For numerous South Africans, owning a home represents a lifelong aspiration. Yet, for those with moderate incomes, the journey toward this goal often presents significant hurdles. To alleviate such challenges, the South African government has established various housing subsidy programs aimed at facilitating homeownership. One of these initiatives is the First Home Finance scheme, previously recognized as the Finance Linked Individual Subsidy Programme (FLISP). This article comprehensively examines the First Home Finance subsidy, encompassing its eligibility requirements, application procedures, and more.
Understanding First Home Finance
The First Home Finance subsidy is a government-backed program crafted to support South African citizens and permanent residents who earn between R3,501 and R22,000 monthly. This subsidy seeks to make owning a home more attainable for individuals who neither qualify for a government-provided house nor secure a complete home loan from private banks. Depending on an applicant’s income, the subsidy can range from R30,001 to R130,505.
Criteria for Eligibility
To be eligible for the First Home Finance subsidy, applicants need to satisfy the following conditions:
- Citizenship: Applicants must possess South African citizenship with a valid ID or hold permanent residency with an appropriate permit.
- Age Requirement: Applicants must be at least 18 years old and legally able to enter into a contract.
- Past Government Assistance: Applicants should not have received a government housing subsidy before.
- Loan Approval: An ‘Approval in Principle’ for a home loan or an unsecured loan from an accredited South African financial institution, like SA Home Loans, is necessary.
- First-Time Home Buyer: Applicants must be purchasing a home for the first time.
Application Steps
The First Home Finance application involves a series of steps:
- Pre-Approval for Home Loan: Secure pre-approval for a home loan from a recognized lender.
- Application Submission: Apply for the subsidy either at a local Department of Human Settlement office or online via the First Home Finance Application portal.
- Provision of Documents: Submit all required documents, including certified copies of IDs, income proof, home loan approval, and other pertinent materials.
Document Checklist
To apply for First Home Finance, ensure the submission of these certified documents:
- Smart Card or bar-coded ID for all adult household members.
- Birth certificates for children without bar-coded IDs.
- Proof of South African citizenship.
- Marriage certificate (if applicable).
- Divorce decree (if applicable).
- Guardianship Court Order (if applicable).
- Income verification.
- Permission-To-Occupy for rural area applicants.
- Affidavit for customary law unions.
- Guardianship proof for foster children (if applicable).
- Spouse’s death certificate (if applicable).
- Home loan approval in principle.
- Agreement of sale for the residential property.
- Building contract and sanctioned building plan (if applicable).
Checking Your Application Status
To track the status of your First Home Finance application, reach out to the National Housing Finance Corporation (NHFC) or your local Department of Human Settlement office. Typically, the NHFC processes subsidy applications within a week upon receiving a complete application.
Home Buying Options
With the First Home Finance subsidy, you have several purchasing avenues:
- Purchase an Existing Home: This includes both new and pre-owned properties.
- Acquire a Vacant Serviced Stand: Buy a serviced residential plot tied to a contract with an NHBRC-registered home builder.
- Construct a Home: Build on a privately owned serviced lot or tribal land (PTO) through a builder registered with the NHBRC.
Support from SA Home Loans
SA Home Loans can facilitate the First Home Finance application process by providing proof of home loan approval. They will evaluate your home loan application against their criteria, and if approved, you or your estate agent can complete and submit the necessary forms to the NHFC.
Ineligibility Options
If you do not qualify for First Home Finance, you can still pursue homeownership with SA Home Loans. They will conduct credit and affordability checks based on the National Credit Act (NCA) standards to determine loan eligibility.
Contact Information
For additional information or guidance on the First Home Finance application, get in touch with the following organizations:
- National Housing Finance Corporation (NHFC): [email protected]
- Estate Agency Affairs Board (EAAB): Contact Number: 087 285 3222
- National Credit Regulator (NCR): Contact Number: 0860 627 627 / 011-554 2600
- Department of Human Settlements: www.dhs.gov.za
The First Home Finance subsidy stands as a significant resource for aspiring homeowners in South Africa. By familiarizing yourself with the eligibility conditions, application process, and available options, you can leverage this program to obtain a home for you and your family. Seek help and information from relevant authorities to turn the dream of homeownership into reality.
