How to Get Housing Through the State Program for Families in Border Villages of Armenia? Conditions, Benefits, and Hidden Pitfalls

Moving to Armenia’s border villages can be a smart move for families dreaming of owning a home. In 2022, a special support program was launched to help Armenian families obtain housing with virtually zero interest payments. Here's why: the government covers the mortgage interest and part of the principal, and you can receive up to AMD 21 million with no down payment required.

In this article, we’ll explain how the program works, who can participate, the terms and conditions, key points to consider, and what happens once the program ends.

What does the program offer for families living in Armenia’s border villages?

The state program is officially titled “On Supporting Housing Affordability for Families in Border Settlements of Armenia.” It aims to boost the population and improve infrastructure in strategically important villages where the government wants to attract more permanent residents.

Target audience:

1. Families currently living in, or ready to move to, one of Armenia’s border villages.

1. At least one spouse must be a citizen of Armenia.

Key Terms and Requirements of the Program

In certain villages — such as Baghanis, Berkaber, Koti, Voskepar (Tavush Province), and Gomk (Vayots Dzor Province) — additional support of AMD 5 million is available.

The program for border families has no age restrictions. Below are the main eligibility criteria:

1. Citizenship – at least one spouse must be an Armenian citizen.
2. Family status – the applicants must be a married couple.
3. Property ownership – you must own land or an unfinished structure in a border village.
4. Construction approval – you need a valid building permit and an approved construction project.
5. Residency requirement – you must commit to living in the completed home.

Bottom line: Families of any age can apply, provided all other program conditions are met.

What does the family actually receive?

1. Interest-free loan – the government fully covers the mortgage interest
2. Partial repayment of principal – the government pays off AMD 16–21 million of the loan amount
3. No down payment – you don’t need savings to join the program
4. Flexible term up to 20 years – manageable monthly payments

In essence, this is a unique opportunity to build a home with minimal financial burden, especially given the high interest rates currently on the market.

What’s the Difference Between Interest Subsidies and Partial Loan Repayment?

It’s important to understand that the program combines two different forms of government support:

1. Interest rate subsidy – the government fully pays the interest on your loan (you only repay the principal).
2. Principal loan financing – part of the loan amount itself is covered by the state budget.

Example:

If you receive a loan of AMD 20 million, and:

1. AMD 5 million is fully paid off by the government.
2. The remaining AMD 15 million is repaid by you over 20 years, with no interest (0%).

How to Enroll in the Program: Step-by-Step Guide

1. Make sure you meet the requirements (married couple, Armenian citizenship, willingness to live in a border village).
2. Find a plot of land or an unfinished building in one of the designated border villages.
3. Obtain a construction permit and approve your building plan.
4. Gather the required documents and apply to an authorized bank.
5. Get approved and sign the contract.

Note: Construction and mandatory residence in the home are key conditions for participating in the program.

And don’t forget to compare all mortgage programs in the “Mortgage” section on AFM.

Which Villages Are Included in the Program?

Here is the complete list of border settlements participating in the housing support program:

Ararat Province – Yeraskh, Paruyr Sevak, Tigranashen

Gegharkunik Province – Chambarak, Vahan

Vardenis – Nerkin Shorzha, Verin Shorzha, Geghamasar, Sotk, Azat, Kut, Norabak

Vayots Dzor Province – Areni, Khachik, Zaritap, Khndzorut, Sers, Nor Aznaberd, Bardzuni

Tavush Province – Noyemberyan, Baghanis, Barekamavan, Berdavan, Dovegh, Koti, Voskepar, Voskevan

Berd – Aygedzor, Aygepar, Artsvaberd, Movses, Nerkin Karmir Aghbyur, Chinari, Choratan, Paravakar, Verin Karmir Aghbyur

Azatamut – Aygehovit, Aygehovit, Kayan, Berkaber

Tsaghkavan (Ijevan Region) – Kirants, Koghb, Sarigyugh, Sevkar, Vazashen, Vazashen

Syunik Province – Kapan, Agarak, Geghanush, Ghamaran, David Bek, Ditsmayri, Ekhvard, Khndrats, Kaghnut, Nerkin Khand, Shikahogh, Sznak, Srashen, Vardavank, Uzhanis, Chakaten, Tsav, Bargushat, Khordzor

Goris – Khndzoresk, Karahunj, Artashen, Dzorak, Nerkin Khndzoresk, Ahbyulagh, Shurnukh, Vorotan, Vanand, Bartsravan

Tegh – Aravus, Khnatsakh, Khoznavar, Kornidzor, Karashen, Vaghatur

Tatev – Meghri, Khot, Nrnadzor

Total: 23 regions, 82 settlements

Lifehack: Choose villages where additional support is available, so you can receive up to AMD 21 million instead of 16.

