Government studies action for self-employed to participate in Minha Casa, Minha Vida

To integrate the housing program, the worker needs to prove the income he receives monthly. However, for those who are self-employed, this task is usually more complicated.

Collectors of recyclable materials, app drivers and street vendors are among the categories that may have difficulty proving income. In Brazil, it is estimated that 38.8 million people were in informality in 2022which represented 39.6% of the economically active population.

“The National Housing Secretariat team, through Secretary Ailton Madureira, has carried out this study with Caixa Econômica Federal so that we can present a proposal to the Civil House, to President Lula, to serve this public. These are the people who have income, but cannot prove this income. It’s the Uber driver, it’s the recyclable material picker, (they are) the self-employed who end up not having a formal contract and can’t prove it”, explained Jader Filho in an interview with Brazil Agency.

pending ordinances

He added that the theme is already mature in the Ministry of Cities, but mentioned that it is still necessary to advance first with other pending ordinances that are necessary to execute Minha Casa, Minha Vida. Jader recalled that the ministry was extinguished in the previous government, which would be making the work difficult. “We took the ministry from scratch”, he justified.

The housing deficit in Brazil was 5.876 million homes in 2019, according to a study by João Pinheiro Foundation – FJP. This is the most up-to-date data on the housing deficit in the country. According to the Ministry of Cities, a new study on the subject was requested from the FJP.

The new Minha Casa, Minha Vida came into force at the beginning of July this year with the sanction of law of the program by President Luiz Inácio Lula da Silva.

Income Ranges

Minha Casa, Minha Vida depends on family income. Level 1 of the program includes families with a monthly income of up to R$2,640. Level 2 covers families with income between R$2,640 and R$4,400; and Group 3, involves families with a monthly income between R$4,400 and R$8,000.

Values

Regarding the value of the property, the maximum financing is R$ 170,000 for developments aimed at Level 1; R$ 264 thousand for Level 2; and R$ 350,000 for Level 3.

In the case of the rural MCMV, the maximum value for new housing increased from R$55,000 to R$75,000. Financing for improving a home rose from R$23,000 to R$40,000.

Interest rates vary according to region and income, ranging from 4% per annum to 5.5% in the case of Tier 1; from 4.75% to 7% for Band 2; and from 7.66% to 8.16% for Range 3.

Families can also get discounts on the acquisition of real estate. They are offered to workers with resources from the Severance Indemnity Fund (FGTS) of R$55,000, restricted to Tier 1 beneficiaries.

Monthly installments paid by Tier 1 beneficiaries will be proportional to income, with a minimum amount of R$80 over a period of five years. Click here for more information.