Borrower Eligibility
- Borrower qualifications follow CMP On-Site and Off-Site land acquisition guidelines.
- Community Associations (CAs) must be registered owners or have lease/usufruct agreements matching loan terms.
- CAs with existing lot acquisition loans must have at least 80% Collection Efficiency Rating.
Loan Amount
- Maximum loan entitlement per member: PHP 30,000 for site development; PHP 120,000 for house construction; total of PHP 150,000.
- Unused loan entitlement in land acquisition and site development can augment site development and construction loans but cannot increase land acquisition loan limits.
- Total loan entitlement across land acquisition, site development, and house construction is capped at PHP 250,000 per member.
- Loan amount based on lowest of maximum entitlement, submitted project cost, or SHFC estimated costs.
Interest Rate and Loan Term
- 6% annual interest calculated on outstanding balance.
- Equal monthly amortization payments.
- Maximum term of 25 years or remainder of lot acquisition loan term if applicable.
Contractor/Developer Assessment
- SHFC conducts due diligence on contractors/developers as per Corporate Circular HDH No. 14-002.
- Self-help schemes allowed where no contractor/developer is hired.
Loan Payment
- Monthly amortization starts after full loan release or 1 year after loan availment, whichever is earlier.
Project Completion
- Site development and house construction must be completed within one year from loan availment.
Loan Release
- Loans released by progress billing per approved work plan, with up to 5 tranches within one year.
- A 15% mobilization fund may be released upfront if no physical development is present and the project is under Performance Bond.
Collateral
- Acquired land serves as collateral under Corporate Circular No. 11-017.
- Landowner must have legal capacity to mortgage the property.
Insurance
- Mortgage Redemption Insurance (MRI) mandatory for site development loan members.
- Fire and Allied Perils Insurance (FAPI) mandatory for house construction loans.
- MRI premium for first year paid upfront; subsequent premiums monthly with amortization.
- FAPI covers loan/appraised value of unit and improvements, premium payment same as MRI.
Partnership with Local Government Units (LGUs)
- SHFC and CAs must coordinate with LGUs for plan approvals and permits under the City-Wide Development Approach.
Documentary Requirements for Loan Application
A. Mortgage Examination Department requires MOA, business registration, CA secretary's certificate, HLURB GIS certification, tax clearance, incorporation papers, and tax declarations. B. Project, Evaluation, Monitoring, and Loan Examination Department requires application letter, MOA, masterlist of beneficiaries, proof of savings, community profile, and contractor business permit. C. Technical Services Department requires LGU-approved site development and house plans, work schedules, development and building permits.
- Initial loan release additionally requires board approval, letter request, proof of cash deposit and MRI premium payment, accomplishment report/photos, performance bond, and loan documents including agreement, promissory note, mortgage, deed of assignment, collection agreement, and beneficiary list.
- Subsequent releases require letter request, promissory note, deed of assignment, amended lease purchase at final release, and accomplishment report.
Effectivity
- Circular effective immediately upon posting on SHFC website.
- Issued by SHFC President for information and guidance.