One of the biggest hurdles in buying a home with mortgage financing is often not the monthly repayments but the initial down payment. Traditionally, banks finance up to 80% of a property's value, requiring buyers to cover the remaining 20% plus additional costs from their savings. In 2026, the Valencian Community government took decisive action to address this challenge.
The regional authorities enhanced the guarantee program offered by the Valencian Institute of Finance (IVF), allowing young residents and adults under 45 to secure mortgage loans covering 100% of their home's value. Juanfran Pérez Llorca, the head of government, announced an increase in the regional guarantee from 15% to 20% of the property value, enabling banks to finance the entire purchase price.
Program Overview
The key features of the program are:
- Banks provide 100% financing of the property value;
- The regional government guarantees up to 20% of the home’s value;
- No down payment is required from the buyer;
- The program is free for both beneficiaries and participating banks.
This initiative applies to both newly built and resale homes, including properties available on the open market as well as those developed under public social housing and private construction schemes. However, the property must serve as the buyer’s permanent residence. Additionally, the maximum eligible property price has been raised to €311,000, broadening the scope of homes covered by the program.
Eligibility Criteria for the IVF Guarantee
Applicants seeking the IVF guarantee for home purchases in the provinces of Alicante, Valencia, or Castellón must meet the following conditions:
- Be between 18 and 45 years old at the time of application. This age limit is waived if one of the buyers resided in a municipality affected by the DANA natural disaster on October 29, 2024.
- Demonstrate continuous and uninterrupted residence in the Valencian Community for the two years prior to application.
- Not own another home in Spain, except in cases where the ownership share is less than 50%, or where the applicant was not granted rights to the family home after a divorce, or if a third party holds the right of use.
- Hold Spanish citizenship, citizenship of another EU country, or legal residence authorization if a third-country national.
- Possess a financing offer from a financial institution participating in the program.
- Have no outstanding debts to the Valencian Community government, except for deferred or suspended payments.
Application Process
The application process begins with obtaining a mortgage offer from a participating bank. Subsequently, applicants submit their application and supporting documents through the IVF electronic platform, where eligibility is verified. Upon approval, the guarantee is granted, and notifications are sent to both the applicant and the bank.
Applications can be submitted following the official publication of the program in the Diari Oficial de la Generalitat Valenciana.
Important Considerations
While the IVF guarantee facilitates access to full property financing, it does not cover associated costs such as taxes, notary fees, or registration expenses. Moreover, the guarantee does not ensure automatic loan approval, as banks retain the discretion to approve mortgage applications based on the buyer’s financial solvency.
In an environment of rising housing prices and growing difficulty in saving for a down payment, this program effectively removes a significant barrier to homeownership. For eligible buyers, it could be the decisive factor between continuing to rent and purchasing their own home.