An OFW’s Guide To SSS Direct Housing Loan Facility5 min read
For overseas workers dreaming of earning enough to buy their own home, the SSS Direct Housing Loan Facility for OFWs is a huge blessing.
This loan facility from Social Security System (SSS) is made to help overseas Filipino workers construct a new home or a dwelling unit on a property owned by the borrower; to purchase a lot to build a new home; or to purchase an existing residential unit like a condo, lot, or a townhouse.
Take note that it is required by SSS that the OFW applicant or their immediate family must occupy the property bought with the SSS Direct Housing Loan Facility.
Who are eligible for an SSS Direct Housing Loan Facility?
- The applicant should be a certified Overseas Filipino Worker (OFW)
- Should be a voluntary OFW member of SSS
- The applicant should have had at least 36 months of contributions
- Prior to the application period, the applicant should have had at least 24 continuous contributions
- Should not be more than 60 years old at the time of application (member must be insurable)
- For those who are age 60 years at the time of application, they will have a maximum loan term of five years
- There should be no previous granted SSS housing loan
- The members should have not yet been granted the final SSS benefits
- If the member has an existing SSS loan, they should be up to date with their payments
(Read: Property Buying Guide for OFWs: 5 Steps To Buying Your Own Home)
What are the requirements?
This loan requires the lender to present collateral. The acceptable collateral types are:
- Transfer Certificate Title (TCT) issued by the Registry of Deeds
- Original Certificate of Title (OCT) issued by the Registry of Deeds
- Condominium Certificate of Title (under the applicant’s name free from liens and encumbrances) issued by the Registry of Deeds
The loan should be first secured by the Real Estate Mortgage (REM) on the house and lot to be financed. There should be an annotation on the applicant’s TCT/OCT/CCT by the REM and should be registered with the Registry of Deeds.
The loan should also be covered by an HGC guaranty
If the applicant’s purpose for loaning is to buy a residential condominium unit prior to the actual construction or pre-selling, you can submit other residential properties as collateral to secure the loan.
As per SSS, these are not to be acknowledged as collaterals:
- Land type other than residential
- Less than 15 sq. meters floor area, in case of condominium units
- Less than 32 sq. meters lot area
- Road right of way is less than 1.5 meters
- Free/Homestead/Miscellaneous Sales Patent Titles
(Read: Best Savings Accounts For OFWs Looking To Invest In Their Future)
How much can be borrowed?
Unlike Pag-IBIG where the maximum loan is P6 million, the maximum loan for the SSS Direct Housing Loan Facility is P2 million.
The approved loan amount will always be based on these factors:
- The appraised value of the collateral, at least 70% but not exceeding 90%
- Applicant’s ability to pay back the loan
- The need of the borrower that is based on the contract to sell or the scope of work and bill of materials that were evaluated by SSS
For a single loan, a maximum of three qualified SSS members are allowed to be tacked-in to have a combined maximum individual availment for the loanable amount. They have to be secured by the same collateral (provided that they are the same with the first civil degree of consanguinity or affinity).
Socialized Housing Loan
- Up to P450,000.00
Low-cost Housing Loan
- Over P450,000 up to P1,000,000
- Over P1,000,000 up to 1,500,000
- Over P1,500,000 up to P2,000,000
How to apply?
You may apply at the nearest SSS branch or you can go to the Housing and Business Loans Department at 5/F, SSS Bldg., East Avenue, Diliman, Quezon City.
These are the documents you need when you apply, make sure to bring the original document and a photocopy:
- Mortgagor’s Application for Housing Loan. This must include the most recent 1” x 1” ID picture of the Principal Applicant Spouse
- Certificate of Loan Eligibility (CLE). Note that there is a P100 service fee
- Certification from POEA/DOLE/OWWA/ SSS Foreign Representative Office or Philippine Embassy/Consular Office
- Deed of Sale or Contract to Sell. Make sure that it has a statement of the latest balance for purchase of lot or house and lot.
- Appraisal Report from Home Guaranty Corporation accredited appraisal companies
- Certificate of Acceptance and Occupancy that is duly signed by the borrower if house is 100% complete at the time of loan filing. If the filling is through a representative, a duly notarized Special Power of Attorney is needed.
- The most recent Contract of Employment and the latest Employer’s Certification duly authenticated by the Philippine Consulate
Other required documents:
- A lot plan that should include a vicinity map duly signed and sealed by the Registered Surveyor or a Geodetic Engineer
- A blueprint that includes the building plans/specifications/picture of the house
- Twelve postdated checks that cover the twelve monthly installments and will be repeated every twelve months thereafter until the loan is fully paid
- Tax Mapping or a Subdivision Plan
- An Affidavit of Undertaking to continue paying monthly SSS premium contributions for the duration of the housing loan
What is the term of the loan?
The term of the loan will be subjected to the following:
- The applicant’s age should not exceed 65 years old at the time of loan maturity
- The loan term should not exceed the economic life of the building
The loan is payable in multiples of five years up to a maximum of 15 years.
(Read: Pag-IBIG Housing Loan Application for OFWs: Make Your Dream Home A Reality)
What are the modes of payment?
This is the list of the Overseas Payment Centers for OFWs:
- AUB Ginto Hatid Express
- Bancnet online payments
- BDO Remit Services
- RCBC Telepay Service
- BOC Remittance tie-ups
- PNB electronic overseas bills payment
- i-Remit online branches
- Ventaja online outlets
- WDS-Lucky Money online branches
- Metrobank online branches & subsidiaries
- Branches or remittance tie-ups of accredited collecting banks
(Read: SSS Salary Loan Application: A How-To Guide)
What is the interest rate?
The annual rate depends on the amount of the loan.
|Loan amount||Interest rate|
|Up to P450,000||8% p.a.|
|Over P450,000 up to P1 million||9% p.a.|
|Over P1 million up to P1.5 million||10% p.a.|
|Over P1.5 million up to P2 million||11% p.a.|
There is also a required inspection fee that will cost P500 and an application fee that will be automatically deducted from the loan proceeds. The application fee will cost either P500 or half the 1% of the loan amount, whichever is higher.
If you have questions that are not answered by this article, here are the contact details for SSS:
Address: SSS Housing and Business Loans Department, 5th Floor, SSS Main Building, East Avenue, Diliman, Quezon City
Telephone number: 8-920-64-01 local 5121 to 5127