The Department of Human Settlements is steadily increasing its push to get more qualifying people to apply for housing finance that is provided through one of its programmes, the Finance Linked Individual Subsidy Programme (Flisp).
Flisp is currently one of the programmes that the Department is currently promoting as part of its campaign to get more people to understand all the housing opportunities that are available in the human settlements sector.
Some of these include the upgrading of informal settlements, provision of title deeds to home owners living in government provided housing, building houses for military veterans and the provision of BNG housing, which are commonly known as RDPs for those who are deemed to be indigents and those earning below R3 500 a month.
However, Flisp is not necessarily aimed at people who have no or little income, but it was developed to meet the needs of those who fall within the so called Gap-Market. These are people earning between R3 501 and R22 000 per month.
The programme aims to enable first time home-buyers to access affordable housing. These may include even public servants such as teachers and police and others who fall in the salary bands that generally make it hard to qualify for housing finance.
This is because financial institutions such as banks deem their income to be low for mortgage finance and yet these people are at the same time unsuitable for the government’s BNG or RDP subsidy scheme.
According to the NHFC, one of the Department of Human Settlements agencies responsible for financing, depending on the applicant’s gross monthly income, their once-off Flisp subsidy qualifying amount may vary between R27 960 and R121 626.
People wishing to be considered for Flisp must produce an ‘approval in principle’ indicating the approved home loan amount, from an accredited South African financial institution. And further requirements for qualification include that a person must:
- be first time home buyer
- be a South African citizens with a valid bar-coded identity document (ID), or if a Permanent Resident must have a valid bar-coded permit
- be over 18 years old and competent to legally contract
- have financial dependents
- never have benefitted from any Government Housing Subsidy Scheme before
Officials will conduct an assessment to determine if all these qualification criteria are met and they can also assist applicants to ensure their applications are done correctly. Applicants will also be asked by the NHFC to provide additional information such as certified copies of IDs, birth certificates, marriage certificates, civil union certificates or affidavits proving cohabitation or existence of partnerships.
Those wishing to build their own houses would be required to provide building contracts and approved building plans.
For more information interested people may visit www.nhfc.co.za
– eNewsletter of the Deartment of Human Settlements