SKG Home Loans
The Finance Linked Individual Subsidy Programme (FLISP) was developed by the Department of Human Settlements to enable sustainable and affordable first time homeownership opportunities to South African citizens and legal permanent residents earning between R3 501 and R22 000 per month, (the ‘affordable’ or ‘gap’ market). Individuals in these salary bands generally find it hard to qualify for housing finance; their income is regarded as low for mortgage finance, but too high to qualify for the government ‘free-basichouse’ subsidy scheme. FLISP enables qualifying beneficiaries to reduce the initial home loan amount or augment the shortfall between the qualifying loan and the total house price.
What to do with FLISP?
The once-off FLISP subsidy amount ranges between R27960 and R121626, depending on the applicant’s monthly income.
Who can apply?
Applicants intending to acquire residential property may apply for FLISP if they meet the following qualifying criteria:
The following CERTIFIED COPIES are required as supporting documents when applying for FLISP:
FLISP REDUCES the initial home loan amount making monthly loan repayment instalments affordable (payment made to home loan account)
SUBSIDY QUANTUM Example 1 is based on an R9 000 p/m income – band, where the individual after the Lender/Bank’s credit and affordability assessment, based on the National Credit Act (NCA) criteria,qualified for R300 000 home loan. FLISP AUGMENTS shortfall between the qualifying loan amount and the total product price (payment made to transfer attorneys)
SUBSIDY QUANTUM Example 2 is based on an R9 000 p/m income-band, where the individual after the Lender/Bank’s credit and affordability assessment, based on the National Credit Act.
The Lender/Assess home loan applications according to their own credit and affordability assessment standards and the National Credit Regulation’s lending criteria.
Option 1: Development Housing Projects Once Lender grants home loan approval or ‘approval in principle’,Developer submits the applicant’s completed FLISP Application Forms to the NHFC
Option 2: Open Market Once Lender grants home loan approval or ‘approval in principle’,applicant or Estate Agent completes the FLISP Application Forms obtainable from NHFC website, Human Settlement Provincial & Regional Offices and some Estate Agents