The Direct Housing Loan Facility for Overseas Filipino Workers is designed to support the Government’s shelter program, which aims to provide socialized and low-cost housing to overseas Filipino contract workers.
The allowable purposes for a loan are as follows:
- Construction of a new house or dwelling unit on a lot owned by the applicant free from lien/encumbrances;
- Purchase of a lot and construction thereon of a new house or dwelling unit; and
- Purchase of an existing residential unit which may be a house and lot, a condominium unit or a townhouse.
The property subject of the loan must be occupied by the owner-borrower or his/her immediate family member upon purchase of the unit.
A member is qualified to borrow if he meets the following eligibility requirements:
- Member is a certified Overseas Filipino Worker;
- Member is a voluntary OFW member of SSS;
- Member has at least 36 months contribution and 24 continuous contributions in the period prior to application
- Member is not more than 60 years old at the time of application; Members age 60 years at time of application will have a maximum loan term of 5 years
- Member was not previously granted an SSS housing loan
- Member has not been granted final SSS benefits
- Borrower and spouse is updated in the payment of their other SSS loan(s), if any
The spouses of an existing borrower may still qualify for an SSS housing loan if the loan of the existing borrower was obtained prior to the date of marriage and the loan is not delinquent.
An Overseas Filipino Worker (OFW) is a private sector worker who is:
- Currently deployed with a contract processed through the POEA or authenticated by the Embassy abroad
- With employment contracts which are awaiting renewal/deployment; however, release of loan shall be made upon renewal/demployment
- A citizen or immigrant of a foreign countries but is interested in buying a housing unit for his family who is still in the country
- A 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
The maximum loanable amount is P2,000,000.00. The loan amount granted shall be the lowest amount based on the following factors:
- Appraised value of collateral of at least 70% but not to exceed 90%
- Borrower’s capacity to pay
- Actual need of the borrower based on the contract to sell/scope of work and bill of materials evaluated by the SSS
Housing Loan Type Amount of Loan Socialized Housing Loan Up to P400,000.00 Low Cost Housing Loan Over P400,000.00 up to P1,000,000.00
Over P1,000,000.00 up to P1,500,000.00
Over P1,500,000.00 up to P2,000,000.00
A maximum of three (3) 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 they are related within the first (1st ) civil degree of consanguinity or affinity.
The loan is payable in multiples of five (5) years up to a maximum of fifteen (15) years.
However, the loan term shall be subject to the following:
- The principal borrower’s age shall not exceed 65 years old at the time of loan maturity; and
- The loan term shall not exceed the economic life of the building as determined by the SSS appraiser.
Amount of Loan Interest Rate Up to P400,000.00 8.0% p.a. Over P400,000.00 up to P1-M 9.0% p.a. Over P1-M to P1.5-M 10.0% p.a. Over P1.5-M to P2-M 11.0% p.a.
The collateral for the loan is the Transfer Certificate Title/Original Certificate of Title/ Condominium Certificate of Title (TCT/OCT/CCT) issued by the Registry of Deeds in the name of the principal borrower free from liens and encumbrances.
The loan shall be secured by a first Real Estate Mortgage (REM) on the house and lot to be financed. The REM shall be annotated on the member borrowers TCT/OCT/CCT and shall be registered with the appropriate Registry of Deeds. The loan shall also be covered by an HGC guaranty.
In case the purpose of the loan is the purchase of residential condominium unit prior to actual construction (pre-selling), other residential property acceptable to SSS shall be submitted as collateral to secure the loan.
The following are not acceptable as collateral:
- Land type other than residential
- Less than 15 sq. meters floor area, in case of condominium
- Less than 32 sq. meters lot area
- Road right of way is less than 1.5 meters
- Free/Homestead/Miscellaneous Sales Patent Titles
The following documents should be submitted upon application:
- Original copy of the following:
- Mortgagor’s Application for Housing Loan with 1” x 1” ID pictures of Principal Applicant and Spouse
- Certificate of Loan Eligibility (CLE) – (P100 Service Fee)
- Certification from POEA/DOLE/OWWA/SSS Foreign Representative Office or Philippine Embassy/Consular Office
- Deed of Sale or Contract to Sell with statement of latest balance for purchase of lot or house and lot
- Appraisal Report from Home Guaranty Corporation accredited appraisal companies
- Certificate of Acceptance and Occupancy duly signed by the borrower if house is 100% complete at the time of loan filing
- Duly notarized Special Power of Attorney (if filing is through a representative)
- Original and Photocopy of the following:
- Latest Contract of Employment and latest Employer’s Certification duly authenticated by Phil. Consulate
- Owner’s copy of the TCT/OCT/CCT
- Certified true copy of TCT/OCT/CCT issued by the Register of Deeds
- Latest Property Tax Declaration and Realty Tax Receipt
- Other documents:
- Lot plan with vicinity map duly signed and sealed by Registered Surveyor or Geodetic Engineer (Blue Print)
- Building plans/specifications/picture of the house (Blue Print)
- A set of twelve (12) postdated checks covering twelve (12) monthly installments and shall be repeated every twelve (12) months thereafter until the loan is fully paid
- Tax Mapping/Subdivision Plan
- Affidavit of Undertaking to continue paying monthly SSS premium contributions for the duration of housing loan
- Present original and submit one (1) photocopy of required documents for authentication purposes
- Applicant and spouse must be up-to-date in the payment of all existing loan accounts with SSS subject to verification by the SSS
- SSS reserves the right to require additional documents if deemed necessary
- Application Fee – ½ of 1% of loan amount or P500 whichever is higher but not toexceed P3,000.00 to be deducted from the first loan release.
- Inspection Fee – P500 for both within and outside Metro Manila
- To the nearest SSS cluster branch or the Housing and Business Loan Department, 5/F, SSS Bldg., East Avenue, Diliman, Quezon City.
The OFW can repay the loan by issuing post-dated checks (PDCs) during the term of the loan. Initial submission of PDCs shall be for the first twelve (12) months and replaced every year thereafter until fully paid. However, payment through post-dated checks shall be subject to Office Order No. 2011-028.