Home-A-Loan 2: How To Apply For An SSS Housing Loan

Consider yourself lucky these days if you are employed in a private company with a job you love and that pays enough. For one, you have found for yourself that dream career. For another, as a Social Security System (SSS) member it is only a matter of filling up the housing loan application form before you get your dream home.

The Social Security System (SSS) is tasked to look after the welfare of those who are working in the private sector. One of their goals is to provide decent housing for employees of private firms including Overseas Filipino Workers (OFW) via its affordable Housing Loan Programs.

The SSS Individual Housing Loan Program and the Direct Housing Loan Facility for Overseas Filipino Workers are two of the lending programs of the SSS that caters to the housing needs of the OFWs as well as employees of private firms.

What is the SSS Individual Housing Loan Program?

The Individual Housing Loan Program is a lending program of the Social Security System (SSS) established to provide funds thru SSS-accredited participating financial institutions (PFIs).

Purposes of the Loan

• Construct a new house or dwelling unit on a lot owned by the applicant free from liens/ encumbrances;

• Purchase a lot and construction thereon of a new house or dwelling unit;

• Purchase an existing residential unit which may be a house and lot, a condominium unit or a townhouse; and

• Purchase an existing residential unit foreclosed by SSS, GSIS, HDMF (Pag-Ibig), HGC and other GFIs.

• A row house or townhouse unit is allowed provided the units are separated by a minimum of 4” thick CHB common wall extended up to roof lines and 6” thick CHB and walls extended beyond the building and roof lines by at least one meter.

• A core house is allowed as long as it has four walls and a roof, enclosed toilet and bathroom, kitchen and door and window covers. Four-inch CHB exterior walls are allowed provided they are constructed with concrete columns and beams

Borrower's Eligibility

• He is an active SSS member and has paid at least twelve (12) months continuous contributions or at least twenty-four (24) months total contributions;

• He is not more than 65 years old;

• He has not been previously granted a housing loan by the SSS, either directly or through conduit institutions, refund of contributions, retirement or total permanent disability benefit;

• He is up-to-date in the payment of all SSS contributions and other loan amortizations; and

• If employed, his employer must be up-to-date in the payment of monthly contributions and loan remittances.

Loanable amount

The maximum loanable amount is P1,000,000.00

Required documents for the loan

• Loan application

• Certificate of employment and compensation or updated employment contract

• Certificate of Loan Eligibility (CLE) – (P100 Service Fee)

• Authenticated copies of latest income tax returns with W-2 or financial statements for the last three years if income is from business

• Authenticated copy of transfer certificate of title (TCT) including encumbrance of real estate mortgage

• Tax declaration and latest tax receipt

• Lot plan (with vicinity map) of the project site

• Building plans (floor plans and elevation only) and specifications

• Building permit

Term of the loan

The loan is payable in multiples of five (5) up to a maximum of thirty (30) years, but not to exceed the economic life of the house and the difference between the age of the applicant and 70.

Allowable collateral for the loan

The loan shall be secured by a first mortgage on the house and lot to be financed. However, the lot must be:

• Registered under the Torrens System in the name of the applicant and/or his spouse;

• Without any liens or encumbrances; and

• Accessible through an existing road, the development of which should be at least macadam with the drainage system, with at least two meters right-of-way, graded and passable.

Borrower can avail of the interim financing for his loan

The individual borrower may avail of interim financing from the bank. The bank must file the loan application with the SSS within the 120-day period from the time the interim financing was granted.

Interest of the loan

Up to P300,000.00 – 9% p.a. Fixed for the term of the loan

Over P300,000.00 up to P500,000 – 13% p.a. Subject to review every five (5) years.

Over P500,000.00 up to P1,000,000.00 – 14% p.a. Subject to review every (5) years.

Required insurance coverages for the loan

The loan should be duly covered by Mortgage Redemption Insurance and Property Insurance.

What is the Direct Housing Loan Facility for Overseas Filipino Workers?

The Direct Housing Loan Facility for Overseas Filipino Workers is a housing loan program of the Social Security System (SSS) that aims to provide socialized and low-cost housing to workers in the private sector who are members of duly registered overseas Filipino workers.
Who are OFWs?

