Beirut, Lebanon (Enmaeya News) — Lebanon has doubled the maximum value of state-backed housing loans from $50,000 to $100,000 in a bid to ease its mounting housing crisis and help low- and middle-income citizens buy or renovate homes amid surging property prices.
The Housing Bank secured renewed funding of approximately $165 million from the Arab Fund for Economic and Social Development. The decision to raise the loan ceiling comes in response to growing demand, particularly after recent conflicts pushed many families to relocate, driving up real estate prices in safer regions such as Mount Lebanon and the North.
The original $50,000 loan cap, introduced in early 2024, was quickly deemed insufficient in a market where prices have outpaced average household incomes.
The new loan ceiling, approved by Lebanon’s Cabinet, will come into effect once published in the official gazette and ratified by the Housing Bank’s board of directors.
Loan Terms and Conditions
The structure of the loan program remains the same, with eligibility based on income, property documentation, and proof that applicants do not already own a home. Applicants will now need to demonstrate higher income levels to qualify for the larger amount. Loans will be issued and repaid in U.S. dollars.
While demand is high—with thousands having submitted applications—only a few hundred borrowers have received loans so far due to documentation delays and limited funding.
Officials say $100,000 is the maximum allowed under the current agreement with the Arab Fund. Negotiations with other potential donors are ongoing.
Challenges Remain
Despite the increase, experts warn the loan expansion falls far short of market demand. Lebanon needs around 15,000 new housing loans annually, yet the Housing Bank is only able to issue around 300 to 400 loans per year.
There are also legal concerns. Lebanon’s parliament has yet to pass legislation ensuring that loans disbursed in U.S. dollars are repaid in the same currency. Without such a law, future currency fluctuations could undermine the sustainability of the program.
Still, officials hope the move signals renewed momentum for affordable housing and encourages young Lebanese to remain in the country rather than emigrate.
