SSS Assumption of Housing Loan Mortgage

OVERVIEW

Assumption of Mortgage is a lending program of the Social Security System (SSS) allowing a member in good standing to assume the updated principal balance of an existing SSS housing loan.

ELIGIBILITY REQUIREMENTS

a. Eligible Borrowers

The principal applicant must have the following qualifications:

1. The borrower must be a member of SSS who has at least 36 months contribution and 24 continuous contributions in a period prior to application
2. Is not more than 60 years old at the time of application.
3. He was not previously granted an SSS housing loan
4. He has not been granted final SSS benefits
5. Borrower and spouse is current in the payment of their other SSS loan(s), if any

HOW TO APPLY

The member may file the application at the nearest SSS cluster branch or at the Housing and Business Loans Department, 5/F, SSS Bldg., East Avenue, Diliman, Quezon City.

The following documents should be submitted upon filing of application:

a. Original copy of Mortgagor's Application for Housing Loan with 1” x 1” ID pictures of Principal Applicant and Spouse;

b. Original and photocopy of latest Income Tax Return together with Form W-2 and Confirmation Receipt. (Not applicable for overseas worker);

c. SS Form E-1 (and E-4, if any). If self-employed, SS Form RS-1; Employer Membership Certificate and Business License;

d. Certification of Employment, Compensation and SSS Premium Contributions duly signed by the employer's SSS authorized signatory. If overseas worker, Certification and Contract of Employment (duly authenticated by the Philippine Consulate);

e. Deed of Sale with Assumption of Mortgage and latest Statement of Account from Investment Accounting Department (IAD), 9th floor;

f. If existing housing loan with the SSS is a Joint Applicant, written conformity of the other Joint Applicant; and

g. Affidavit of undertaking to continue paying monthly SSS Premium Contributions for the duration of loan for Voluntary and Self-employed members only.

Note:

• Present original and submit one (1) photocopy of required documents for authentication purposes

• Applicant and spouse must be up-to-date in the payment of all existing loan accounts with SSS subject to verification by the SSS

• SSS reserves the right to require additional documents if deemed necessary

• Application Fee – ½ of 1% of loan amount or P500.00, whichever is higher but not to exceed P3,000.00, to be paid prior to journalization of the account.

LOAN DETAILS

a. Loanable Amount

The maximum loanable amount is P2,000,000 but should not exceed the updated loan balance of the account assumed.

1. Appraised value of collateral of at least 70% but not to exceed 90%;

2. Borrower's capacity to pay; and

3. Actual need of the borrower based on the contract to sell/scope of work and bill of materials evaluated by the SSS.

b. Interest Rate

Up to P450,000.00 - 8% p.a.

Over P450,000.00 up to P1,000,000.00 - 9% p.a.

Over P1,000,000.00 up to P1,500,000.00 - 10% p.a.

Over P1,500,000.00 up to P2,000,000.00 - 11% p.a.

c. Term of the Loan

The amortization period shall be in multiples of five (5), but shall in no case exceed:

1. The remaining term of the old mortgage;

2. The economic life of the house; and

3. The difference between the age of the applicant and 65.

d. Allowable Collateral/s

The collateral shall be the house and lot which is the subject of the mortgage to be assumed.

e. Insurance

The housing loan account should be covered by a Mortgage Redemption Insurance and Fire Insurance.

The insurance premiums shall be shouldered by the borrower.

f. Loan Release

The amount assumed is transferred to the mortgagor. A new account number will be assigned to be used in paying the monthly amortization of the loan.

g. Manner of Payments

The regular monthly amortization payment shall start within the first ten (10) days of the succeeding month after the account has been journalized. Prior to journalization, the applicant shall continue paying the monthly amortization for the account of the original mortgagor.

h. Default in Payment of Amortization

Any unpaid loan amortization shall bear a penalty of 1.5% for every month of delay. If the mortgagor fails to pay at least six (6) monthly amortizations, the SSS may immediately foreclose the mortgaged property.

Source:  SSS