The short answer
Cofinavit is a loan in which Infonavit and a financial institution lend together: the bank's amount is added to the institute's so you can reach a higher-priced home, new or resale. It makes sense when your Infonavit loan alone falls short. Compare the combined total annual cost and the bank's terms.
Many houses in areas such as Zibatá, Juriquilla or El Refugio cost more than a traditional Infonavit loan provides. Co-financing lets you combine your Infonavit sub-account and loan with a bank loan. This guide explains how it works in general terms.
How does co-financing work?
Cofinavit involves two lenders: Infonavit, which lends based on your pre-qualification and housing sub-account, and a bank or other financial institution, which lends the rest based on your ability to pay. The scheme launched in 2004 and can be used for new or resale homes, and even land.
Source: Wikipedia: Infonavit
Who is it for?
People who contribute to Infonavit, have income a bank can verify and want a home priced above their individual loan amount. It also suits those who want to put their sub-account balance toward the purchase instead of leaving it idle.
Which payments will you make?
Usually there are two obligations: payroll deductions for the Infonavit portion and a monthly payment to the bank for its share. Check in the quotes how each is split and what happens if you change jobs, since the institute's deduction depends on your employment.
More detail
Also ask about the insurance attached to each part of the loan and whether early repayment carries fees. Get everything in writing before signing.
How do you compare bank offers?
Different banks take part in the scheme with different terms. Compare rate, term, required down payment, fees and insurance, and use the total annual cost (CAT) as a common yardstick. Banco de México offers a calculator to estimate it.
- Fixed or variable rate, and for how long.
- Origination and appraisal fees.
- Life and property insurance included.
- Early repayment terms.
Source: Banco de México: Calculadora del Costo Anual Total (CAT)
What are the steps?
Pre-qualify with the institute, apply to the chosen bank, pick the home, get the appraisal, assemble the file and sign before a notary. With two lenders, the deed will include both lenders' security interests in the home.
Source: Wikipedia: Hipoteca
Cofinavit or a stand-alone bank loan?
If your housing sub-account holds a meaningful balance, co-financing lets you put it toward the purchase. If the balance is small or you prefer a single installment, a stand-alone bank loan may be simpler. Compare both for the same amount, term and CAT.
In some cases the sub-account can also serve as collateral or a payment in other bank schemes; ask the lender which options exist.
