Housing Loan: Repairs and/or Improvement
What is the Housing Loan for Repairs and/or Improvement?
The Housing Loan for Repairs and/or Improvements is a lending program of the Social Security System (SSS) available either directly from the SSS or through its accredited participating financial institutions (PFIs).
For what purpose may the loan be used?
The loan may be used to finance:
- Major repairs, particularly for dilapidated and structurally unsafe housing units;
- Improvements which shall apply to:
- Extension or expansion and enhancement of economic and aesthetic value of an existing housing unit. Said improvements shall be permanently attached to the house.
- Completion of an occupied bare house
- Construction of concrete fence and steel gate
- Installation of deep well and motor pump
Who are qualified to borrow?
The principal applicant must have the following qualifications:
- 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 repair and improvement loan by the SSS or NHMFC (National Homes Mortgage and Financing Corporation).
- If with an existing member loan, must be up-to-date in amortization payments in all member loans including housing loan with the SSS at the time of filing of application for repair and/or improvement. If existing housing loan is restructured, a copy of the Supplemental Mortgage Contract shall be submitted.
How much is the loanable amount?
The maximum loanable amount is P300,000.00.
What is the interest rate for the loan?
The interest rate for the loan is 13 percent per annum. The gross receipt tax is shouldered by the borrower.
What is the term of the loan?
The loan is payable up to 20 years but it should not exceed the economic life of the house after repairs and/or improvements are introduced as determined by the SSS or PFI, nor the difference between the age of the applicant and 70.
For self-employed/voluntary members. issuance of minimum of twelve (12) post dated checks which shall be repeated every year thereafter until said loan shall be fully paid.
What are the acceptable collaterals for the loan?
The loan is secured by a first mortgage on the lot and house proposed to be repaired and/or improved. In case of loans through the PFIs, a joint first mortgage for the SSS and the PFI is required. The lot must have a clean title and registered under the Torrens System in the name of the borrower and/or his spouse. A property that is mortgaged to the SSS or the NHMFC is acceptable if the repair or improvement loan is filed directly at SSS.
Who will appraise the property?
For loans availed from PFIs, the PFI will appraise the property. If availed from SSS, SSS will appraise the property.
What are the insurance coverage requirement?
The loan should be covered by a Mortgage Redemption Insurance and Property Insurance.
What are the required documents for the loan?
The following documents should be submitted upon application:
- Mortgagor’s Application for housing loan, Credit Information Sheet and 1” x 1” ID pictures of Principal Applicant and Spouse;
- For self-employed: last 3 years ITRs with corresponding Form W-2, Confirmation Receipts and Financing Statement, Form RS-1. SSS Form E-1 and Business License;
- For voluntary member or self employed: Premium Receipts (Payment Return Form RS-5 );
- For overseas worker: Certification and Contract of Employment and Form RS-5 ;
- If has availed of SSS housing loan, Housing Loan Certification to be secured from the Real Estate Loan Accounting Department, 9th Floor, SSS main office (RELAD);
- 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*;
- Itemized scope of work with corresponding sketch plan or old building plans for the proposed repair;
- Building plans and working drawings of the proposed improvement duly signed and sealed by a Civil Engineer or Architect;
- Building and construction specifications duly signed and sealed by a Civil Engineer or Architect;
- Pictures of existing house and all portions to be repaired and/or improved;
- If existing housing loan with the SSS is a Joint Application, written conformity of the other applicant;
- Affidavit of undertaking to continue paying monthly SSS premium contributions for the duration of loan (Voluntary and Self-employed member only);
- Certified True Copy of the Original TCT issued by the Registry of Deeds.
*Not required if presently mortgaged with SSS.
- Application Fee – P5 per P1,000
- Inspection Fee – P500 for both within and outside Metro Manila
Where should a member file his application form?
Application forms should be filed at the Real Estate Department, 5/F, SSS Bldg. East Avenue, Quezon City or with any of the following SSS-accredited PFIs:*
Where should a member file his application form?
Application forms should be filed at the SSS main office: Real Estate Department, 5/F, SSS Bldg. East Avenue, Quezon City; or with any of the following SSS-accredited PFIs:*
Bank of Florida
San Fernando, Pampanga
#349 Sen. Gil Puyat Avenue, Makati City
Union Bank of the Philippines
SSS Bldg. Ayala cor. Herrera St.
Contact Person: Tess Eusebio
Tel. No. 840-01-14
*This list is subject to change