If you are looking to finance the purchase of your home through a mortgage credit in Mexico, it is important that you know the different loan options that exist in the country and for whom they are applicable.

If you are a foreigner but you live and receive a payroll in Mexico, you can apply for some of the credit options in Mexico; However, it is recommended that you investigate with each type of credit the requirements they request and if you are eligible for it.

Crédito INFONAVIT

The Instituto del Fondo Nacional de Vivienda para los Trabajadores (INFONAVIT) is a government institution that offers financial support to buy a home to Mexican workers.

If you are a foreigner with residence in Mexico and you are affiliated with the IMSS through the company that hires you, thus quoting fortnightly, you can also enjoy this credit.

INFONAVIT credit is a good option if you do not have a good credit history, as it does not ask for it as a requirement.

However, it offers a maximum amount of 1.7 million pesos and you can combine your INFONAVIT credit with a bank one to buy a house for a larger amount, or you can put another part in cash if you have it.

The disadvantage of the INFONAVIT credit is its interest rate. Compared to other loans, it has a rate of 12 percent, making it more expensive than other credit options that we describe below.

It also considers that an INFONAVIT loan can be granted for a term of up to 30 years, so you pay more interest, resulting in a much more expensive investment.

Credit FOVISSSTE

FOVISSSTE is the Housing Fund of the Institute of Social Security and Services.

Like INFONAVIT, it is a government institution that offers home loans to nationals who work in public bodies and actively contribute to the fund for a minimum of 18 months. This is not available to foreign residents.

The FOVISSSTE loan interest rate is much more accessible than other loans, hovering between 4 and 6 percent.

Both the INFONAVIT credit and the FOVISSSTE credit have several requirements to meet to request and obtain it.

In addition to nationality and / or residence, they also request seniority in your workplace, among others.

Bank credit

A real estate mortgage is granted through financial institutions established in Mexico, that is, banks.

The advantage of these credits lies in their flexibility and benefits for the applicant.

Depending on the financial institution with which you contract your loan, you can enjoy things such as zero commission for opening, inclusion of real estate insurance in the financing, option of capital payments without penalty, among others.

Another advantage is that they give a maximum of 20 years for payment, resulting in lower interest payments compared to the INFONAVIT credit.

The interest rate of a bank can vary between 6 and 10 percent, and they have the option of a fixed rate (it is the most recommended option) or variable.

To apply for a mortgage loan it is necessary that you review the requirements with each banking institution, but in general they will ask you to present proof of your current employment situation, credit history, official identification and that you take out insurance.

What is the best option for you?

There is no correct answer, as it depends on your possibilities, the state of your finances and your credit history, and the value of the property you are looking to acquire.

When you are choosing, consider the interest rate, the term of the loan, the benefits and penalties, the requirements to apply and the amount you can put down. Thus, you will be able to compare and know which is the best option for you.