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June 3, 2019

National Home Mortgage Finance Corporation (NHMFC) Housing Loans

The National Home Mortgage Finance Corporation (NHMFC) was built in response to the need for increasing the availability of affordable housing loans. Unlike SSS or Pag-IBIG Fund, the NHMFC is catered to the secondary market that operates or finances for home mortgages.

There is actually only one loan program that NHMFC offers which is the Housing Loan Receivables Program (HLRPP). This is directed more to financial institutions, developers, LGUs, cooperatives and other private sectors. They’ve created a program to help these organizations have more to lend to potential homeowners by liquidating their qualified housing receivables.

Aside from this, the HLRPP also looks into helping these organizations better manage their investment risk profiles and create more affordable housing loans with lower interest rates to eventually extend repayment methods for borrowers such as yourself.

Social Housing Finance Corporation (SHFC) Housing Loans

The Social Housing Finance Corporations (SHFC) was born out of the transfer of loan programs which was originally run by the National Home Mortgage Finance Corporation (NHMFC).  The SHFC is concentrated on providing housing loans and financing for low-income families and informal settlers. Just like the NHMFC, the SHFC works with secondary markets such as LGUs undergoing housing projects to help those with lower incomes gain their own home.

These recipients can either receive SHFC-backed home-ownership or financing through four options:

  1. Abot Kaya Pabahay Fund-Development Loan Program (AKPF-DLP)

Those who fall under the income family bracket living in an urban city can be helped through financing house or building construction via the AKPF-DLP. But these said homes must be part of the community mortgage program (CMP) or a specific housing project.

This is directed more towards corporations or LGUs that partner with developers of socialized housing projects.

  • Community Mortgage Program (CMP)

Legally organized Informal Settlers (ISF) of depressed areas can find help in financing their homes through the CMP. In a gist, this program seeks to help ISFs have the opportunity to improve their neighborhood by making it financially possible. Through this, they could eventually own their own homes.

The CMP cannot be a single person-application, it requires beneficiaries to form and register a Community Association to qualify. But how does each beneficiary receive rights over their property or land? It’s possible through a Lease Purchase Agreement (LPA) with the Community Association.

Core requirements are as follows:

  1. Must be at least 18 years old
  2. Cannot be more than 60 years old during the release of the loan
  • High-Density Housing Program (HDH)

SHFC has always been active in ISF Housing Program, with this the government provided them with P50 billion that is to be allotted for five years. So, the SHFC opted to create the High-Density Housing Program (HDH). Their main goal is to provide safe and flood-free homes for ISFs living within the National Capital Region (NCR).

  • Localized Community Mortgage Program (LCMP)

The LCMP works hand-in-hand with LGUs. This community mortgage program is designed for members of the LGU looking to acquire land which is primarily mortgaged to SHFC. Should the said city or municipality be qualified, they will be accredited by SHFC as partner LGU. Once this has been approved, those who fall under the qualifications can essentially receive any of the three acquisition loan options:

  • P30,000 for site development loan (with a monthly amortization of P205.59)
  • P100,000 for lot acquisition loan (with a monthly amortization of P685.30)
  • P120,000 house construction loan (with a monthly amortization of 834.60)

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