• Those currently deployed with a ontract processed through the POEA or authenticated by the Embassy abroad.

• Those with employment contracts which are awaiting renewal/deployment; however, release of loan shall be made upon renewal/deployment.

• Those citizens or immigrants of foreign countries but are interested in buying housing units for their families who are still in the country.

• Those long-term resident overseas Filipinos who wish to avail of housing packages either for themselves when they retire or when they visit the Philippines and/or for their extended families.

Purposes of the Loan

To construct a new house on a lot owned by the applicant that is free from lien or encumbrance; To purchase a lot and construct a new house on the lot; To purchase an existing residential unit, which may be a house and lot, a condominium, or a townhouse; and To purchase an existing residential unit foreclosed by the SSS, Government Service Insurance System, Pag-IBIG Fund, Home Guaranty Corporation, and other government financial institutions. Borrower's Eligibility A certified overseas Filipino worker; An active SSS member and has paid at least 12 months continuous contributions or at least 24 months total contributions; Not more than 65 years old; Has not been previously granted a housing loan by the SSS, refund of contributions, retirement or total permanent disability benefit and Is up-to-date in the payment of all SSS contributions and loan amortizations. Loanable Amount For the socialized housing package, the loanable amount is P225,000. For the low-cost housing package, the loanable amount is any amount over P500,000 up to P1,000,000. The member may borrow either the amount applied for, or the amount justified by the paying capacity, whichever is lower. In no case shall the monthly amortization exceed 40 per cent of the net disposable income, which is defined as gross verifiable monthly family income less statutory deductions and payments for outstanding loans. A minimum of three qualified SSS members may be tacked-in for a single loan up to the combined maximum individual availment for the loanable amount secured by the same collateral, provided the borrowers are related within the first civil degree of consanguinity or affinity and are SSS members in good standing. Required Documents for the Loan Mortgagor's Application for Housing Loan with 1" x 1" ID pictures of principal applicant and spouse ; Certificate of Loan Eligibility; Latest income tax return together with Form W-2 and Confirmation Receipt; Certification of membership from the workers' organization (for trade union members) or from the Philippine Overseas Employment Administration (POEA) for OFWs; Certified true copy of two latest monthly payslips; Latest certification and contract of employment duly authenticated by the Philippine Consulate for OFWs; Owner's copy of the Original/Transfer Certificate of Title; Latest property tax declaration and realty tax receipt ; Lot plan with vicinity map duly signed and sealed by registered surveyor or geodetic engineer (blueprint); Building plans, specifications, or picture of the house (blueprint); Confirmation of completion and appraisal from Home Guaranty Corp.; Authority to deduct/Memorandum of Agreement for Mandatory Payroll Deduction, if employed member; Certificate of acceptance and occupancy duly signed by the borrower if house is 100 per cent complete at the time of loan filing; Other documents that may be required Term of the Loan The loan is payable in multiples of five years up to a maximum of 30 years, but not to exceed the economic life of the building, and, the difference between the age of the borrower and 70, whichever is shorter. Allowable collateral for the loan The loan should be secured by a first Real Estate Mortgage (REM) on the house and lot to be financed, and by an HGC guaranty. The REM shall be annotated on the member-buyer's transfer certificate of title (TCT), and registered with the appropriate Registry of Deeds. Interest of the loan For loans up to P225,000, the interest rate is nine per cent per annum, fixed for the term of the loan. For loans over P225,000 up to P500,000, the interest rate is 13 per cent per annum, subject to review every five years. For loans over P500,000 up to P1,000,000, the interest rate is 14 per cent per annum, subject to review every five years. Required Insurance coverages for the loan The loan shall be covered by Mortgage Redemption Insurance (MRI) and Property/Fire Insurance (P/FI). Note: Those who are self-employed can also avail of this SSS housing loans. For more information SSS Housing Loan Programs contact the SSS Real Estate Department in Quezon City with telephone number 920-64-01 local 5121 to 5128 or at www.sss.gov.ph/ sssemail@info.com.phThis e-mail address is being protected from spam bots, you need JavaScript enabled to view it or to the SSS office nearest you.