Circular No. 1262 — Housing Finance System (SFH) — Home Financing Rules

CIRCULAR NO. 001262

To
Real Estate Credit Societies, Savings and Loan Associations, and Savings Banks

We communicate that the Board of Directors of the Central Bank, in view of the provisions of item XXII of Resolution No. 1,361, of July 30, 1987, has decided to establish the following points regarding housing financing granted by financial agents within the scope of the Housing Finance System (SFH):

a) Financing may only be granted to applicants who do not hold, in any part of the country, other financing under the conditions established for the aforementioned System;

b) Financing may not be granted to applicants who are owners or promisees of residential property in their place of domicile, understood as the place where a person establishes or intends to establish residence with the intention of permanence.

2. The provisions of the preceding item shall not apply if, in the contract regarding the new acquisition, there is a provision, in a penal nature, that the failure to alienate the previous residential property within the maximum non-extendable period of 180 (one hundred and eighty) days will imply breach of the contract, with the consequent accelerated maturity of the debt, and also the non-coverage of the Wage Variation Compensation Fund (FCVS) - if applicable - and the insurance related to the second acquisition.

3. This Circular shall enter into force on the date of its publication, with items 12 and 14 of Circular No. 1,214, of August 4, 1987, being revoked.

Brasília-DF, December 4, 1987

Luiz Aranha Corrêa do Lago
Director