This Decree and Decree 1906, which it amends, mandate the formation of a Special Commission charged with reviewing all loan applications in Venezuela for the acquisition or construction of low-income housing filed in mortgage banks, financing institutions, or savings and loan institutions. Under the Decrees, builders of low-income housing complexes can receive up to 60% of the cost as a loan and buyers up to 75%. Loans will be granted to individual buyers only if they lack housing or their current housing does not meet minimum standards; they can make an initial payment of 15% of the selling price, and monthly payments on the loan do not exceed 30% of their salary. Loans are, in general, to be made at a 9% yearly interest rate. Repayment for loans made for the construction of rental units or the individual purchase of units is set at 20 years. Repayment for loans for the construction of units for sale is set between 18 and 36 months.
full text