Fees (interest rates)

Source: FNA

In addition, I suggest you consult this new benefit in subsidies beneficio en subsidios to lower the credit rate by 2.5 EA points. Check its applicability with FNA's advisors.

2. WHAT ARE THE CONDITIONS TO ACCESS THE PROGRAM?

The main requirement is to be affiliated to the Fondo Nacional del Ahorro or to transfer your retirements there.

As for income, it must be between two and six minimum monthly salaries, that is, people earning between $1'475,434 and $4'426,302 pesos, according to the figures in force for 2017.

Other Conditions.


  • Applies for new or used housing of 5 years (horizontal property).

  • UVR Systems

  • Type of housing VIS and NO VIS

  • Term: 30 years in UVR

  • Down payment for new housing: 0%.

  • Down payment for used housing: 5%.

  • Purchase option: 0%.

3. HOW TO APPLY ?

To apply you only need to fill out a form and submit the documents directly to the Fondo Nacional del Ahorro or you can request more information on their website:

What documents you should have on hand:

If you are an employee.

  • Fully completed single credit application form.

  • Photocopy of your identity document

  • Certificate of Income and Retentions of the last year and photocopy of the Income Tax Return or Letter of Non-declarant as applicable.

  • Labor certification of no more than 60 days

  • Pay/withdrawal/pension statements for the last three months.

  • Certification of the monthly assignment of the position in property for the affiliates that are in charge.

If you are independent with total income from 0 to 2 SMMLV.

  • Fully completed single credit application form.

  • Photocopy of the identity document

  • Certificate of Income and Withholdings for the last year and photocopy of the Income Tax Return or Letter of Non-declaration, as applicable.

  • Communication from the affiliate indicating in detail the activity carried out and the monthly income.

  • Rut or Chamber of Commerce for those who have formally constituted commercial establishments.

If you are independent with total income over 2 SMMLV.

  • Fully completed single credit application form.

  • Photocopy of the identity document

  • Certificate of Income and Retentions of the last year and photocopy of the Income Tax Return or Letter of Non-declarant as applicable.

  • Rut or Chamber of Commerce for those who have formally constituted commercial establishments.

  • Bank statements in the name of the applicant, of the last three months to the date of filing of the credit where the income is reflected or Supporting documents of the activity developed as independent.

If you are a Pensioner.

  • Fully completed single credit application form.

  • Photocopy of the identity document

  • Certificate of Income and Retentions of the last year and photocopy of the Income Tax Return or? Letter of Non-declarant as applicable

  • Payment/withdrawal/pension statements for the last three months.

If you work for services rendered by public entities.

  • Fully completed single credit application form.

  • Photocopy of the identity document

  • Certificate of Income and Retentions of the last year and photocopy of the Income Tax Return or Letter of Non-declarant as applicable.

  • Service contract in force

  • Bank statements in the applicant's name for the last three months as of the date the loan is filed, showing the income.

If you work with private entities and your monthly contract does not exceed 2 SMLMV.

  • Fully completed single credit application form.

  • Photocopy of the identity document

  • Certificate of Income and Withholdings of the last year and photocopy of the Income Tax Return or Letter of Non-declarant as applicable.

  • Payment/withdrawal/pension statements for the last three months.

  • Current service contract.

If you work with private entities and your monthly contract exceeds 2 SMLMV.

  • Fully completed single credit application form.

  • Photocopy of the identity document.

  • Certificate of Income and Withholdings of the last year and photocopy of the Income Tax Return or Letter of Non-declarant as applicable.

  • Service contract in force.

  • Bank statements in the applicant's name for the last three months as of the date the loan is filed, showing the income.

4. IN CONCLUSION.

If you are thinking of buying new housing or less than 5 years of use for a value of less than $365 million pesos, and your income does not exceed $4,426,302 pesos in 2017 (six minimum wages) the opportunity to access significant benefits in interest rates, liquidity, savings for other concepts in home purchase and use the money from your rent to pay for your own home is served!

Do you want to find your ideal home? Let me advise you professionally throughout the process and bring you even closer to your goal of becoming a homeowner in Bogota, Schedule your free consultation HERE.

If you find this article useful, do not hesitate to share it on your social networks, as well as enrich it with your comments by contributing to our community of readers!

ALEJANDRO BETANCOURT

Real Estate Broker.

BIBLIOGRAFIA.

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