Mexican Workers Achieve Home Ownership Through INFONAVIT

Housing programs for Mexican workers play a crucial role in improving living conditions and fostering economic stability among the nation's workforce. One of the most significant initiatives is INFONAVIT, a federal entity dedicated to providing affordable housing solutions. 

Established in 1972, INFONAVIT mandates employer contributions to a housing fund, allowing workers to access loans for purchasing homes in accredited developments. This program has enabled millions of Mexican workers to achieve home ownership, promoting social welfare and community development. 

By expanding its reach to include domestic workers through the 'INFONAVIT PARA TODOS' program, INFONAVIT continues to ensure that housing programs for Mexican workers address the needs of a diverse and growing labor force, ultimately contributing to the country's economic and social progress.

‘INFONAVIT’ stands for the Instituto Nacional para el Fomento a la Vivienda para Trabajadores, or National Institute for the Development of Worker Housing.

Created to address housing needs for Mexican workers, particularly those in the lower-middle and lower-wage brackets, INFONAVIT requires employers to contribute a percentage of hourly pay—currently 5%—to a fund supporting the construction of worker housing. Employees can qualify for loans up to a specified amount in INFONAVIT-accredited developments.

Since its establishment in 1972, INFONAVIT has benefited around nine million families. Recent data shows that INFONAVIT financed 430,000 homes in 2011, reaching 90% of its target. The fund designs, finances, and contracts entire subdivisions, fostering a unique dynamic where Mexican manufacturing workers often become neighbors.

Contributing to INFONAVIT has been mandatory for both small and large businesses. Recently, the program expanded to include domestic workers. Two years ago, those employed as domestic help were given the option to join under the program 'INFONAVIT PARA TODOS' (INFONAVIT FOR ALL). 

To qualify, domestic workers must receive wages at least once every thirty days and provide an official identification number (CURP) and a national identification card. With this documentation, they can apply for membership at a Centro de Servicio INFONAVIT (CESI). Today, around two million babysitters, maids, chauffeurs, watchmen, and nannies are members. Additionally, any domestic worker whose employer contributes to the Social Security fund (IMSS) is also covered.

INFONAVIT account funds theoretically belong to workers, but they cannot withdraw these funds in cash. Recent legislation allows funds to be transferred to individual retirement accounts. 

Workers can check their credit amount on the INFONAVIT webpage using their social security numbers. Foreigners can also qualify as co-owners of properties. Government figures indicate a seven percent default rate for INFONAVIT, comparable to the overall Mexican housing industry. Home loans have an average interest rate of six percent, with adjustments based on the annual national minimum wage increase.

While INFONAVIT membership offers the promise of homeownership, the wait can vary significantly depending on the location in Mexico, ranging from almost nothing to over five years. Only about one-third of worker housing is INFONAVIT-affiliated. Mortgages, once obtained, typically span thirty years.