1.

Social Security System (SSS) Housing Loans

The official seal of the Social Security System (SSS)

When you think of the SSS, it’s usually the pension you’d get after retirement that
you think of. SSS offers more than a monthly retirement benefit, they also provide
benefits for business and housing loans. To date, they’ve given four options for
housing loans that you can choose from:

A. Direct Housing Loan Facility for Workers’ Organization Members

This loan is specifically catered to provide low-cost housing for loyal members of
workers’ organization members (WOMs). WOMs refers to DOLE, Securities and
Exchange Commission, or Cooperative Development Authority-registered
associations of workers in the private sector. Specifically, organizations such as trade
union center, federation, national union, local/chapter or independent union as
defined in Book V of the Labor Code of the Philippines.
B. Direct Housing Loan Facility for OFWs

If you are an Overseas Filipino Worker (OFW), you’re in luck as SSS has crafted a
loan that is specifically for employees such as yourself. SSS pin-points for essential
qualifications for this specific type of loan:

1. You are currently employed overseas with a contract that has been
processed through the POEA or one that has been authenticated by the
Embassy of your country of employment
2. Has the employment contract for renewal or deployment (Take note that
the loan will only be offered upon renewal/employment)
3. A Filipino that is already a citizen or immigrant of a foreign country but
would like to buy a home for their family who lives in the Philippines
4. Is currently an OFW with a long-term residency abroad but is planning
to purchase a home for retirement or simply as a place of residence
during visits in the Philippines

C. House Repair/Improvement Loan

If you currently own a home but feel like it needs to undergo a huge renovation or
repair ordeal, this specific option is your best bet. The house repair/improvement
loan covers those who want to upgrade their home’s aesthetic value expand their
home, complete a bare unit, construct gates or (steel) fences, or is looking into
installing deep wells or motor pumps.
This loan isn’t just available through SSS directly, they’ve also tapped accredited
participating financial institutions (PFIs) as additional options. Currently, the listed
PFIs are:

 BDO Unibank, Inc.

 Development Bank of the Philippines
 Land Bank of the Philippines
 Philippine National Bank
 Philippine Veterans Bank
 Planters Development Bank

(Kindly note that the list may be subject to change without official announcements
from SSS)

D. Assumption of Mortgage

If all the aforementioned options aren’t suited to your state, the assumption of
mortgage could be the best option. The Assumption of Mortgage provides loans to
existing SSS members with good standing to assume the updated principal balance of
an existing SSS loan.

However, it takes more than just being a current SSS member to make the cut. SSS
specifies that to be eligible you must meet the following requirements:
  Is a current member of SSS with a contribution of at least 36 months, 24
of which were made consecutively in a period before applying for the
loan
 Is not over 60 years old during the time of application
 Does not have an existing SSS housing loan
 Has not been granted final SSS benefits
 Is current in the payment of any other SSS loans (they also require for
the applicant’s spouse to be updated with SSS payments as well)

2. Government Service Insurance System (GSIS)

Housing Loans

Official seal of the Government Service Insurance System

Created by way of Commonwealth Act No. 186 that was passed in 1936, and later on
amended under Republic Act No. 8291 in 1997, the Government Service Insurance
System (GSIS) is a social security system for government employees. It ensures
members against particular contingencies in exchange for their monthly
contributions.
The institution does not directly offer housing loans as it did in the past and is
presently focused on compulsory life insurance, optional life insurance, retirement
benefits, disability benefits for work-related contingencies, and death benefits for its
government-worker members. However, it does offer housing loan products via these
two means.

A. GSIS Family Bank Home Loans

GSIS offers housing loans in a private capacity, via the GSIS Family Bank. GSIS
currently owns a 99.6 percent stake in the bank, and through it offers housing loans
to individual/single proprietors, employed individuals, OFWs, and partnerships and
corporations.

B. Home Loans via PAG-IBIG

As GSIS decided to wind down its direct lending program due to lackluster housing
performance of the pension fund, it decided to instead forge partnerships with key
shelter agencies (KSA), which has the proven expertise on home lending. No KSA is
more widely recognized than the Pag-IBIG fund, and GSIS signed a credit facility
agreement and provided an initial allocation of Php5 billion to finance the housing
loans of GSIS members and pensioners.
3. Pag-IBIG Fund Housing Loans

Official seal of the Pag-IBIG Fund or HDMF

The Housing Development Mutual Find (HDMF)—better known as the Pag-IBIG

Fund—is one of the most familiar and popular options when it comes to housing
loans. They give financial assistance to its members looking to purchase their own
home. Pag-IBIG has also been tapped by GSIS for house loan options since GSIS
stopped its loan operations in May of 2016.

