A loan for your first home: what the AFD offers
Paraguay’s Development Finance Agency (AFD) channels mortgage loans through banks, finance companies and cooperatives. These are the differences between its three housing lines.
How it works
The AFD doesn’t lend directly: it provides the funds, and the financial institutions (authorized banks, finance companies and cooperatives) assess your case and approve the loan. So the first step is to go to your bank and ask about the lines funded by the AFD.
The three lines
Primera Vivienda (First Home)
For people who don’t own a built home in their name (or in the name of their spouse or partner). Household income can reach eight minimum wages and the term up to 30 years, depending on the guarantee.
Che Róga Porã
Also for a first home, with household incomes of one to nine minimum wages. It requires a valid ID, being between 18 and 75 years old and verifiable income.
Mi Casa (My Home)
It doesn’t have to be your first home: it can finance up to two homes per person, with a cap of PYG 1,500 million per home and terms of up to 30 years with a trust guarantee.
How much you can pay per month
The installment can’t exceed 40 % of household income. If you are self-employed, the institution looks at your net disposable income. Before visiting the bank, add up your verifiable income and work out that 40 %: that is the number that will determine how much you can borrow.
It also works for off-plan purchases
Primera Vivienda and Che Róga Porã finance finished homes, homes under construction or pre-sale. You can start with the developer’s in-house financing during construction and, at delivery, cover the balance with a mortgage loan.
A tax benefit
For first-home loans funded by the AFD, VAT on the interest, fees and charges of the financing is 5 % (Decree 3476/2020).
Rates and conditions change: always confirm them with the financial institution.
Sources (in Spanish)
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