The Achim La’Bayit Program
Achim La’Bayit: Overcoming Hurdles Toward First-Time Homeownership
Achim La’Bayit helps Israelis with limited financial means become first-time, financially responsible homeowners through a seven-step financial literacy coaching program, complemented by accessibility to supplemental loans for down payments.
Why Tackle Homeownership?
Over the past ten years, real estate prices across Israel have nearly doubled while salaries remain almost stagnant. At the same time, due to regulatory requirements, the down payment for a mortgage is set at a minimum of 25% of the purchase price. Even so, most banks do not grant mortgages for less than 40% of the purchase price. These factors make home purchase almost impossible for most young Israelis.
The rental market in Israel cannot provide housing stability to families due to a lack of multi-family buildings with long-term rental options as are often available in the US. Israeli renters generally need to move from one apartment to another every two-three years, negatively affecting multiple aspects of their lives.
Homeownership helps ensure financial stability via:
- Investing in an asset with potential growth in value
- Facilitating the capacity to save once a mortgage is fully paid
- Breaking the cycle of poverty by being able to pass a home down to future generations
- Financial literacy coaching: Achim La’Bayit accompanies potential first-time homeowners with limited means through a seven-step process to provide financial analysis and guidance, and assess whether homeownerships is attainable. Following the mentoring stage, the coach helps participants find the home that meets their needs and their budget.
- Supplementary loan: While a low-middle income family may be able to afford a monthly mortgage, putting 40% of the purchase cost down upfront is often impossible. Following the coaching process, participants with the financial capacity to purchase a home but who still lack the full down payment are eligible to apply for a supplemental IFLA loan of up to NIS 100,000.
For more information and program registration click here (Hebrew only), or contact us at the Israel Free Loan Association at email@example.com
Donate today to support this program:
* Please add a comment to your gift letting us know that you dedicate it to the Achim La’Bayit Homeownership Program
** U.S. tax deductible contributions are made to American Friends of IFLA (AFIFLA, 501(c)3).