A Guide on How to Apply for a Housing Loan in SSS

Purchasing a home in the Philippines is not as challenging as growing real estate prices suggest! Individuals rarely pay the whole worth of a home in a single transaction, even though property valuations are often in the millions. Therefore, if you do not have millions in your bank account, do not despair; you can still finance a house purchase. Indeed, the government provides assistance to individuals who wish to purchase a property, and the Social Security System (SSS) is one of them. 

What is an SSS Housing Loan?

The Social Security System (SSS) Housing Loan was established to provide low-cost housing, home loan assumption, and house repair to working Filipinos. The Social Security System, a state-run social insurance program, issues an SSS Housing Loan. While SSS Housing Loans are not as prevalent as Pag-IBIG Housing Loans, they do have a number of advantages.

You may utilize an SSS Housing Loan to acquire a lot and construct a new house; to acquire an existing residential unit such as a house and lot, condominium, or townhouse; or construct a new house on an unencumbered lien-free lot that you own.

How to Apply for an SSS Housing Loan 

SSS offers housing loan options to qualified members. Take note that all information below can  be found on the SSS website.

Direct Housing Loan Facility for Workers’ Organization Members

The Direct Housing Loan Facility for Workers’ Organization Members (WOMs) aims to provide socialized and low-cost housing to workers who are bonafide members of duly registered and accredited workers’ organizations.

WOMs refer to any association of workers in the private sector duly registered with the DOLE, the Securities and Exchange Commission, or the Cooperative Development Authority. It shall include any trade union center, federation, national union, local/chapter, or independent union as defined in Book V of the Labor Code.

Eligible Borrowers

An applicant is qualified to apply for an SSS housing loan if he meets the following eligibility requirements:

1. Member is a bonafide member of a registered workers’ organization in the private sector;
2. Member must be a member of the SSS;
3. Member has at least 36 months premium contribution and 24 continuous contributions in a period prior to application
4. Member not more than 60 years old at the time of application and must be insurable. Members age 60 years at the time of application will have a maximum loan term of 5 years.
5. Member was not previously granted an SSS housing loan.
6. Member has not been granted final SSS benefits.
7. Member and spouse are updated in the payment of their other SSS loan(s), if any.

The spouse 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.

Loan Purposes

1. An SSS housing loan may be used for the following purposes:
   1. To construct a new house or dwelling unit on a lot owned by the applicant free from liens/encumbrances;
   2. To purchase a lot and construct thereon a new house or dwelling unit;
   3. To purchase an existing residential unit which may be a house and lot, a condominium unit, or a townhouse.

Direct Housing Loan Facility for Overseas Filipino Workers

The Direct Housing Loan Facility for Overseas Filipino Workers (OFW) is designed to support the Government’s shelter program, which aims to provide socialized and low-cost housing to overseas Filipino contract workers.

An 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 that are awaiting renewal/deployment, however, the release of loan shall be made upon renewal/employment.
• A Filipino national who is now a citizen or immigrant of a foreign country 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

Eligible Borrowers

1. OFW member is qualified to borrow if he meets the following eligibility requirements:
   1. Member is a certified Overseas Filipino Worker;
   2. Member is a voluntary OFW member of SSS;
   3. Member has at least 36 months of contribution and 24 continuous contributions in the period prior to application
   4. Member is not more than 60 years old at the time of application and must be insurable. Members age 60 years at the time of application will have a maximum loan term of 5 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
2. 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.

Loan Purposes

1. The allowable purposes for a loan are as follows:
   1. Construction of a new house or dwelling unit on a lot owned by the applicant free from lien/encumbrances;
   2. Purchase of a lot and construction thereon of a new house or dwelling unit; and
   3. Purchase of an existing residential unit which may be a house and lot, a condominium unit, or a townhouse.

Note:

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

Housing Loan for Repairs or Improvements

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 thru its accredited participating financial institutions (PFIs).

Eligible Borrowers

1. The principal applicant must have the following qualifications:
   1. The borrower must be a member of SSS who has at least 36 months of contributions and 24 continuous contributions in the period prior to application.
   2. The age of the member is not more than 60 years old at the time of application.
   3. Member was not previously granted a repair and/or improvement loan by the SSS or NHMFC.
   4. Member has not been granted final SSS benefits.
2. Borrower and spouse are updated in the payment of their other SSS loan(s) if any.

Loan Purposes

The loan may be used to finance any of the following:

1. Major repairs, particularly for dilapidated and structurally unsafe housing units;
2. Improvements which shall apply to:
   1. Extension or expansion and enhancement of the economic and aesthetic value of an existing housing unit. Said improvements shall be permanently attached to the house.
   2. Completion of an occupied bare house.
   3. Construction of concrete fence and steel gate.
   4. Installation of a deep well and motor pump.

Assumption of Mortgage

Assumption of Mortgage is a lending program of the Social Security System (SSS) allowing a member in good standing to assume the updated principal balance of an existing SSS housing loan.

Eligible Borrowers

1. The principal applicant must have the following qualifications:
   1. The borrower must be a member of SSS who has at least 36 months of contribution and 24 continuous contributions in a period prior to application
   2. Is not more than 60 years old at the time of application.
   3. He was not previously granted an SSS housing loan.
   4. He has not been granted final SSS benefits.
   5. Borrower and spouse are current in the payment of their other SSS loan(s) if any.

You may contact Bilkenn to learn more about housing loan in SSS

Use these government benefits to your advantage. New initiatives from these agencies may be a good fit for you from time to time. There is plenty of information available online. Knowing if you are eligible for any government programs or benefits is critical. Local branch staff members are available for questions about your accounts.