Reacting to initial consultations made on the draft of the proposed non-member home financing program, Mariano D. Martinez Jr., SHDA national president, said that the government move will further ‘democratize’ the opportunity of homeownership, as it will further expand the coverage of the government housing loan program to the bigger sector of the citizenry who also needs housing assistance.
Under the proposed housing loan window, whose guidelines are subject of on-going sectoral consultations before being finalized by the Housing and Urban Development Coordinating Council (HUDCC), loans of up to P500,000 per housing unit are proposed to be made available at 16 percent interest rate per annum for a maximum repayment period of thirty (30) years, Martinez cited.
Also to be granted are loans of up to P180,000 at nine percent interest rate; and up to P350,000 loan at a 12 percent interest rate.
The scheme also provides for loans to be originated by financial institutions to be accredited, which shall be secured by real estate mortgage; and by subdivision developers under the Contract-to-Sell system.
The loans, as proposed, may be used to purchase a residential lot; purchase of a lot and construction thereon of a new house; construction of a dwelling unit; purchase of residential unit, either newly constructed or over one year old; and for subsequent construction of a residential unit on a lot previously financed under this program.
Likewise, the purchase of a residential unit with an existing mortgage, provided that there are no other liens or encumbrances that will prejudice the easy transferability of the title thereon, is also allowed under the program, Martinez added.