Subsidies and Benefits for First-Time Homebuyers in Uruguay
INGAR · · Financing
What this guide covers
At INGAR we see a pattern that repeats itself: families who want to buy their first home, run the numbers, and conclude they cannot afford it. But many times the problem is not that they cannot, but that they are unaware of the tools available to close the gap.
Uruguay has several government programs designed to help more families access their first house or apartment. Some reduce the required down payment, others subsidize part of the monthly installment, and others lower the effective cost of housing through tax exemptions. The problem is that the information is scattered across ANV, BHU, MVOT, and various decrees, and nobody puts it together in one place.
That is what we do here: a complete and up-to-date map of subsidies, programs, and benefits for first-time homebuyers in Uruguay, with concrete requirements, so you can evaluate which ones apply to your situation.
If you are not yet clear on the general purchase process, start with our step-by-step guide to buying an apartment in Uruguay. And to understand the total cost (not just the listing price), check out what costs are involved in buying a property.
The complete map: what exists and for whom
Before going into detail, it helps to see the overall picture. Each program targets a different profile:
| Program / Tool | Agency | Main benefit | For whom |
|---|---|---|---|
| FGCH (Guarantee Fund) | ANV + banks | Reduced down payment (down to 5%) | Families with income up to 100 UR |
| Primera Vivienda Program | ANV / BHU | Financing up to 95% | Buyers without prior homeownership |
| Yo Ahorro (BHU) | BHU | Preferential rate + higher financing | Savers with 12+ months of deposits |
| Yo Ahorro Joven | BHU | Closed to new enrollments since Dec 31, 2018 | No longer available |
| Installment subsidy | ANV / MVOT | Partial subsidy on the monthly installment | Low-income families |
| Housing cooperatives | MVOT / ANV | Loan up to 100% + subsidy | Households with income up to 60 UR |
| Promoted housing (Law 18.795) | ANV / MEF | ITP exemption and other tax benefits | Any buyer (new construction) |
| Rent-to-own | ANV | Access without a large down payment | Families with income between 25 and 75 UR |
Now let us go through each program.
1) FGCH: the Mortgage Credit Guarantee Fund
If we had to choose a single program to recommend to someone looking for their first home, this is it. And yet most buyers we work with do not know about it or do not fully understand how it works.
What it is
The FGCH is a fund managed by the ANV that acts as additional collateral for the bank. In practice, this allows the bank to lend you a higher percentage of the property's value, reducing the down payment you need.
The concrete benefit
- Used housing: you can finance up to 90% of the value (you only need 10% down, instead of the usual 20%).
- New housing (Law 18.795) and Entre Todos Program: you can finance up to 95% of the value (you only need 5% down).
This changes the math dramatically. For an apartment worth USD 120,000, going from needing USD 24,000 in savings to needing USD 12,000 (or USD 6,000 for new construction) can be the difference between buying this year or continuing to rent for five more.
Requirements
- Household income: up to 100 UR (Unidades Reajustables) net. At current values, that is approximately $175,000 net per month per household.
- Primary residence: the loan must be to purchase a single, permanent home in Uruguay.
- Price cap: the property cannot exceed the maximum values set by the ANV. In Montevideo, for used housing, the cap is around UI 1,036,000 (approximately USD 154,000). Caps are updated monthly on the ANV website.
- Free of liens: the property must be free of encumbrances.
- Installment below 35%: the loan installment cannot exceed 35% of the household's net income.
- Credit-eligible: you must be approved by one of the participating banks.
Participating banks
The FGCH works with five financial institutions: BHU, BBVA, HSBC, Santander, and Scotiabank. You can apply for your loan at any of them and use the FGCH as a complement. Each bank has its own rate and term conditions, so it is worth comparing. More on this in our guide to mortgage financing in Uruguay.
How to apply
- Choose the property (new or used) that meets the price caps.
- Go to one of the participating banks to qualify as a credit applicant.
