Expanded Housing Loan Program (EHLP)

- This is the HDMF’s own mortgage finance program.

- Exclusively caters to HDMF members.
- Borrowers may secure a loan directly from HDMF or through accredited originating banks.
- Maximum loan amount is Php 500,000
Two modes of applying for housing loan:
a. Developer-assisted – the developer assists the member in loan application
b. Retail – the member applies directly to the fund
Individual Housing Loan Program (IHLP)
- Lending program of the Social Security System to provide funds through SSS-accredited participating
institutions.
- Max. loan amount is Php 500,000
- Maturity period of up to 30 yrs or less in multiples of 5
- Interest rate: Php 180,000 – 9%
above Php 180,000 – Php 500,000 – 13%
Eligible purposes of the loan:
1. Construction of new detached or attached house, row house or townhouses unit
2. Purchase of newly constructed residential unit, or unit not over one year old on a first occupancy
basis
3. Construction of new house with payment of lot balance
4. Purchase of existing residential foreclosed by SSS,GSIS, Pag-ibig, and other government financial
institutions
5. Row house or townhouse is allowed provided the units are separated by a min. of six-inch thick
CHB common wall extended beyond the roof at least 0.30 m.
6. Core house is allowed as long as it has four walls and a roof, enclosed t&b, kitchen
7. Four-inch CHB exterior walls are allowed provided they are constructed with columns and beams.
General Requirements: EHLP & IHLP
1. Active member and has paid contributions for at least 24 months
2. Not more than 65 yrs. Old
3. Has not been previously granted any housing loan
4. Up-to-date in the payment of contributions and loan remittances
Housing Subsidy Programs: Unified Home Lending Program (UHLP)
There are three levels of transactions in UHLP:
1. SSS, GSIS and HDMF negotiate with NHMFC on an annual funding commitment to UHLP.
2. NHMFC will re-lend the funds to eligible home buyers through accredited loan originators
(financial institutions, developers and corporate employers).
3. NHMFC collects from the borrowers the monthly loan payments
Loan Packages under UHLP: (Maturity of 25 yrs.)
1. Php 150,000 loan; interest rate of 9%
2. Over Php 150,000 up to Php 225,000; interest rate of 12%
3. Over Php 225,000 up to Php 375,000; interest rate of 16%
Housing Subsidy Programs: COMMUNITY MORTGAGE PROGRAM (CMP)
- CMP is a mass housing program that seeks to respond to land tenurial problems in marginalized
communities.
- To be eligible for loans under the program, the beneficiaries must first organize themselves into
associations that must be accredited by the NHMFC.

Stages of financing under CMP: (Maturity of 25 yrs.)

1. Land Acquisition
2. Site Development
3. Individual Housing Loans
Loan amount base on various activities:
1. Php 30,000 for acquisition of undeveloped property
2. Php 45,000 for acquisition of a developed property
3. Php 80,000 for lot acquisition, development and house construction or improvement
Housing Subsidy Programs: SOCIAL HOUSING DEVELOPMENT LOAN PROGRAM (SHDLP)
- In-house program of the NHMFC, which aims to complement the UHLP through financial assistance to
private developers, NGO, landowners and LGUs in undertaking social housing projects.
- Developmental loans are granted to housing projects with at least with at least 20 units, with selling price
not exceeding Php 150,00 with interest rate of 14%.
Housing Subsidy Programs: ABOT-KAYA PABAHAY FUND
- Aims to enhance the affordability of low-cost housing.
- RA 7835 provided the capital for Abot-Kaya Pabahay Fund at Php 5 billion to be sourced from the
National Government appropriations.

Housing Assistance Packages:

1. Loan Amortization Support
- Outright subsidy to low-income families and applies to loans having a maturity period not
less than 15 years with a fixed rate between 9-12%
- Granted to two types of borrowers
Level A
- monthly income not exceeding Php 6,000 applying for loans not exceeding Php
144,000
- support declines by 5% per year, from 35% to 14% on the fifth year
Level B
- monthly income not exceeding Php 7,000 applying for loans not exceeding Php
180,000
- support declines from 25 % to 7% on the fifth year
2. Developmental Loan/Financing
- Geared towards government and private proponent of low-cost housing projects.
- To avail of the loan, a project should have a minimum of 20 housing units, 75% of which
should have a selling price not exceeding Php 144,000, the other 25% should be priced not
more than Php 180,000.
- Maximum loan is set at not more than 80% of the total project development cost with
interest rate of 9% per annum.
3. Cash Flow Guarantee
- Managed by HGC, it aims to eliminate credit risks for SSS, GSIS, and HDMF.
4. Interest Subsidy and Liquidity Support
- Serves as an alternative mechanism for sourcing housing funds under NHMFC.
Issues and Problems
1. Borrowers take a housing loan on the basis of their monthly incomes and contributions and not on their
capacity to repay the loan.
2. At present private lenders do not provide financing for low-cost housing.
3. Conflict of fund appropriation from Government agencies.
4. Overlapping of housing programs.
5. Private developers are getting delays in reimbursement from housing agencies.
6. Private developers tend to provide substandard housing units and defective infrastructures.
Terminologies
1. Amortization – periodic payment of the principal amount and interest on a liability
2. Foreclosure – an enforcement process in which the lender under a defaulted mortgage takes the title
to the property for the purpose of selling it to recoup money owed under the mortgage
3. Mortgage – is a pledge of real estate collateral to secure a debt, a legal document describing and
defining the pledge, also referred to as a deed of trust
4. Mortgagee – lender in a mortgage transaction
5. Mortgagor – borrower in a mortgage transaction
6. Remittance – the act of sending money in payment