The Housing Leasing Subsidy DS120, promoted by the Ministry of Housing and Urban Planning (Minvu), it is presented as a concrete option for those who pay rent and seek access to permanent housing. The program allows you to purchase a house or apartment—new or used— through a lease contract with a promise of sale, with a maximum value of up to 2,000 UF, or 2,200 UF in extreme areas of the country.
Its purpose is to facilitate the path to ownership, using the same monthly lease payment as part of the financing of the property.
How the DS120 Housing Leasing Subsidy operates
The initiative is managed through a real estate leasing company, which administers both the subsidy and the beneficiary’s personal contributions.
As detailed by the Housing and Urbanization Service (Serviu), “The property is paid for with the subsidy and with the part of the monthly contribution that is used to calculate the price of the property.”
The monthly payment considers both the value of the lease and the fraction allocated to the purchase of the home, in addition to other charges established in the contract, such as insurance.
When the sum between subsidy and personal contributions equals the total agreed price, “the beneficiary and the real estate company will sign a purchase and sale contract so that the property is transferred to the buyer,” the organism requires.
Who can access the DS120 Subsidy
This benefit is designed for people with the ability to pay rent, but who do not have the savings required to qualify for other housing programs or mortgage loans.
Those who may apply meet the following conditions:
- Be of legal age.
- Be registered in the Serviu Single Registry, a procedure that is carried out by presenting the identity card – original and photocopy – and which provides a registration card.
- Not being owners of a home, both the applicant and his or her spouse.
- Not having previously received subsidies or housing from the State.
- Have a savings account for leasing with a promise to buy and sell (known as a “housing leasing savings account”).
- Do not have more than one lease contract with a current promise of sale.
- In the case of marriages, only one of the spouses can register.
Application for DS120 subsidy
Unlike other housing subsidies, The DS120 does not require a minimum savings amount. However, Real estate agencies that manage this type of contracts can request an initial contribution, Therefore, it is recommended to have your own resources to facilitate the operation.
