Brazil Launches Faixa 4 in Minha Casa Minha Vida for R$ 8,000–R$ 12,000 Incomes, Up to R$ 500,000 Homes in May 2025
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Brazil's federal government has approved the creation of 'Faixa 4' in the Minha Casa, Minha Vida (MCMV) housing program, targeting middle-class families with monthly incomes between R$ 8,000 and R$ 12,000. Faixa 4 will allow these families to finance homes valued up to R$ 500,000, with repayment terms of up to 420 months (35 years) and an annual interest rate of 10.5%. The financing permits the use of FGTS (Fundo de Garantia do Tempo de Serviço) resources but does not include government subsidies. The new category is expected to launch in May 2025.
Income thresholds for existing categories have also been updated: Faixa 1 now covers families earning up to R$ 2,850 per month, Faixa 2 up to R$ 4,700, and Faixa 3 up to R$ 8,600. The ceiling for Faixa 3 financing is R$ 350,000, with interest rates between 7.66% and 8.16% per year. In municipalities with up to 100,000 inhabitants, the maximum property value for financing has increased to between R$ 210,000 and R$ 230,000.
The government expects more than 120,000 families to benefit from Faixa 4 and about 100,000 families from the adjustments to the other categories, with a total estimated reach of 240,000 people in 2025. The changes are also intended to support the construction sector, which grew by 5.1% in the latest period.
Additionally, families in Faixas 1 and 2 can now finance homes at the Faixa 3 ceiling, though without discounts. Beneficiaries of the BPC (Benefício de Prestação Continuada) and Bolsa Família programs remain eligible for full government housing subsidies, with no monthly payments required.