Mexico’s president launches ambitious, zero-interest mortgage plan

One month into her presidency, Mexican President Claudia Sheinbaum announced a new initiative to address her country’s housing deficit by building 1 homes and offering zero-interest mortgages, a development first reported by Newsweek.

The program is designed to support vulnerable groups, including female-led households, young people, Indigenous communities and senior citizens. The announcement fulfills Sheinbaum’s campaign pledge to create affordable housing and advance equitable urban development initiatives.

Sheinbaum’s Housing and Regularization Program is a partnership between the federal government and Mexico’s national housing agencies. Under the program, the National Workers’ Housing Fund Institute (INFONAVIT) will build 500,000 homes, and the National Housing Commission (CONAVI) will construct an additional 500,000 homes for those ineligible for traditional public housing programs, according to Newsweek.

The Welfare Financial Institution (FINABIEN), a new government-backed lender, will offer subsidized financing to further assist those outside of standard public housing eligibility.

The initiative includes significant funding, with the Mexican government committing the equivalent of about $30.8 billion in U.S. dollars for housing development, particularly in rural and underserved regions.

Sheinbaum’s housing plan also unfolds amid evolving U.S.-Mexico relations, with tensions around migration and trade expected to rise following Donald Trump‘s election.