Rural housing program launched

More than 500 countryside financial institutions (CFIs) accredited by the Land Bank of the Philippines can now avail of a P6-billion loan fund to address the housing requirements of their borrowers.

Recently launched by Landbank, the CFIs Home Lending Program (CHLP) is part of the Bank’s support to the National Government’s priority program for mass housing. The CHLP provides financing to Landbank-accredited rural banks, cooperative banks and thrift banks for re-lending to their clients.

Landbank president and CEO Gary B. Teves said this conduit financing scheme offered by the bank is in compliance to its commitment to the implementation of the Mutli-Window Lending System (MWLS).

The MWLS is a government program that seeks to provide opportunities for home ownership which is also being supported by other government financial institutions.

SSS, GSIS or HDMF members of good standing are eligible as sub-borrowers of the accredited CFIs.

Under the program, countryside clients can borrow P180,000 for socialized housing; more than P180,000 to P500,000 for low cost housing; and more than P500,000 to P1.5 million for medium cost housing.

Loan coverages include the construction of a new house; purchase of house and lot, condominium or townhouse units; and purchase with assumption of mortgage of an existing residential unit previously financed under the Unified Home Lending Program (UHLP).

Financing also covers purchase of existing residential unit foreclosed by the CFI or bought back by developer under UHLP; purchase of a lot under the National Housing Authority site and services program; and, renovation or expansion of existing house.