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Lula to Launch R$40 Billion Home-Repair Credit Program on Monday

The initiative directs Fundo Social resources alongside Caixa LCI funding to low- and middle-income homeowners for essential repairs under clear eligibility rules.

Overview

  • The Reforma Casa Brasil program will be unveiled on October 20 at 3:30 p.m. at the Palácio do Planalto, according to the presidency’s communications office.
  • Total credit reaches R$40 billion, with R$30 billion subsidized via the Fundo Social for families earning up to R$9,600 and R$10 billion from Caixa through LCIs for higher-income borrowers at market rates.
  • Families earning up to R$9,600 may borrow up to R$30,000 for upgrades to existing urban homes, targeting owners facing structural or adequacy issues.
  • Operational rules limit installments to 25% of household income, set repayment between 24 and 60 months, allow only one active loan per household, and permit spending on materials, labor, project contracting and technical guidance.
  • Interest rates are set at 1.17% per month for incomes up to R$3,200 and 1.95% per month for R$3,200.01 to R$9,600, with FGHab backing the lowest-income segment; the initial goal is 1.5 million contracts.