Circular No. 1178 - SFH - Maximum Financing Term - Maximum Level of Commitment of Gross Family Income - FGTS Resources - Norms on Housing Financing and Refinancing of the Housing Financial System (SFH) with FGTS Resources

CIRCULAR NO. 001178

We communicate that the Board of Directors of the Central Bank, having regard to the provisions of item IV of Resolution No. 1,310, of 24.04.87, has decided that the sub-items "d", "h", "j" and "n" of item 1 of Circular No. 1,161, of 24.04.87, shall enter into force with the following wording:

"d) in cases of financing carried out with the participation of Promoter Agents without profit motive, financing for the final borrower equivalent to up to 100% (one hundred percent) of the housing investment shall be admitted, observing the limits established in specific norms;

h) the maximum effective interest rate of 12% (twelve percent) for financing to final borrowers, as referred to in item V of Resolution No. 1,221, of 24.11.86, is applicable to any amount of financing granted, observing the provisions in specific norms;

j) the granting of financing is linked to proof that the first monthly installment, including amortization, interest, insurance premiums and fees, shall not exceed 30% (thirty percent), for financing up to 3,500 (three thousand five hundred) OTN, or 35% (thirty-five percent) for financing exceeding 3,500 (three thousand five hundred) OTN, of gross family income;

n) the financing term shall be determined based on the financed value, expressed in OTN, in accordance with the table below:

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Financed Value Maximum Term
------ up to 530 OTN 25 years from 531 to 2500 OTN 20 years from 2501 to 3500 OTN 16 years from 3501 to 5000 OTN 15 years ------"

2. Housing financing granted by agents of the Brazilian Savings and Loan System (SBPE), under the conditions of sub-item "a" of item II of Resolution No. 1,221, of 24.11.86, that exceed the unit value of 3,500 OTN, shall not represent more than 50% (fifty percent) of the resources mentioned in the aforementioned sub-item, that is, 25% (twenty-five percent) of the resources captured in savings deposits.

Brasília-DF, June 4, 1987

Luiz Aranha Corrêa do Lago
Director