- The bank, at the time of granting the loan, processes the FGCH guarantee with the ANV.
- You submit the required documentation (ID, proof of income, declaration of not owning another home).
The application can be initiated online through the ANV website or in person at the Agency's offices (Cerrito 400, Montevideo).
2) Primera Vivienda Program (BHU)
Launched within the 2025-2029 National Housing Plan, this program is one of the government's most recent efforts to facilitate access to a first home.
What it offers
- Financing of up to 95% of the property's value, reducing the standard 20% down payment to 5%.
- Channeled through the BHU.
- Expected to reach more than 4,000 households between 2025 and 2029.
How it works
The BHU issues periodic calls for applicants. The first call was for the purchase of 350 homes on the market. Interested parties must stay informed of the calls published on the BHU and ANV websites.
The difference from the FGCH is that this program operates through specific calls (it is not permanently available on demand), and may include additional selection criteria depending on the call.
3) Yo Ahorro: the most underrated BHU tool
If you are not yet ready to buy but know you want to in the next year or two, this program is for you. And very few people take advantage of it.
How it works
You open a "Yo Ahorro" account at the BHU and make monthly deposits for at least 12 months. In return, when you apply for your mortgage loan, you get access to:
- Preferential interest rate (lower than the BHU's standard rate).
- Higher financing percentage (you can finance up to 90% of the value, compared to the standard 80% without demonstrated prior savings).
Updated conditions
The BHU has relaxed the program's conditions:
- Initial deposit: 1,000 UI (previously 4,000 UI). At current values, approximately $6,500.
- Monthly deposits: minimum 500 UI (previously 750 UI). Approximately $3,250 per month.
- Minimum savings period: 12 consecutive months.
In other words: with a relatively modest monthly effort, after a year you have a savings track record that gives you concrete advantages when applying for your mortgage.
Yo Ahorro Joven (program closed)
Important: this program is no longer available. It was a variant created by Law 19.210 for young formal workers, but enrollment closed on December 31, 2018 and its benefit (a 30% subsidy on the saved balance) expired on September 17, 2020. If you are young and want to save for your first home, the active alternative is BHU's Yo Ahorro program.
Yo Ahorro Alquilando
Another interesting variant: if you are renting, you can demonstrate monthly payment capacity (because you already pay rent), and that is considered as background when applying for the loan.
4) Installment subsidy: direct help to pay the monthly amount
This is the least known program and may be the most impactful for low-to-middle-income families.
What it is
The ANV and MVOT can grant a partial subsidy on the monthly mortgage installment. It is not an exemption: the State pays a portion of your monthly installment.
Who it is for
Families who accessed housing through ANV programs (purchase agreements, cooperatives, etc.) and whose payment capacity is insufficient to cover the full installment. The subsidy is granted on a case-by-case basis, following a socioeconomic study of the household.
How to apply
- For purchase agreements: in person at the ANV's Installments desk (Cerrito 400, ground floor), Monday to Friday from 1 pm to 5 pm.
- For cooperatives: applied through the cooperative, with household income documentation (last 3 pay stubs, or last 6-12 months if income is variable or seasonal).
Renewal
The subsidy is not permanent: it is renewed periodically and the ANV may adjust it based on the evolution of household income.
5) Housing cooperatives: the collective route
Housing cooperatives are a Uruguayan institution with decades of history and concrete results. They are not for every profile, but if you fit, they can be the most accessible path to your first home.
How they work
A group of between 10 and 50 families organizes as a cooperative. The MVOT and ANV grant a loan that can cover up to 100% of the construction cost. The cooperative builds the homes, either through mutual aid (the members themselves work on the construction) or through prior savings (they contribute a percentage and hire the construction).
Two modalities
| Modality | Member contribution | Advantage | Requirement |
|---|---|---|---|
| Mutual aid | Hours of work on the construction | Lower final cost | Dedicating time (weekends, etc.) |
| Prior savings | 15% of the loan in financial contributions | No physical labor required | Savings capacity |
Requirements
- Reside in Uruguay, be over 18 years old.
