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The Legislative Assembly approved, with 57 votes, the extension of the sovereign guarantee granted by the State to the Fondo Social para la Vivienda (FSV), with the aim of backing a US$103.7 million loan from the Central American Bank for Economic Integration (CABEI). The funds are intended to strengthen housing finance programs and facilitate access to housing for more Salvadoran families.
During the 132nd plenary session, it was explained that the loan amount increased from US$53.7 million to US$103.7 million, representing an increase of US$50 million. The extension of the state guarantee ensures the FSV can meet its financial obligations to the regional organization and provides the resources needed to continue advancing its housing programs.
A sovereign guarantee is financial backing through which the government commits to fulfilling certain obligations of a public institution if that institution is unable to do so. In this case, the extension of the guarantee allows for the financing granted by CABEI to the FSV to be backed, with the aim of facilitating home purchases and helping to reduce the country’s housing shortage.
Five programs to facilitate access to housing
The funds will allow the FSV to continue offering loans through five programs targeting different segments of the population, including young people, female heads of household, and salvadorans living abroad. Financing terms vary depending on the program, the applicants’ income, and the characteristics of the home they wish to purchase.
One of the programs is Vivienda Nueva, which offers financing for home purchases with repayment terms of up to 30 years for workers in the formal sector and up to 25 years for people with variable incomes. This option aims to facilitate home ownership through installments spread out over an extended period.
Casa Joven is aimed at people between the ages of 18 and 35 who wish to purchase new or used homes. The program offers financing of up to US$100,000 and repayment terms of up to 30 years. Meanwhile, Vivienda Cercana is designed for salvadorans living abroad and individuals who receive income from other countries, with financing terms of up to 25 years.
The institution also offers Casa Mujer, aimed at single women, widows, or women in vulnerable situations, between the ages of 26 and 50, who are looking to purchase a new or used home. In addition to this option is Vivienda en Altura, which provides financing for new or used properties located in high-rise buildings, with loans of up to US$100,000 and terms of up to 30 years.
With the expansion of the sovereign guarantee, state-backed financing now totals US$103.7 million. The initiative aims to strengthen the FSV’s capacity to maintain its housing credit lines and expand home-purchase opportunities. Effective access to these resources will depend on the conditions of each program and applicants’ compliance with the established requirements.
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