A home remodeling loan, as its name indicates, is a financing scheme aimed at renovating or expanding real estate, which is owned by the borrower, either from Infonavit, Fovissste or a financial institution.
Remodeling loans are distinguished from traditional mortgages by offering a lower percentage of financing, which will be granted according to the value of the property to be mortgaged, resulting in a lower loan amount.
This type of credit is perfect if you already have a property under your name and it no longer meets your needs, due to its size or in the event that you want to improve your housing conditions because your family has grown.
Whatever your situation, it is important that you know that you can use your home remodeling credit for different situations, learn about them below.
How can you use your loan to remodel your home?
- minor renovations
- major renovations
- Purchase and renovation of real estate
Minor remodels
Some of the financial entities that offer home remodeling loans, such as INFONAVIT, classify the type of renovation according to the extent of the work, and according to this classification they grant a credit of greater or lesser amount.
In the case of INFONAVIT, minor renovations are considered to be all those that do not modify the structure of the property.
So it can be about maintaining the property by applying new and waterproof paint to the walls and ceilings, as well as changing the tiles on the walls and floors or acquiring new furniture for the bathroom or kitchen.
major remodels
In the case of the loan to remodel a house from INFONAVIT, major renovations are considered as all those that modify the structure of the property, including building or demolishing walls and windows, building new spaces such as rooms or a garage.
The main difference between this type of credit and construction credit is in the requirements.
Since, to obtain a construction loan, you only have to own a piece of land, while the renovation credit requires a property under your name.
Purchase and renovation of real estate
Generally, home remodeling loans are directed exclusively for the renovation of an existing home, which must already be in the possession of the mortgagee.
However, some credit institutions also have financing that allows you to buy a property and remodel it at the same time.
These types of credits are excellent for investing in affordable properties and improving them through renovation.
Since it is otherwise difficult to obtain a loan for remodeling, if you are already paying a mortgage for the purchase of a house.