The budget-funded employees who will apply to the state program “First House” will benefit from a special support instrument from the state. The instrument will become available in about two months, Minister of Finance Octavian Armasu stated in the program “Fabrika” on Publika TV channel, IPN reports.

“After the launch of the national program, we will also suggest a special support instrument for budget-funded employees who will apply to the program “First House”. We need about two months to finish it and will present it to the general public for debates,” stated the minister.

Octavian Armasu noted that the program is intended for legally employed persons aged between 18 and 45. “The program “First House” is designed to assist the Moldovan young people under 45 to purchase a home by taking out a home loan from the bank. We practically help the banks to offer this loan in more advantageous conditions,” he stated.

According to the minister, the state provides a home loan guarantee that is offered to commercial banks. The guarantee represents half of the value of the loan. “In this case, the bank requests security of a lower value and a smaller contribution from the applicant. Respectively, the state imposes particular rules as regards the interest rate and the commission,” added Octavian Armasu.

Within the program, the applicant should contribute 10% of the value of the home that this intends to buy. The home loan will be repayable in at most 25 years. The interest rate is slightly over 9%. The minister said the applicants must have an official family income that is two times larger than the interest rate. The parents can contribute to the family’s income.

The state program “First House” will become functional on March 26. From this date, the citizens can submit applications for financing to the banks that signed cooperation contracts with the Ministry of Finance and the Organization for the Development of Small and Medium-Sized Enterprises (ODIMM).