Financialization has become the main mechanism for accessing social housing (vivienda de interés social, VIS) in Ecuador, forcing low-income families to incur long-term debt to acquire basic housing which fails to meet their needs. This study analyses the relationship between debt and spatial transformations in two VIS programs in Loja: Ciudad Victoria and Los Geranios. Through spatial analysis and interviews, three main types of modifications made by homeowners were identified: (a) adaptations to improve habitability, (b) incorporation of productive spaces, and (c) formal changes for personal differentiation. These transformations respond to the need to correct deficiencies in the original designs, adapt to changing family dynamics, and generate additional income. The results reveal that between 50% and 90% of the buildings have been modified, affecting both housing habitability and the morphology of the neighborhood. The modifications require new financing, predominantly through savings or microcredits to escape from the financial mechanisms of bank loans. The study highlights the limitations of housing policies, recognizing the need to design a sustainable financing policy that recognizes flexibility as a key principle in the design of the VIS.