LOANS FOR INDIVIDUAL HOUSING

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

Drawdowns will be done by the PFI in batches of ten applications for review by the SSS Real Estate Department.

What are the eligible purposes of the loan?
Loans may be used to:

• construct a new detached or attached house, rowhouse, or townhouse unit to be built in accordance with the existing city and municipal ordinance and national building code;
• construct a new house with payment of lot balance;
• purchase a newly constructed residential unit, or, of a unit not over one year old on a first occupancy basis; and,
• Purchase of an existing residential unit foreclosed by the SSS, Government Service Insurance System, Pag-IBIG Fund, Home Guaranty Corporation, and other government financial institutions.
• A rowhouse or townhouse unit is allowed provided the units are separated by a minimum 6" thick CHB common wall extended beyond the building and roof lines by at least 0.30 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.

Who may borrow under the loan program?
A member is qualified to borrow if:

• he is an active SSS member and has paid at least 12 months continuous premium contributions or at least 24 months total contributions;
• he is not more than 65 years old;
• he has not been previously granted a housing loan by the SSS, Government Service Insurance System, National Home Mortgage Finance Corp. or Home Development Mutual Fund (Pag-IBIG);
• he is up-to-date in the payment of all due SSS loan amortizations; and
• his employer must be up-to-date in the payment of monthly contributions and loan remittances.

How much is the loanable amount?
The maximum loanable amount is P500,000, or, whichever is lowest of the amount applied for, the amount justified by the paying capacity, the loan value of the collaterals, and the actual need as determined by the bank.

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

What is the interest rate of the loan?
For loans up to P180,000, the interest rate is nine per cent per annum, fixed for the term of the loan.
For loans over P180,000 up to P500,000, the interest rate is 13 per cent per annum, subject to review every five years.