The dream of buying a first home often clashes with a harsh reality: Italian banks generally finance up to 80% of a property’s value. The remaining 20%, combined with notary fees and taxes, must be covered by the buyer’s savings. However, the Italian government has introduced specific measures to help those who lack this initial cash on hand obtain mortgages covering up to 100% of the property’s value.
The First-Time Homebuyer Mortgage Guarantee Fund (Consap)
The main tool in Italy is the Guarantee Fund managed by Consap (Concessionaria Servizi Assicurativi Pubblici). This fund provides the bank with a government guarantee that replaces the down payment the buyer would otherwise have to make.
While the fund normally guarantees 50% of the principal, for certain priority categories the government guarantee rises to 80%. This “safety net” reassures banks, which are then willing to issue mortgages covering the entire purchase price (100% mortgage).
Who is eligible for the enhanced 80% guarantee?
To qualify for the enhanced guarantee and secure a mortgage with no down payment, you must fall into one of the so-called priority categories and meet specific financial and property-related requirements:
- Young people under 36: individuals who have not yet turned 36 in the year the deed of sale is executed.
- Young couples: married or cohabiting for at least two years (where at least one partner is under 36).
- Single parents: single-parent households with dependent minor children.
- Tenants of housing units owned by autonomous public housing agencies
- Families with more than two children under the age of 21 (check the ISEE limit for children)
- ISEE Requirement: an ISEE not exceeding 40,000 euros per year (the limit may vary based on annual budget laws).
- Property restrictions: the requested mortgage must not exceed 250,000 euros, and the property must not fall under the luxury cadastral categories (A/1, A/8, and A/9).
How much money do you need to have saved?
Although you do not have to pay a 20% down payment on the home (e.g., 40,000 euros on a 200,000-euro home), you still need some initial cash (estimated between 5,000 and 10,000 euros) to cover the notary, the real estate agency (if applicable), and government taxes.
Alternatives and Tax Incentives
In addition to the Consap Fund, the Italian system offers further support to reduce initial costs:
- First-Home Tax Benefits: First-time homebuyers benefit from a reduced registration tax (from 9% to 2%) and fixed-rate mortgage and cadastral taxes.
- Rent-to-Buy: a contract that allows you to move into a home immediately by paying rent, a portion of which is set aside as a down payment toward the future purchase. It is an excellent private alternative for those who do not qualify for the Consap Fund but want to start “paying” for their home.
