Details about the SSS Housing Loan for Home Improvement
The Social Security System offers an SSS Housing Loan that can finance house repair and home improvement projects of qualified members.
Millions of Filipinos are members of the Social Security System or more popularly called SSS. It is one of the giants in the field of social insurance. It offers several loans and benefits for its qualified members.
However, not all members are aware that they can actually turn to the SSS in the pursuit of making home improvements. Unlike most loan offers that finance the acquisition of residential properties, the offer of SSS is solely for home improvement purposes.
Both major and minor home improvements may be financed by the state-run social insurance institution under the SSS Housing Loan offer. You may apply for the loan to fund major and minor home repairs and improvements including the following:
- Major repairs, particularly for dilapidated and structurally unsafe housing units
- Extension or expansion and enhancement of economic and aesthetic value of an existing housing unit
- Construction of concrete fence and steel gate
- Completion of an occupied bare house
- Installation of deep well and motor pump
Under the loan offer, the acceptable collaterals include any of the following documents that must be registered by the Registry of Deeds in the name of the principal borrower or his/her spouse free from aliens and encumbrances:
- Transfer Certificate of Title (TCT)
- Original Certificate of Title (OCT)
- Condominium Certificate Title (CCT)
According to the Social Security System, under the offer, the loan shall be secured by a first mortgage on the lot and residential property proposed to be repaired and/or improved. Here are the collaterals that are not acceptable under the loan offer:
- 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
Under the loan offer, your residential property will be insured by a Mortgage Redemption Insurance, Fire Insurance, and Home Guaranty Corporation Coverage.