With a total population of 129 million, It is no secret that Mexico has one of the most competitive mortgage markets in the world. INFONAVIT, a government agency, was created to help affordable fund housing for Mexican citizens. It does this by providing low-interest loans at favorable rates to people with good credit scores. You can find the answer here. This article will outline everything you need to know about getting an INFONAVIT loan and how it can benefit you!
Overview of INFONAVIT
INFONAVIT is a government agency that provides low-interest loans to Mexican citizens with good credit. The idea behind INFONAVIT is simple: it helps affordable housing for Mexicans become a reality by providing the financial backing needed to do so. The good credit of Mexican citizens can be a bit of a double-edged sword, however. On the one hand, it means it is likely little to no risk involved in lending money to Mexican citizens for mortgages since they have proven themselves responsible with their finances. On the other hand, this also means that INFONAVIT will only fund those who meet its prerequisites and stricter funding guidelines than those found at private institutions.
Benefits of Having an INFONAVIT Loan
So, what will we benefit from having an INFONAVIT loan? The benefits are great, but it is important to note that they come at a cost. As stated above, INFONAVIT will only lend money to those who meet its prerequisites and stricter funding guidelines than you would find elsewhere. However, the loan comes with an interest rate of around five percent, far lower than what most other lenders charge.
As such, it makes sense to get your INFONAVIT loan before you attempt to obtain a mortgage from other lenders. The benefits of having an INFONAVIT loan are the lower interest rates than most mortgages (around five percent). Aside from that, the process of pre-approval and funding only takes two weeks of application submission. Also, the low credit scores will not result in denied applications.
Types of Available Loan
There are several types of loans that INFONAVIT offers for potential homeowners. The first is a primary mortgage loan, in which you can purchase or build whatever kind of property you please with no restrictions on the price. The second is an Agricultural Mortgage Loan, which differs from the standard option in that it cannot be applied toward urban properties and comes with a limit of around $50,000.
The third type of loan is a Special Mortgage Loan. People use it to purchase property that falls under either of the first two categories. However, it limits both price and square footage (around USD 50,000 for smaller properties). The last option available through INFONAVIT is the Student Housing Finance program; this one is a bit more unique. The program provides low-interest loans to Mexican students who wish to purchase or build a home that can be used as housing while in school and then become their primary residence once they graduate.
