Rent-to-Own Path to Homeownership Opens to Chileans Without Savings
SANTIAGO – A Chilean housing initiative, teh DS120 subsidy, is offering a pathway to homeownership for individuals capable of paying rent but lacking the savings typically required for mortgages or other housing programs. Managed through real estate leasing companies, the program allows monthly rental payments to contribute towards the eventual purchase of a home.
The DS120 operates by combining a government subsidy with the beneficiary’s monthly rental contributions to cover the total agreed-upon price of the property. According to 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 encompasses the lease value, a portion allocated to the home’s purchase, and additional contract charges like insurance. Once the combined subsidy and contributions equal the full price, a purchase and sale contract is signed, transferring ownership to the buyer.
Eligibility for the DS120 requires applicants to meet several criteria: be of legal age; be registered in the Serviu Single Registry (presenting identification); not currently own a home, nor have a spouse who does; not have previously received state housing assistance; possess a “housing leasing savings account” with a promise to buy and sell; and not have existing lease contracts with current promises of sale. In the case of married couples, only one spouse may register.
Notably, the DS120 differs from other housing subsidies by not requiring a minimum savings amount. Though, real estate agencies administering the contracts may request an initial contribution, making personal resources beneficial for applicants.