What to Do If You Don’t Own Land or Property in a Border Village?

One of the key requirements to participate in the program is owning a plot of land or an unfinished building in one of the designated border settlements. But if you don’t yet own such property, that doesn’t mean you can’t take part.

You can:

1. Purchase a plot or unfinished building in an eligible village — this is the first step to applying.

1. Check with the local administration to see if there’s available land or offers for future program participants.

1. Contact real estate agencies specializing in border regions — they often handle properties that meet program requirements.

If you’ve already found a suitable plot, be sure to verify its legal status and whether construction is permitted (you’ll need an approved project and building permit).

Only after acquiring ownership and preparing your project can you fully participate in the program and receive the subsidies.

Program Duration

The program was launched in June 2022. It is currently active, but its duration is limited and depends on government priorities and available funding.

The sooner you apply, the higher your chances of securing the benefits under current terms.

What If the Program Ends?

1. All families who have already signed a contract under the program will retain all the benefits (subsidies, 0% interest rate, special terms).
2. New applications will no longer be accepted after the program ends.
3. The support scheme may be revised, modified, or fully suspended. That’s why it’s not recommended to delay — especially if you’re already looking for land or a house.

The official end date of the program has not been announced by the government.

How to Join the Program If You Don’t Have Money to Buy Land or a House?

If you meet the requirements of the state program but don’t have the funds to purchase a plot or unfinished building in a border area, there are several options:

1. Take out a consumer loan to buy the land — and then use the state-backed mortgage for construction.

1. Look for land with a pre-approved construction project at a reduced price — some villages offer such deals, especially with support from the local community.

1. Seek help from relatives or apply for a joint loan with a family member — such as a parent, sibling, or other close relative.

1. Negotiate an installment plan with the seller — this is more common in rural areas than in cities.

1. Ask the local administration whether it’s possible to obtain land for free or at a reduced rate — in some regions, land is provided on the condition that you build a home.

While the program does not cover the cost of purchasing land, the subsequent expenses for construction and loan interest are partially or fully compensated, making participation financially worthwhile.

The key is to build a smart entry strategy into the program.

What to Pay Attention To: Tips and Lifehacks

When applying for a mortgage under the state support program for families in Armenia’s border villages, keep the following points in mind:

1. Check the village status – is it included in the program, and is additional support available?

1. Make sure all documents are official – ownership title, building project, and construction permit.

1. Don’t forget the residency requirement – this is a key condition for participation.

1. Clarify details with the bank – in some cases, they may offer additional consultations and help with document collection.

Study the Contract Carefully!

Before signing the mortgage agreement, read all terms thoroughly, especially the sections related to force majeure and emergency situations. These clauses define your rights and obligations in unforeseen circumstances such as natural disasters or other exceptional events.

Understanding these terms will help you avoid unexpected liabilities and protect your interests during difficult times.

Can Non-Residents Participate in the Program?

The program is primarily designed for Armenian citizens — participation is allowed if at least one spouse holds Armenian citizenship.

Non-residents without Armenian citizenship cannot directly access the subsidies and benefits provided by the program.

However, there are no restrictions on real estate purchases by non-residents in Armenia — you can still buy property, but mortgage loans are mostly issued to Armenian citizens.

If you are planning to move and are interested in the program, it’s worth consulting banks in advance regarding individual terms and possible exceptions — or you can check all current mortgage options available to non-residents in Armenia on our platform.

Conclusion

The state support program for border families is a unique opportunity to get a home with zero interest and no down payment — something that’s virtually impossible on the open mortgage market today. To compare:

1. The average mortgage interest rate in Armenia is 10–13% per year — but under this program, it’s reduced to 0% thanks to government subsidies.
2. On regular terms, a family taking out a 20-year mortgage at 13% annual interest ends up paying almost double the original loan amount.
3. Under the program, you can save up to AMD 15–20 million just due to the elimination of interest.

In addition:

1. The government covers part of the principal (up to AMD 16 or 21 million).
2. There is no down payment required, removing one of the biggest barriers for young families entering the housing market.
3. The program benefits not only individual households but also addresses key national goals — populating border villages, developing infrastructure, and strengthening community-level security.
4. There are no age restrictions for participating families — another strong advantage of this initiative.

In summary: you get a home, save millions, and contribute to the country’s future.

If you’re seriously thinking about homeownership but are discouraged by high interest rates and lack of savings — this program eliminates both major barriers.

Even if you don’t yet own land or have sufficient funds — you have options: consumer loans, family support, seller installment plans, free land from communities.

The key is to take action in time.

Share this information with friends and family — it might be the opportunity someone needs to start a new life and get the home they’ve always dreamed of.

And if you’d like to explore the terms of the program for families displaced from Artsakh or other current mortgage offers and housing programs, you can find them on our platform.