- Net household income of up to 60 UR.
- Not owning another property.
Subsidies within cooperatives
Here is the interesting part: depending on household income, the subsidy can cover from 20% to 100% of the property's value:
- Income below 30 UR: subsidy of up to 100% of the property value (essentially, no installment or a minimum installment).
- Income between 30 and 60 UR: subsidy below 20%, with an installment proportional to payment capacity.
Timeline and reality
It is not a quick process. Forming the cooperative, finding land, obtaining the loan, and building can take between 3 and 5 years (sometimes more). But the end result is homeownership at a cost well below market.
In 2025, the MVOT allocated 750 spots for cooperative housing construction, and cooperatives that had participated in three previous rounds without being selected received direct allocation (202 homes).
6) Promoted housing (Law 18.795): not a subsidy, but it lowers the price
Technically it is not a subsidy, but a tax incentive scheme for developers who build social-interest housing. However, the practical effect for the buyer is a lower final price.
Benefits for the buyer
- ITP exemption (Impuesto a las Transmisiones Patrimoniales) on the first sale. That is a saving of approximately 2% on the actual property value.
- VAT exemption on income from construction, which allows the developer to offer a more competitive price.
- Wealth tax exemption on the property during the benefit period.
For an apartment worth USD 130,000 under Law 18.795, the ITP exemption alone saves you between USD 2,000 and USD 3,000 in closing costs. Combined with the fact that many promoted projects are eligible for FGCH with just 5% down, the combination can be very powerful.
We have a complete article on this topic: promoted housing (Law 18.795): tax benefits and how it applies.
Conditions
Not every new property qualifies under the scheme. The project must be declared promoted by the ANV and meet conditions of location, size, and price. Before buying, confirm with the developer and your notary that the project is effectively registered under Law 18.795.
7) Rent-to-own (ANV)
If you do not have significant savings but do have steady monthly payment capacity, this could be your entry point.
How it works
The ANV offers properties under a rent-to-own scheme. You pay a monthly rent and, after an established period, you can exercise the purchase option. Part of what you paid as rent counts toward the purchase price.
Who it is for
- Families with income between 25 and 75 UR.
- Without their own property.
- With demonstrable monthly payment capacity.
Availability
Available properties are published in the ANV's commercialization calls. There is not always stock available in all areas, so it requires ongoing monitoring.
8) Entre Todos Program
This is an ANV initiative that integrates several of the above mechanisms (FGCH, promoted housing, subsidies) into a package aimed at middle- and low-income families.
Key highlights
- Down payment from 5% of the property value.
- Financing of up to 95% through banks participating in the FGCH.
- Access to new homes built under Law 18.795.
In practice, it is the combination of FGCH + promoted housing + installment subsidy (where applicable), all managed as an integrated program.
BHU mortgage loan: general conditions
Regardless of the special programs, it is useful to know the base conditions at the BHU, which handles approximately 70% of the Uruguayan mortgage market:
| Condition | Details |
|---|---|
| Interest rate (TEA) | From 4.50% for home purchase; 3.75% applies only to the construction loan (varies by profile, term, and financing percentage) |
| Maximum term | 25 years |
| Standard financing | Up to 80-90% of value (depending on the program) |
| Currency | UI (Unidades Indexadas) |
| Minimum age | 18 years |
| Employment tenure | 6 months (public/retiree) or 2 years (private/self-employed) |
| Installment-to-income ratio | Up to 35% |
The savings benefit (Yo Ahorro) improves the rate and the financing percentage. Loans are granted in UI, meaning the installment adjusts for inflation. To understand the implications of each type of rate, see mortgage financing in Uruguay.
