Bonds and loans to renovate an old home in Peru

Renovating an old home in Peru combines two different logics: that of the State, through the Bono Familiar Habitacional and Fondo Mivivienda programs, and that of private credit, where Mibanco, traditional banks and cooperatives serve those who do not qualify for bonds. This guide summarizes the options in force in 2026, amounts and procedures for each.

Why renovating makes sense

Much of the building stock in Lima Cercado, Barranco, Magdalena, Callao and old centers like Trujillo and Arequipa is over 50 years old. Renovating an existing home costs less than demolishing and building anew, preserves the seismic-resistant structure when it is of confined masonry or reinforced adobe, and increases the appraisal value for future operations.

State programs in 2026

Bono Familiar Habitacional – Housing Improvement

The BFH for improvement, within the Techo Propio program of Fondo Mivivienda, grants a non-refundable direct subsidy to households with monthly family income below the annual limit published by the Ministry of Housing. In 2026 the typical bond for improvement is around S/ 11,500 to S/ 13,000, according to current rules, and finances wall reinforcement, sanitary improvements, safe electrical installation and roofs.

Key requirements:

• Be the owner of the lot or family home and prove it with a document registered in SUNARP or possession certificate issued by the municipality.
• Not having previously received state housing support.
• Minimum prior contribution from the family group (between 1 and 2 UIT, depending on the modality).

Techo Propio – Construction on Own Site

If the renovation involves rebuilding much of the home on the same land, it is worth reviewing the Construction on Own Site modality, which grants a larger bond (around S/ 30,000 in 2026) to those who own land but whose current home is not habitable.

Bond for Protection of Homes Vulnerable to Seismic Risk

A specific program that covers structural reinforcement of self-built homes. The bond covers 100% of the intervention cost (project + work) up to the maximum amount set by the Ministry. Mainly applicable in zones declared as high seismic risk.

Private credit for improvements

Mibanco

Mibanco offers home-improvement loans with terms of 6 to 60 months, typical amounts between S/ 3,000 and S/ 60,000 and competitive rates for clients with credit history. It is the most used option by small owners in popular districts.

Traditional banking

BCP, BBVA, Interbank and Scotiabank have personal credit lines and mortgage extensions for improvements. The mortgage loan "for improvement purposes" requires an updated appraisal by a registered appraiser and usually finances up to 80% of the property's value after the work.

Cooperatives and municipal cajas

CMAC Arequipa, CMAC Piura, Caja Cusco and others offer improvement lines with quick disbursement and average rates. For peripheral areas or independent workers, they may be the best entry point.

Step-by-step process to access the BFH

1. Verify eligibility on the Fondo Mivivienda website, entering DNI and family group data.
2. Register in the application module with support from an authorized Technical Entity (the official list changes quarterly).
3. The Technical Entity prepares the file: registration form, ID documents, literal copy or possession certificate, utility bill to prove address.
4. Provide the minimum required savings in an account in the head of household's name.
5. Evaluation and publication of the beneficiary list. Once approved, the contract with the Technical Entity is signed and work begins.
6. Liquidation of the work against a conformity record signed by the family and the municipality.

Practical case: a home in Comas

A family with monthly income of S/ 2,800 lives in a self-built home in Comas. The walls of the first floor require reinforcement and the electrical installation is in poor condition. The Technical Entity diagnoses a scope of S/ 18,500.

• BFH Improvement: S/ 12,500.
• Prior family contribution: S/ 1,500.
• Mibanco loan over 36 months: S/ 4,500 at 22% effective rate.

The monthly loan payment is around S/ 175, within the family's payment capacity.

Practical case: a manor house in central Trujillo

A 1940 home in Trujillo's historic center needs facade restoration, roof reinforcement and sanitary improvements. Being in a heritage area, the owner processes the permit before the Municipality of Trujillo and the Ministry of Culture. Financing combines:

• Mortgage loan of S/ 90,000 over 8 years with BCP, at 9.8% effective in soles.
• Own resources of S/ 30,000.
• Technical advisory from the Nuestras Ciudades Program to preserve heritage value.

Common mistakes

• Starting the work before the bond is approved: it is excluded from reimbursement.
• Forgetting physical-legal sanitation: if the home is not registered in SUNARP, it is best to first regularize ownership to access mortgage credit.
• Not considering the municipal permit: in districts like Miraflores or Barranco the requirements for facades and common areas are specific.
• Trusting contractors without RUC or receipts: it closes the door to claims and to IGV deduction when applicable.

When it is better to wait

Techo Propio Improvement calls open in stages. If your application is left out for lack of slots, registering for the next call is usually better than taking the full cost with expensive credit. Meanwhile, prioritize safety work: roofs in poor condition, defective electrical installation or walls with visible cracks.

Want to know what your home is worth before and after the renovation? Get a free Realio valuation in under a minute.