The Ministry of Cities announced a new line of credit aimed at renovating housing in urban areas for families with a gross monthly income of up to R$9,600. The initiative is part of the Minha Casa, Minha Vida Program and provides financing between R$5,000 and R$30,000.
Ordinance No. 1,177/2025 that regulates the measure was published in an extra edition of Official Gazette of the Union this Thursday (9).
“A citizen who wants to renovate his house, build a garage, a bedroom, a bathroom, that citizen has the right to go to the bank and get a loan with the cheapest interest possible. Because the government alone, neither the mayor nor the state, can build the houses”, said the president, in May, during an event with mayors in Brasília.
This Friday (10), Lula also announces the new real estate credit modelwhich restructures the use of savings to leverage housing credit, especially for the middle class.
Rules for renovations
The credit line aims to promote the right to adequate housing and address and combat the inadequacy of homes in Brazil. Housing improvement interventions must be aimed at solving problems of health, safety, habitability, accessibility, sustainability and comfort.
The measure provides for reduced interest and payment terms of 24 to 60 months.
The program is divided into two tracks:
– Improvement Band 1, for incomes of up to R$3,200, with nominal interest of 1.17% per month;
– Improvement Band 2, for incomes between R$3,200.01 and R$9.6 thousand, with a rate of 1.95% per month.
The benefit amount will be limited to 25% of family income, and each beneficiary will only be able to take out one financing at a time.
The program is aimed at residents in urban areas, capitals, municipalities with more than 300 thousand inhabitants or in population arrangements above this number. The property must be intended for residential use, with mixed-use properties being permitted.
The resources can be used for construction materials, labor, preparation of technical projects and guidance and monitoring services for works. Beneficiaries must prove the implementation of the interventions.
The credit will be operated by Caixa Econômica Federal, with partial guarantee from the Popular Housing Guarantee Fund (FGHab) for Band 1 operations. States and municipalities will be able to provide financial compensation to expand the reach of the federal government’s initiative.
