Republic of Moldova Launches Enhanced 'First House Plus' Program for Homebuyers
Citizens of the Republic of Moldova who seek to acquire a residence will have the opportunity to do so starting from July 1st through a new government initiative named "First House Plus," succeeding the "First House" program launched six years ago.
Authorities are raising the maximum lending limit from one million lei to 2.5 million lei, alongside an increase in the state's guarantee coverage from 50 to 70 percent, particularly for those opting to procure residences outside Chisinau. This revised program is accessible to all citizens capable of demonstrating official income, as confirmed by Prime Minister Dorin Recean during a conference held on May 28th.
Recean announced that the official launch date for the "First House Plus" Program will be July 1st, 2024. This new program introduces five significant enhancements:
Expansion of the list of eligible beneficiaries: The revised program now extends eligibility to freelancers who can substantiate their official income, not limited to public servants.
Doubling of the credit limit: The maximum lending ceiling has been increased from one million lei to 2.5 million lei.
Extension of the credit term: Citizens can now access credits for up to 30 years compared to 25 years under the "First House" program.
Increase in the state's guarantee coverage: The state will now guarantee 70 percent of the credit amount for those procuring residences outside the capital. Additionally, the guarantee coverage will rise from 50 to 65 percent for immovable properties operational up to 10 years before the application submission.
Opportunity for existing beneficiaries to alter creditor and credit terms: Individuals who previously obtained dwellings through the "First House" program can now modify their creditor and credit conditions. Likewise, those who initially purchased dwellings up to 50 square meters can upgrade to larger real estate under the "First House Plus" Program.
The procedures for accessing credit through the new government initiative have been streamlined and digitised to facilitate a smoother process.
"The Government is committed to fostering an improved quality of life and better living conditions, enabling our citizens to continue building their families and futures here, in the Republic of Moldova," stated Prime Minister Dorin Recean. The Head of the Cabinet of Ministers elaborated on plans to privatise and allocate more land to construction companies within and outside the capital, aiming to alleviate pressure on housing prices.
It is important to note that the governmental program "First House" was initiated in March 2018, resulting in over 8,000 individuals securing dwellings to date. Ministry of Finance data reveals that among these beneficiaries, over 5,600 are families and over 2,500 are unmarried young individuals, with an average age of 31 years.
In its inaugural year, the "First House" project disbursed approximately 1,200 credits, escalating to over 2,700 credits in 2019. However, recent data indicates a notable decline in the program's appeal in 2023, with only 60 credits approved.
Translation by Iurie Tataru
