How to Avail SSS Direct Housing Loan Facility for OFWs

One of the main goals of Filipinos working abroad is to secure the future of their families. However, it is a sad story that still a lot of Overseas Filipino Workers finish their contracts without ending up with any investments.

To support OFWs, the Social Security System offers Direct Housing Loans Facility for Overseas Filipino Workers. It supports the government’s initiative to provide shelter programs thru low-cost and socialized housing.

Who can avail of this Housing Loan? You should be any of the following.

– Currently deployed with a contract processed through the Philippine Overseas Employment Administration (POEA) or authenticated by the Philippine Embassy abroad;
– Has an employment contract and is awaiting renewal/deployment, however, release of loan shall be made upon renewal/deployment;
– Filipino national but now a citizen or immigrant of a foreign country and is interested in buying a housing unit for his/her family here in the Philippines; and
– A long-term resident overseas Filipino who wish to avail of housing packages either for himself/herself when he/she retires or visits the Philippines and/or for his/her extended families

You may use the Loan for any of these purposes:

1. Construction of a new house or dwelling unit on a lot owned by the applicant that is not obtained through mortgage and has no impending legal obligations.
2. Purchase of a lot and construction of a new house or dwelling unit
3. Purchase of an existing residential unit which may be a house and a lot, a condominium unit or a townhouse.

The property acquired thru the loan should be occupied by the owner- borrower or his/her immediate family member upon purchase of the unit.

To be an eligible borrower, you need to meet the following requirements;

1. Member is a certified OFW;
2. Member is a voluntary paying member of SSS;
3. Member has at least 36 months contribution and 24 continuous contributions in period prior to application;
4. Member is not more than 60 years old at the time of application and must be insurable. A members whose age is 60 years at time of application will have a maximum loan term of five years;
5. Member was not previously granted an SSS housing loan;
6. Member has not been granted final SSS benefits;
7. Borrower and spouse are updated in the payment of their other SSS loan(s), if any.

The husband/wife of an existing borrower may still qualify for an SSS housing loan if the loan of the latter was obtained prior to the date of marriage and is not delinquent.

The maximum loanable amount is Php 2,000,000, but are subject to the following factors.
It should be the lowest amount based on the following;
1. Appraised value of collateral of at least 70% but not to exceed 90%
2. Borrower’s capacity to pay
3. Actual need of the borrower based on the contract to sell/scope of work and bill of materials evaluated by the SSS

The loan is payable in multiples of five years up to a maximum of 15 years granted that 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.

The member-borrower shall repay the loan via post-dated checks (PDCs) during the term of the loan. It shall be submitted for the first twelve months and submitted every year thereafter until fully paid. Payment through PDCs shall be subject to internal rules and guidelines (Office Order No. 2011-028).
The collateral for the loan is the property covered by a Transfer Certificate Title/ Original Certificate of Title/ Condominium Certificate of Title issued by the Registry of Deeds. It shall be covered by a Home Guaranty Corporation (HGC).

Here is the annual interest rate for the Direct Housing Loan.

Interested to apply for the OFW Direct Housing Loan? Get ready with the following requirements;

A. Original copy of the following:
1. Mortgagor’s Application for Housing Loan with 1” x 1” ID pictures of principal applicant and spouse
2. Certificate of Loan Eligibility – (P100.00 Service Fee)
3. Certification from POEA/Department of Labor and Employment (DOLE)/Overseas Workers Welfare Administration (OWWA)/SSS Foreign Representative Office or Philippine Embassy/Consular Office
4. Deed of Sale or Contract to Sell with statement of latest balance for purchase of lot or house and lot
5. Appraisal Report from HGC-accredited appraisal companies
6. Certificate of Acceptance and Occupancy duly signed by the borrower if house is 100% complete at the time of loan filing
7. Duly notarized Special Power of Attorney (if filing is through a representative)
B. Original and photocopy of the following:
1. Latest Contract of Employment and latest Employer’s Certification duly authenticated by the Philippine Consulate
2. Owner’s copy of the TCT/OCT/CCT
3. Certified true copy of TCT/OCT/CCT issued by the Register of Deeds
4. Latest Property Tax Declaration and Realty Tax Receipt
C. Other documents:
1. Lot plan with vicinity map duly signed and sealed by Registered Surveyor or Geodetic Engineer (Blue Print)
2. Building plans/specifications/picture of the house (Blue Print)
3. A set of 12 PDCs covering 12 monthly installments and shall be repeated every 12 months thereafter until the loan is fully paid
4. Tax Mapping/Subdivision Plan
5. Affidavit of Undertaking to continue paying monthly SSS premium contributions for the duration of housing loan

Take note of the following when applying for your loan. Be ready to present the original and secure one photocopy of the documents in case authentication is needed. You also need to be updated with all your SSS loan payments. You may also be required to present additional requirements as deemed necessary by SSS.
You would need to pay an Application Fee which is ½ of 1% of the loan amount or Php 500 whichever is higher, but would not exceed Php 3, 000. An Inspection Fee of Php 500 is also required.

You may file your loan application at any SSS cluster branch or at the Housing and Business Loan Department, 5/F, SSS Bldg., East Avenue, Diliman, Quezon City.