GUIDE: How to Apply for a Housing Loan in SSS

Thinking about enhancing your home or undertaking major renovations? Not to worry! The Social Security System (SSS) provides a Housing Loan program for eligible members, offering a pathway to realize your property improvement goals. From understanding the eligibility requirements to navigating the application process, here’s a comprehensive guide to help you secure an SSS Housing Loan.

Table of contents

• Understanding SSS Housing Loan Eligibility
• Application Process
• SSS Housing Loan Options
  • Direct Housing Loan Facility for Workers’ Organization Members
  • Direct Housing Loan Facility for OFWs
  • House Repair/Improvement Loan
  • Assumption of Mortgage

  Understanding SSS Housing Loan Eligibility

  To qualify for an SSS Housing Loan, certain criteria must be met:

  • Ensure a minimum of 36 months of contributions to the SSS, with 24 continuous payments within the past 24 months.
  • Applicants should be within the age limit, not exceeding 60 years old at the time of application.
  • No outstanding SSS loans or availed final benefits.
  • Both the borrower and their spouse, if applicable, should be updated on any other SSS loan payments.

  Application Process

  Once criteria is met, you can then move on to the step-by-step breakdown of the application procedure.

  1. Gather Required Documents

  • Download and fill out the Application for Direct House Repair and/or Improvement Loan form from the SSS website.
  • Prepare photocopies of your and your spouse’s (if applicable) SS ID cards. Alternatively, provide any two valid IDs with signatures, at least one with a photo.
  • Submit proof of income, depending on your employment status:
    • For employed individuals: Present your latest Income Tax Return, Certification of Employment and Compensation, and two recent monthly payslips.
    • For self-employed/business owners: Provide audited Financial Statements for the past two years.

    2. Choose Your Preferred Loan Option

    • Decide whether to apply for a Direct Loan through SSS branches or opt for an Accredited Participating Financial Institution (PFI) loan. SSS collaborates with various banks for this purpose.

    3. Submit Your Application

    • For Direct Loans: Visit your nearest SSS branch and submit the completed application form along with the required documents.
    • For PFI Loans: Contact your chosen bank to inquire about their specific application process and additional document requirements.

    4. Property Appraisal

    • SSS will coordinate with an accredited appraiser to assess the property and determine the estimated repair/improvement cost.

    5. Loan Approval and Release

    • Upon approval, SSS or the chosen PFI will notify you of the loan approval status.
    • Complete any additional documents and adhere to specific procedures before the loan proceeds are released.

    SSS Housing Loan Options

    Moreover, here are the various housing loan options you may explore fitted to your needs and circumstances.

    Direct Housing Loan Facility for Workers’ Organization Members

    This facility offers socialized and low-cost housing to legitimate members of registered and accredited workers’ organizations. Eligible organizations include national/local/independent unions, federations, or trade union centers in the private sector.

    You may borrow up to ₱2 million, depending on the housing loan type. Socialized Housing Loan allows up to ₱450,000, while Low-Cost Housing Loan ranges from ₱1 million to ₱2 million. Loan approval depends on the borrower’s need, capacity, and collateral value (70%-90%).

    Repay in multiples of five years up to 30 years. Interest rates vary based on the loan amount, ranging from 8% to 11% per annum.

    Submit original copies of essential documents, including the Mortgagor’s Application for Housing Loan, certificate of membership in a worker’s organization, and employer’s certification, among others.

    Direct Housing Loan Facility for OFWs

    Designed for Overseas Filipino Workers seeking socialized and low-cost housing. Eligible individuals include those with authenticated employment contracts or long-term residency abroad.

    You may access up to ₱2 million, with Socialized Housing Loan capped at ₱450,000 and Low-Cost Housing Loan up to ₱2 million.

    Repay in multiples of five years up to 15 years, not exceeding the building’s economic life. Interest rates range from 8% to 11% per annum.

    Provide necessary documents such as the Mortgagor’s Application for Housing Loan, POEA/OWWA/DOLE Certification, and contract to sell/deed of sale, among others.

    House Repair/Improvement Loan

    Ideal for financing significant repairs or enhancements to housing units, including expansion, completion of occupied bare houses, or installation of amenities.

    • Loan Amount, Interest Rate, and Loan Terms

    Borrow up to ₱1 million, repayable in multiples of five years for up to 20 years. Interest rates start at 9% per annum, with terms subject to repricing after 15 years.

    Submit relevant documents like the Application for Direct House Repair and/or Improvement Loan, SS ID cards, and property-related certificates.

    Assumption of Mortgage

    Allows members in good standing to assume the updated principal balance of an existing SSS housing loan, subject to certain conditions.

    • Loan Amount, Interest Rate, and Loan Terms

    Access up to ₱2 million, repayable in multiples of five years. Interest rates range from 8% to 11% per annum.

    Provide documents such as the Mortgagor’s Application for Housing Loan, latest ITR, certification of employment, and deed of sale with assumption of mortgage.

    These diverse options cater to different housing needs, ensuring SSS members can find suitable financing solutions for their homes.

    Additional Information

    • Be aware of processing fees, which include ½ of 1% of the loan amount or ₱500 (whichever is higher), not exceeding ₱3,000. An inspection fee of ₱500 applies for both locations within and outside Metro Manila.
    • For inquiries or assistance, you can contact SSS through their Call Center or via email.

    Pros and Cons of SSS Housing Loan

    Before proceeding, consider the following aspects:

    • Pros include lenient eligibility requirements, competitive rates, and flexible repayment periods of up to 30 years.
    • Cons encompass the time-consuming application process and potential limitations on the loan amount.

    Additional Factors to Consider:

    • Take note of early settlement fees and interest accrual during construction.
    • Compare SSS loan options with those offered by other institutions like Pag-IBIG to ensure the best fit for your needs.

    Final thoughts

    The SSS Housing Loan presents a viable option for members seeking to improve their residential properties. While it offers several advantages, including favorable terms and accessibility, it’s essential to weigh the pros and cons and consider your financial circumstances before proceeding. By adhering to the outlined steps and seeking guidance from SSS representatives, you can navigate the application process smoothly and realize your home improvement aspirations.

    Sources: (1), (2), (3)

    Eriel is a campus journalist and a professed poet and creative writer, driven by her hobbies of reading and writing. Despite pursuing a STEM field as an environmental awareness and action advocate, she ensures to keep her love for words, stories, and arts alive by working as a freelance writer. Currently, she contributes entertainment, lifestyle, and feature articles to WhatALife.