Created and regulated by Law No. 4380/1964, the SFH (Sistema Financeiro Habitacional = Financial Housing System) aims to reduce the Brazilian housing deficit, allowing the beneficiary to acquire, build or renovate residential properties, provided that the maximum limit to be financed is 80% of the value of the evaluation of the good – which cannot exceed R $ 1.5 million.
Some requirements are indispensable: the unit must be residential, located in an urban area, duly registered with the competent Real Estate Registry, located in the same municipality in which the beneficiary exercises his occupation (or in the one where he resides or works for at least one year), and the property cannot have been negotiated using the FGTS in the last 3 years, both in its acquisition and in its construction.
The SFI (Sistema Financeiro Imobiliário = Real Estate Financial System) is an alternative for profiles that do not meet the requirements of SFH. This system was regulated by Law No. 9514/1997, and provides for the participation of financial institutions, without stipulating a limit on the amount of financing, nor of the valuation price of the good. It serves individuals and companies, and can be used to purchase a second property, or a commercial property.
The funds of SFH and SFI are mainly raised in savings deposits by banks and other financial institutions that are part of the Brazilian Savings and Loan System (SBPE = Sistema Brasileiro de Poupança e Empréstimo). In this case, the National Monetary Council (CMN = Conselho Monetário Nacional) establishes the minimum percentage of resources that will be mandatorily invested by these entities in residential and non-residential real estate financing operations.
In addition, in the case of SFH, the funds also come from the Guarantee Fund for Time of Service (FGTS = Fundo de Garantia por Tempo de Serviço), when used for real estate financing.
In both systems, financial institutions can direct other resources for real estate financing, such as those raised through mortgage letters, mortgage bills or guaranteed real estate bills offered to their clients. (Source: Banco Central do Brasil)