What makes Pag-IBIG Fund all the more attractive is the fact that their maximum
loanable amount totals to P6million. Unlike options like SSS where each option
provided has a maximum loanable amount of P2million. But if you’re wondering
what modes you can choose from when applying for a Pag-IBIG housing loan, here
are two:
A. Retail

If you’re looking to apply for a loan from Pag-IBIG directly, retail is the way to go.
Just like other agencies that offer house loans, Pag-IBIG makes it possible for its
members to get a loan too. They’ve made this option available for a wide array of
workers—from private sector workers, OFWs or even self-employed workers. But
before one is granted, there are a few requirements to be met:

 Must be a member under the Pag-IBIG I, Pag-IBIG II, or Pag-IBIG

Overseas Program (POP) for at least 24 months and has made at least the
same amount of monthly contributions at the time of application
 Is not over 65 years old at the time of application and must be insurable
(Meaning the applicant is not older than 70 years at loan maturity)
 Has the legal capacity acquire or purchase real property

B. Assisted By Developers

Typically, when you purchase properties like condominiums, agents, brokers or

developers are hands-on in assisting you. This also includes applying for house loans.
The developer will walk you through as the buyer in applying for the said loan.
4. National Home Mortgage Finance Corporation
(NHMFC) Housing Loans

Official Seal of the NHMFC

The National Home Mortgage Finance Corporation (NHMFC) was built in response
to the need for increasing the availability of affordable housing loans. Unlike SSS or
Pag-IBIG Fund, the NHMFC is catered to the secondary market that operates or
finances for home mortgages.

There is actually only one loan program that NHMFC offers which is the Housing
Loan Receivables Program (HLRPP). This is directed more to financial institutions,
developers, LGUs, cooperatives and other private sectors. They’ve created a program
to help these organizations have more to lend to potential homeowners by liquidating
their qualified housing receivables.

Aside from this, the HLRPP also looks into helping these organizations better
manage their investment risk profiles and create more affordable housing loans with
lower interest rates to eventually extend repayment methods for borrowers such as
yourself.

5. Social Housing Finance Corporation (SHFC) Housing

Loans

Official Seal of the SHFC

The Social Housing Finance Corporations (SHFC) was born out of the transfer of
loan programs which was originally run by the National Home Mortgage Finance
Corporation (NHMFC). The SHFC is concentrated on providing housing loans and
financing for low-income families and informal settlers. Just like the NHMFC, the
SHFC works with secondary markets such as LGUs undergoing housing projects to
help those with lower incomes gain their own home.

These recipients can either receive SHFC-backed home-ownership or financing

through four options:
A. Abot Kaya Pabahay Fund-Development Loan Program (AKPF-DLP)

Those who fall under the income family bracket living in an urban city can be helped
through financing house or building construction via the AKPF-DLP. But these said
homes must be part of the community mortgage program (CMP) or a specific
housing project.

This is directed more towards corporations or LGUs that partner with developers of
socialized housing projects.

B. Community Mortgage Program (CMP)

Legally organized Informal Settlers (ISF) of depressed areas can find help in
financing their homes through the CMP. In a gist, this program seeks to help ISFs
have the opportunity to improve their neighborhood by making it financially
possible. Through this, they could eventually own their own homes.

The CMP cannot be a single person-application, it requires beneficiaries to form and

register a Community Association to qualify. But how does each beneficiary receive
rights over their property or land? It’s possible through a Lease Purchase Agreement
(LPA) with the Community Association.

Core requirements are as follows:

 Must be at least 18 years old

 Cannot be more than 60 years old during the release of the loan
C. High-Density Housing Program (HDH)

SHFC has always been active in ISF Housing Program, with this the government
provided them with P50 billion that is to be allotted for five years. So, the SHFC
opted to create the High-Density Housing Program (HDH). Their main goal is to
provide safe and flood-free homes for ISFs living within the National Capital Region
(NCR).

D. Localized Community Mortgage Program (LCMP)

The LCMP works hand-in-hand with LGUs. This community mortgage program is
designed for members of the LGU looking to acquire land which is primarily
mortgaged to SHFC. Should the said city or municipality be qualified, they will be
accredited by SHFC as partner LGU. Once this has been approved, those who fall
under the qualifications can essentially receive any of the three acquisition loan
options:

 P30,000 for site development loan (with a monthly amortization of

P205.59)
 P100,000 for lot acquisition loan (with a monthly amortization of
P685.30)
 P120,000 house construction loan (with a monthly amortization of
834.60)