Financing of properties for sale: understand the different options


When presenting properties for sale to your customers, it is always important to be aware of everything that includes negotiation. It is certain that they will have doubts about some of the steps of buying a home and you, as a broker, need to know how to help. After all, this can interfere with the customer’s judgment of the quality of their service, and this is directly linked to the conclusion of the sale of a property.

The issues tend to vary from person to person, but financing a property is still, without a doubt, a great mystery for many people who are looking for their own home. Therefore, today you will learn a little more about the real estate financing options that are on the market and their differences. That way it will be easier to help your customers, gain their trust and, thus, increase your chances of closing the deal.

What is real estate financing?

Real estate financing is a type of credit intended for the purchase, construction or renovation of properties or lots, both commercial and residential. It can be granted by several financial institutions, with Caixa Econômica Federal (CEF) responsible for around 70% of all credit concessions to finance properties for sale.

Financing modalities for properties for sale and their differences

There are currently two systems in Brazil that govern a large part of the financing of real estate for sale: the SFH (Housing Finance System) and the SFI (Real Estate Financing System). Both are modalities created and developed by the Federal Government and differ, basically, by the pre-established requirements for their use.

This means that, depending on the profile of the chosen property and the financial institution’s evaluation in relation to your profile, you will fit into one of them instead of choosing your preference. Understand in more detail what this means:

SFH: Housing

Finance System the Housing Finance System is the most widely used option for buying real estate for sale. This is because it uses the Guarantee Fund (FGTS) and the Savings as the main source of financial resources for granting credit for the purchase of real estate. For this reason, it is only possible to use this system through the contracting of financing by Caixa Econômica Federal – which justifies the leadership of this institution in the segment.

However, there are rules that govern the use of SFH. In addition to the issues related to proof of income, the possibility of paying the installments of the financing, and the Credit Score of your client, there are also items related to the property profile, among others.

In order for your client to obtain real estate credit through SFH, it is necessary to inform him that:

  • He will bear interest rates. In 2016, the percentage determined reaches almost 12 per year;
  • The value of the properties for sale chosen in your search cannot exceed R $ 750 thousand in the capitals and metropolitan regions of Minas Gerais and Rio de Janeiro, some locations in São Paulo and the Federal District. Otherwise, the financing of the chosen house will be denied because it includes requirements from another system;
  • For the other locations, the value of the property to be financed has a ceiling of R $ 650 thousand;
  • In 2016 it was defined that the credit granted can finance up to 80% for civil servants and 70% for employees, according to the SAC table. When the choice is made by the Price table, the percentage of both falls to 40% of the property’s value;
  • You must have the entrance fee to pay in cash;
  • The monthly installment that will be paid by your customer cannot exceed 30% of the monthly income received by him;
  • The purchase is made exclusively by Individuals.

SFI: Financial System Property

Already SFI is the system designed to meet specific demands unmet by SFH. Check out what is included for the purchase of properties for sale in your inventory:

  • Your customer can choose the property in the amount he wants, without a predefined ceiling;
  • The committed income for the payment of monthly fees has no limit;
  • It is not allowed to withdraw FGTS to enter the property or amortize the installments;
  • There is no predefined percentage for interest rates;
  • There are no restrictions or consensus as to the amount charged for the administration of the financing by the financial institution;
  • Both Individuals and Legal Entities can use the system.

Were you able to understand the difference between the types of real estate financing to guide your customers who are looking for properties for sale? If you have any questions, take the space for comments below and share it. It can be a topic for an upcoming meeting here on the blog!