Aside from the Home Development Mutual Fund, we can also rely on the Social Security System for our Home Improvement Needs. However, not many are aware of this benefit that they can avail to financially assist them.
If you are looking to have some major repairs for your living unit, including extending, expanding or enhancing economic and aesthetic value of an existing housing unit, you might consider applying for this loan. Completing an occupied bare house, constructing concrete fence and steel gate and installation of deep well and motor pump, can also be covered by this loan program.
To be an eligible borrower, you need to meet the following qualifications:
The borrower must be a member of SSS who has at least 36 months contributions and 24 continuous contributions in the period prior to application.
Age of member is not more than 60 years old at the time of application.
Member was not previously granted a repair and/or improvement loan by the SSS or NHMFC.
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 maximum loanable amount is Php 1,000,000.00 or the following conditions;
Appraised value of collateral of at least 70% but not to exceed 90%;
Borrower’s capacity to pay; and
Actual need of the borrower based on the contract to sell/scope of work and bill of materials evaluated by the SSS.
The interest rate is 9 percent pe annum. Loans with a payment term of not more than 15 years shall bear a fixed interest rate. However, those with payment terms beyond 15 years shall bear a fixed interest rate only during the first 15 years of the loan term but shall be subject to re-pricing every five years starting on the anniversary month of the 15th year.
The loan is payable in multiples of five years up to a maximum of term of 20 years. However, it must meet the following conditions:
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 house after repairs and/or improvements are introduced as determined by the SSS appraiser.
Make sure to prepare the following documents when applying for the loan program:
-Application for Direct House Repair and/or Improvement Loan (2 copies) and SS ID Cards of the principal applicant and his/her spouse, if applicable.
-In the absence of the SS ID Card, any two (2) valid IDs with signature, at least one (1) with photo (original and photocopy for authentication)
-For employed borrower, latest Income Tax Return (original and photocopy for authentication) and Certification of Employment and Compensation duly signed by the employer’s SSS authorized signatory (original copy) together with two (2) latest monthly payslips
-For Self-employed or Professional, Income Tax Returns and Financial Statements for the last three (3) years (original and one photocopy)
-For overseas workers, the Contract of Employment and Certification of Employment and Compensation duly authenticated by the Philippine Consulate or SSS Foreign Representative
-Certified true copy of the Original/Transfer/Condominium Certificate of Title (OCT/TCT/CCT) issued by the Registry of Deeds together with owner’s duplicate copy*
-Latest Tax Declaration of Real Property (land and building) with the Official Receipt of Realty Tax Payment (original and one (1) photocopy)
-Lot/Location Plan prepared, signed & sealed by a licensed geodetic engineer. The plan should be prepared in a standard Bureau of Lands form (blueprint or whiteprint copy in 15” x 20” size) with the following:
*Sketch of the lot with description of its boundaries;
*Lengths and bearings of the tie line and sides of the lot; and
*Vicinity map w/ landmarks, street pattern, street names and lot distance as reckoned/based from the lot to the nearest street intersection (2 copies)
-Consolidation-subdivision plan approved by the Land Registration Authority or Bureau of Lands/DENR-NCR (15” x 20” size; primary document) (1 copy)
-Complete set of building plan (20” x 30” size; blue/whiteprint copy) as approved by the Building Official with signature of the owner/applicant and signed & sealed by the respective licensed engineers (Architectural Plans by the Architect/Civil Engineer, Structural Plans by Civil/Structural Engineer, Sanitary Plans by Civil/Sanitary Engineer and Electrical Plans by Electrical Engineer).
-For existing/completed houses, as-built building plans duly signed & sealed by respective engineer or architect with conformity of the owner/applicant (2 copies)
-Specifications and Bill of Materials & Labor must be signed & sealed by a licensed civil engineer or architect with owner’s conformity, for loans over P100,000. While for loans P100,000 and below the signature and seal by a licensed civil engineer or architect are no longer required. (original and one (1) photocopy)
-Scope of Works showing list/itemized works to be done according to priority, prepared and signed by owner, civil engineer or architect. (original and one (1) photocopy)
-Building or Renovation Permit issued/approved by the Building Official with Locational Clearance, Electrical Permit, Sanitary/Plumbing Permit and corresponding official receipts of payments (original and one (1) photocopy)
-Pictures of existing collateral; the existing house and lot (1st – Front and one side, 2nd – Rear and other side, 3rd – Kitchen counter, and 4th – Toilet and Bath Pictures)
-For existing housing loan with the SSS under Joint Application (duplex unit), written conformity/consent of the joint applicant/co-owner mortgagor pertaining to this repair and/or improvement housing loan availment (original copy)
-For Condominium Units:Floor plan of the specific condominium unit, scaled with size dimensions (20” x 30” size, blue/whiteprint copy) signed & sealed by licensed architect or civil engineer
-Architectural Plans showing the plan of the specific floor where the unit is located; Floor plan should be scaled with size dimensions
-First page of the condominium building plans showing the site development plan, vicinity map, etc., as approved by the Building Official
-Affidavit of undertaking to continue paying monthly SSS Premium Contributions for the duration of loan for Voluntary and Self-employed member only.
* Not required if presently mortgaged with SSS.
• Present original and a photocopy of required documents for authentication purposes
• Applicant and spouse must be up-to-date in all existing loan accounts with SSS subject to verification by the SSS Housing and Business Loan Department (HBLD)
• SSS reserves the right to require additional documents if deemed necessary
Once you completed the required documents, you may submit your application to the nearest SSS branch.
A processing fee equivalent to 1/2 of 1% of loan amount of Php500 whichever is higher, but not exceeding Php 3,000 will be deducted from the first loan release. There will also be an inspection fee of P500 to be shouldered by the borrower.