Comparative table: how much savings you need by program
For an apartment worth USD 120,000 (illustrative values):
| Scenario | Required savings | Amount in USD |
|---|---|---|
| No program, standard loan (80%) | 20% | USD 24,000 |
| FGCH + used housing (90%) | 10% | USD 12,000 |
| FGCH + new housing Law 18.795 (95%) | 5% | USD 6,000 |
| BHU Primera Vivienda Program (95%) | 5% | USD 6,000 |
| Mutual aid cooperative | Hours of labor | $0 in cash |
These amounts must be supplemented with closing costs (notary, taxes, registration), which can represent an additional 5-8%. More detail at property purchase costs.
Quick guide: which program suits your situation
| Your situation | Recommended program | Why |
|---|---|---|
| You have 10-20% saved and want to buy now | FGCH + BHU or private bank loan | Expands your options and may improve conditions |
| You have less than 10% saved | FGCH + new housing (Law 18.795) | You only need 5% down |
| You have no savings but stable income | Yo Ahorro (BHU) for 12 months, then FGCH | You build a track record and access better conditions |
| Low income (below 60 UR) | Housing cooperative | Financing up to 100% + possible full subsidy |
| Middle income, no savings, with payment capacity | Rent-to-own (ANV) | Entry without significant down payment |
| Young, just starting to work | Yo Ahorro (BHU) | Start building your path to homeownership |
General documentation you will need
Each program has its specific requirements, but there is a base set worth having ready:
- Valid national ID card for all household members.
- Last 3 pay stubs (6 if income is variable, 12 if seasonal).
- BPS certificate (contributions up to date).
- Proof of address.
- Sworn declaration of not owning another property.
- Marital status (to determine household composition).
- If self-employed or a business owner: last 2 years of IRPF or IRAE returns, DGI certificate, and accounting documentation.
Common mistakes we see
- Not checking before giving up. Many families assume they do not qualify without having asked. The FGCH, for example, has fairly broad income caps (100 UR). Before resigning yourself to keep renting, make the inquiry.
- Forgetting closing costs. The programs cover housing financing, but notarization, registration, and tax costs are your responsibility. Budget for them from the start.
- Not comparing banks. The FGCH operates with five banks. Rates and conditions vary. Request simulations from at least two or three before deciding.
- Waiting too long to start saving. If you know you want to buy in 1-2 years, open a Yo Ahorro account now. The 12 months go by fast and the rate difference is real.
- Not considering promoted housing. Sometimes a new apartment under Law 18.795 ends up being more accessible than a used one, because you combine ITP exemption + FGCH with just 5% down. Run the numbers before ruling it out.
Where to inquire and apply
| Agency | What you process there | Contact |
|---|---|---|
| ANV (Agencia Nacional de Vivienda) | FGCH, Entre Todos, subsidies, cooperatives, rent-to-own | www.anv.gub.uy / Cerrito 400, Montevideo |
| BHU (Banco Hipotecario del Uruguay) | Mortgage loans, Yo Ahorro, Primera Vivienda | www.bhu.com.uy / Tel: 1911 |
| MVOT (Ministerio de Vivienda) | Cooperatives, social housing programs | www.gub.uy/mvot |
Sources
- Agencia Nacional de Vivienda - FGCH (program and requirements):
https://www.anv.gub.uy/fgch - ANV - Subsidies (general information):
https://www.anv.gub.uy/subsidios - ANV - Commercialization calls:
https://www.anv.gub.uy/comercializaciones - BHU - Yo Ahorro (savings program):
https://www.bhu.com.uy/ahorro/yo-ahorro - BHU - Mortgage loans (general conditions):
https://www.bhu.com.uy - MVOT - Cooperatives Program:
https://www.gub.uy/ministerio-vivienda-ordenamiento-territorial/politicas-y-gestion/programa-cooperativas - IMPO - Law 18.795 (Promoted Housing):
https://www.impo.com.uy/bases/leyes/18795-2011 - Gub.uy - FGCH procedures:
https://www.gub.uy/tramites/fondo-garantia-creditos-hipotecarios