Government Decree No. 227/2025 defines the eligibility criteria. It provides the framework for lending institutions, which then develop the detailed rules of application and credit assessment. The decree is not entirely clear in all respects, and in some cases its interpretation remains debated.

𝐓𝐢𝐩#𝟏 It is advisable to begin the process with a preliminary credit assessment. This allows the applicant to determine whether they qualify and for what amount before undertaking any contractual obligations in connection with the purchase.

Note: Credit assessment may vary significantly between banks. One bank may reject the application or approve a much lower amount, while another may grant approval under the same circumstances.

A Common Misconception: When Otthon Start is mentioned, many assume they are not eligible because of their age, believing the programme is only for young people. In reality, there is no upper age limit — only a minimum age of 18 years.

Basic Eligibility Requirements:

• The applicant must be at least 18 years old

• Must reside in Hungary and lawfully remain in the country (Hungarian citizen, EU citizen, third-country national with permanent residence permit, or officially recognised stateless person)

• Must have a clean criminal record

• Must not have public debt exceeding HUF 5,000, or must settle it within 14 days

• Must have at least 2 years of continuous social security relationship, including at least the last 180 days in Hungary in gainful employment (interruption of up to 30 days — or up to 6 months following termination of student status — permitted)

• Must meet bank creditworthiness requirements

• Must qualify as a first-time home buyer

Who qualifies as a first-time home buyer?

Fortunately, this does not only include those who have never owned any property.

Only inner-area residential properties must be considered. Furthermore, ownership of up to 50% share in one residential property does not exclude eligibility. Also, if the applicant owns a property encumbered by usufruct and the usufruct holder resides in it, this is not a disqualifying factor.

In detail:

A first-time home buyer is someone who, at the time of application and within the previous 10 years, has not owned an inner-area residential property.

Exceptions apply if the previously owned or currently owned property:

• had an ownership share value not exceeding HUF 15 million

• was subject to demolition ordered or authorised by the building authority

• was encumbered by usufruct and occupied by the usufruct holder

• was owned only up to 50%, and the applicant has ownership in only one inner-area residential property

Preferential Rules for Spouses:

In the case of spouses, it is sufficient if only one spouse qualifies as a first-time home buyer and meets the 2-year social security requirement.

This is significant for creditworthiness assessment, as both spouses’ income may be taken into account. Other conditions (clean criminal record, no public debt, etc.) apply to both spouses.

Preferential Rules for Parent–Child Applications

Here arises the interpretative difficulty mentioned earlier.

It is clear that if a parent joins the loan application due to creditworthiness considerations, it is sufficient if only the child (aged 18 or above) qualifies as a first-time home buyer and meets the 2-year social security requirement.

The parent may join as co-debtor, allowing their income to be considered for credit assessment. Other general conditions apply to the parent, but they do not need to qualify as a first-time home buyer nor meet the 2-year social security requirement.

The interpretative question was whether the reverse could apply — meaning if only the parent qualifies as first-time home buyer and meets the social security requirement, and the child joins as co-debtor.

My interpretation was that only the first scenario would be accepted.

Update:
The decree has since been amended, confirming this interpretation. The child must qualify as a first-time home buyer. The parent may join only as co-debtor and may not acquire ownership in the property purchased under this arrangement. The reverse structure is not permitted; a child may not join a first-time home buyer parent as co-debtor under these preferential rules.

In the next part of this article series, I will discuss the conditions applicable to the purchased property.