SHFC DEFAULTING HOUSING LOAN BORROWERS TOLD: AVAIL OF CONDONATION

HERE IS GOOD NEWS FOR HOUSING LOAN BORROWERS OF THE SOCIAL HOUSING FINANCE CORPORATION (SHFC) WHO DEFAULTED ON THEIR AMORTIZATION

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For those who have already availed of loans but are falling behind on their payments, SHFC will alleviate their burden and get them fully on track to their dream home by availing  of our penalty condonation program, said the government agency that provides low-interest, long-term social housing loans to  under-privileged communities and homeless Filipinos through the SHFC Community Mortgage Program (CMP).

SHFC announced the saving grace for borrowers defaulting on their monthly payments as it celebrated its 16th Founding Anniversary on January 24, 2020 in Makati City.
“This is our gift to our low-income clients on  the occasion of our anniversary,” said SHFC president Atty. Arnolfo Ricardo Cabling.
Cabling  urged CMP partner-homeowners to avail of this last chance to restructure their loan; otherwise, they will face a collection suit or foreclose.
The condonation is in line with Republic Act No. 9507 or the Socialized and Low-Cost Housing Loan Restructuring and Condonation Program.
“We are hoping that our partner-homeowners will immediately fill their application before the program ends in 2021,” said Cabling.
The loan restructuring scheme covers partner-homeowners with accumulated arrears equivalent to at least three months amortizations, except those who have previously availed of the benefits.
The loan relief initiative will give economically depressed partner-homeowners an opportunity to easily update their accounts because they will no longer pay the accumulate penalties and surcharges incurred from unpaid amortization and thereby save their homes from foreclosure, said Cabling.
The condonation program is one of two big news announced as SHFC celebrated its Founding Anniversary.

shfc 16th anniversary

Secretary Eduardo del Rosario, chief of the newly-created Department of Human Settlements and Urban Development (DHSUD), and Guest Speaker of the anniversary event, and president Cabling also bared that interest loans for socialized housing loans under the SHFC’s CMP program will be reduced from 6% to 2%.
The new reduced interest rates, approved by the SHFC Board of Directors last year, covers loan applications for socialized housing starting January 2022. 
Under the new scheme, borrowers with low income — households  within the two lowest income decile (bracket), including those below the poverty threshold based on latest results of the Family Income and Expenditure Survey — will pay interest rate of only 2 percent from the previous 6 percent. Moreover, the repayment term under the new scheme has been extended from 25 years to 35 years.
To benefit from the reduced interest, borrowers must avail of the SHFC’s full package scheme consisting of a loan for lot acquisition, site development and house construction under its Community Mortgage Program (CMP). Duly organized and registered homeowners associations and community associations shall serve as conduit of the housing loans.
The reduced interest rates will also benefit borrowers above low-income earners. Families in the 3rd decile will now pay interest of 4%, while those in the 4th to 7th decile will pay 4.5%. Families in the 8th to 10th decile or those with highest paying capacity, will continue to be charged the 6% interest, but with repayment terms extended to 30 years.

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