Home Improvement

Types of Home Remodeling Loans

In addition to loans to buy homes, there are financing options for those who want to make improvements to their homes. Remodel your house with the help of one of these remodeling loans.

Some lucky people manage to quickly find the perfect house for them, others, however, acquire very good houses but require some improvements to be ideal and improve the quality of life of its inhabitants.

If your home is not in optimal condition, don’t worry, a remodeling credit is what you need to get your plans up and running as soon as possible.

These are the loans for home remodeling that exist in Mexico:

  • Infonavit Credits
  • Fovissste credits
  • Credit from banking institutions

Infonavit Credits

There are two types of Infonavit credit for remodeling a home:

Infonavit credit: this is a traditional mortgage credit like those that some people acquire to buy a new house. The amount of credit that can be granted to you depends on the total value of your property, the type of remodeling you have in mind and the savings in your housing sub-account.

It can be applied for regardless of your salary and the monthly discount is applied accordingly. It carries an annual interest rate of 12% and if you earn up to $7,191.79 pesos, there will be no operating, title or financial charges.

Mejoravit: it is granted by a financial entity, so you will keep your right to the mortgage credit from Infonavit, who will lend you an amount that must be less than 85% of your savings in this institution.

The amounts range from $4, 109.59 pesos to $57,534.31 pesos, depending on your salary and the term chosen which can be 12, 18, 24, or 30 months. It has an annual rate of 16.50% and a CAT, or total annual cost of financing, of 17.8%. You can apply again after four months of waiting after the first application.

Here you will find a list of requirements to apply for these credits.

Fovissste credits

Housing Fund is a good option for expanding and remodeling your home.

Grant from $6,000 pesos to $80,000 pesos, or up to 85% of the amount saved in your Retirement Savings System account to be paid within 18, 24 or 30 months. It has a CAT of17% and with the debit card that will be provided to you, you will be able to dispose of the money in some official establishments.

The main conditions to be eligible for this support are to be an active worker of the State and not to have an unpaid Fovissste credit, as well as to present official identification documents and to have 25% of the total cash for the payment of the labor.

Bank loans

Bancomer Fixed Mortgage Improve your Home: this bank credit option provides you with fixed payments, as well as a rate that does not vary according to the term of the loan. The interest generated is tax deductible and up to 40% of the total expenses are financed.

The amount of remodeling credit depends on the value of the property and the term in which it will be paid. For example, if your house costs $180,000 pesos and you want to pay back the credit in 10 years, this institution will lend you up to $72,000.00 pesos with monthly payments of $987.73 pesos.

Crédito Scotiabank, remodel your home residential plus: this financial entity offers an average CAT of 11.90% and a fixed annual interest rate of 10.35%. In a term of 10 years, I could lend you from $150,000 to $8 million pesos if the value of your property is at least $75,000 pesos. It can only be used for home remodeling and the type of monthly payment it handles is fixed.

To apply, you need to have 40% of the total money and earn a minimum salary of $20,000 pesos, with two years of seniority in your job and an age between 25 and 65.

Credit to remodel Banregio’s house: similar to the previous ones, the amount of credit approved by this institution will depend on the type of credit you choose (i.e. the amount of holders who apply for it), the term to be paid, the type of person benefited, the value of the property and the amount of financing desired in percentage.

That is to say, choosing a type of insurance of a single owner at a term of 10 years, the value of the property being $500,000 pesos (which is the minimum amount of value of the property for which you will be granted a credit) and a financing of 50% of the expenses, Banregio would lend you up to $253,750.00 with monthly payments of $3,790.54.

Inbursa Construction and Remodeling Mortgage Credit: This option ensures that the interest rate, which is 12%, will remain fixed as long as you pay the credit. With an average CAT of 14.20%, Inbursa could offer you a total amount of $150,000 pesos regardless of the value of the house you want to remodel.

Whether new or used, this amount should be covered at your convenience and can be requested by people between the ages of 21 and 75. You do not have a minimum wage requirement, but you need to have at least one year of seniority in your job.