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FAMSA Loans Guide: How to Qualify? (5 Tips & Benefits)

Published On January 5, 2024

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In times of unexpected expenses or when seeking financial flexibility, individuals facing such situations can explore Famsa Loans. These loans, provided by a financial service company, aim to assist numerous families and individuals with much-needed funds.

Famsa, primarily a furniture and appliance retailer, extends financing options, including Famsa loans, to customers looking to finance purchases like furniture, electronics, and appliances from their stores.

This guide offers a comprehensive overview of Famsa loans, covering details such as how they operate, requirements, benefits, drawbacks, alternatives, and tips for securing approval.

What are the Famsa Loans?

Famsa, a furniture and appliance retailer, boasts over 100 stores across the southern and southwestern United States. Originating in McAllen, Texas, in 1970, it has grown to become one of the country’s largest Hispanic-owned retailers.

Famsa doesn’t just sell furniture, mattresses, appliances, and electronics; it goes a step further by offering customized payment plans and financing options to enhance affordability for customers. Among these financing options are Famsa loans.

Famsa loans come in two types: closed-end and open-end loans.

Closed-end loans are fixed-term installment loans, meaning you borrow a set amount to be repaid over a fixed number of months with consistent monthly payments.

Open-end loans function more like revolving credit accounts, allowing users to access funds up to a maximum credit limit as needed. Minimum monthly payments are made based on the balance.

Both types of loans offer a convenient way to finance significant purchases, spread costs over time, and contribute to building credit.

What are the type of Famsa Loans?

Famsa provides various types of loans to meet diverse financial needs:

Famsa Personal Loans:

Purpose: Famsa’s personal loans cater to a range of needs.

Interest Rates: Fixed interest rates are applied.

Repayment: A set repayment schedule must be followed.

Famsa Payday Loans:

Amount: Typically smaller amounts suitable for urgent financial needs.

Repayment: Expected on the next payday, making them short-term and quickly approved.

Famsa Auto Loans:

Purpose: Designed for purchasing vehicles.

Terms: Specific conditions may apply, such as using the vehicle as collateral.

Interest Rates: Competitive rates are offered through Famsa’s financing services.

Famsa Mortgage Loans:

Purpose: Available for home purchase or refinancing existing mortgages.

Conditions: Repayment periods and interest rates vary based on financial situations and preferences.

What are the Requirements for Famsa Loans?

To be eligible for a Famsa loan, you need to meet these basic requirements:

  • Minimum age of 18 years.
  • Valid photo ID.
  • Social Security number.
  • Regular source of income.
  • Minimum income requirements, usually starting from $800 – $1,000 per month.
  • Not currently in active bankruptcy.
  • Discharged bankruptcy must be at least 12 months old.
  • No outstanding bad debts with Famsa.

Additionally, Famsa conducts a credit check, considering credit scores and history to determine eligibility and loan terms. While financing is available if  you have bad or no credit, better scores may qualify for lower rates.

How does the Famsa Loans Works?

The process of applying for and utilizing Famsa loans is simple:

  1. Select Items: Choose the items you want to buy from Famsa, such as furniture, appliances, electronics, computers, or jewelry.
  2. Apply for Financing: Apply for the loan at the store during checkout. Provide basic information, income documentation, and ID.
  3. Fast Approval: Receive a quick financing decision, often within minutes or hours, as Famsa handles applications in-house.
  4. Sign Loan Agreement: If approved, sign either a closed-end loan agreement or an open-end credit account agreement. The agreement includes details like loan amount, fees, interest rate, term length, and payment schedule.
  5. Make Purchases: Use your loan funds or credit line immediately to make the desired purchases.
  6. Monthly Payments: Repay the Famsa loan through monthly installment payments (for closed-end loans) or minimum payments (for open-end credit). Payments can be made in-store, online, or over the phone.

What are the Famsa Loan amount, terms, Interest Rates, fees?

Famsa provides flexibility in loan amounts to suit different needs:

  • Minimum loan amount is usually $200.
  • Maximum loan amount can vary but may go up to $10,000 or more.

The specific amount depends on factors like income, credit history, and existing debts to ensure manageable monthly payments.

For closed-end loans, Famsa offers terms ranging from 12 to 36 months, making payments affordable based on the loan amount:

  • 12 months for smaller amounts (around $500).
  • 18 months for loans between $1,000 and $2,000.
  • 24 months for mid-size loans ($2,500 to $5,000).
  • 36 months for larger loans (over $5,000).

Interest rates vary based on loan type, credit scores, and income:

  • Closed-end loans: Rates from 16.99% to 29.99% APR.
  • Open-end credit accounts: Rates from 16.99% to 29.99% variable APR.

Higher credit scores (690+ FICO) qualify for lower rates, while limited credit or lower scores may result in higher rates.

Fees associated with Famsa loans include:

  • Origination fee: A one-time processing fee, typically $39.
  • Annual fee: For open-end credit accounts, around $39 per year.
  • Late fee: Up to $10 if payment is over 15 days late.
  • Returned payment fee: Up to $30 if the payment check bounces.

Any applicable fees will be disclosed during the application process, and there are no prepayment penalties for settling the Famsa loan early.

Pros and Cons of Famsa Loan

Pros of Famsa LoansCons of Famsa Loans
Fast approvalHigh APRs
Flexible termsRisk of overspending
Variety of itemsMissed payment fees
Special offersCredit impact
Credit buildingFamsa-only
Buy now, pay laterDebt obligation
No collateral

Is the Famsa Loan worth it for you?

Famsa loans turn purchases of furniture, appliances, and electronics into affordable monthly payments, offering an alternative to paying a large sum upfront. Before committing, carefully assess costs, risks, and alternatives.

Famsa loans suit those with an immediate need who understand the terms and can comfortably manage monthly payments. With options for both good and bad credit, Famsa loans provide a chance to acquire desired items over time.

However, exercise discipline to avoid overspending and manage payments responsibly, contributing to the building of your credit history.


Famsa loans offer customers a way to finance furniture and appliances through monthly installments. These loans, both closed-end and open-end, come with set repayment terms, making it easy for people to buy items and pay over time. Although interest rates and fees are higher compared to other options, Famsa loans are accessible in-store and can be beneficial for those with limited finances or credit challenges. Understanding the costs and using Famsa financing for essential purchases helps customers access needed items while working to improve their credit for the future.

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Famsa offers personal loans, payday loans, auto loans, and mortgage loans to cater to various financial needs.

To qualify for a Famsa loan, you need to be at least 18 years old, have a valid photo ID, a Social Security number, a regular source of income, and meet minimum income requirements.

The application process involves selecting items, applying for financing at the store, receiving a fast approval decision, signing a loan agreement, making purchases, and repaying through monthly installments.

Famsa Loans can be worth considering for those with immediate needs, offering fast approval, flexible terms, and the opportunity to build credit. However, borrowers should carefully evaluate costs, risks, and alternatives to make an informed decision.

If I want to send a payment by mail, where should I send it? How do I reach Customer Service, and what are the hours for Famsa’s Call Center? Just give a ring to our toll-free customer service line at 1-866-883-2672.

As Famsa strives to mend relationships impacted by various social problems, they’re dealing with irregular financial support from the Department of Social Development (DSD). The DSD is supposed to provide monthly funding to the organization.

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