Insights on FLISP for first time buyers!
What is FLISP:
The Finance Linked Individual Subsidy Programme (FLISP) was developed by the Department of Human Settlements to enable sustainable and affordable first-time home-ownership opportunities to South African citizens and legal permanent residents earning between R3 501 and R22 000 per month, (the ‘affordable’ or ‘gap’ market). Individuals in these salary bands generally find it hard to qualify for housing finance; their income is regarded as low for mortgage finance, but too high to qualify for the government ‘free-basic house’ subsidy scheme.
The price of a property that can be financed through FLISP is determined by the joint household income of not more than R22 000
Upon the lender granting of the home loan, the developer, banks, estate agents, bond originator, and general public submit the beneficiary’s completed FLISP application together with supporting documentation to the NHFC
What to do with FLISP?
Qualifying applicants may use FLISP to do one of the following:
- Buy an existing, new, or old, residential property.
- Buy a vacant serviced residential stand, linked to an NHBRC-registered homebuilder contract.
- Build a residential property on a self-owned serviced residential stand, or tribal stand (PTO) through an NHBRC registered homebuilder.
Who can apply:
Applicants intending to acquire residential property may apply for FLISP if they meet the following qualifying criteria:- ⠀ * South African citizens with a valid ID; or permanent residents with a valid permit;
- Over 18 years and competent to legally contract;
- Have never benefited from a Government Housing Subsidy Scheme before;
- Have an Approval in Principle of a home loan from an accredited South African financial institution
- First-time home buyer, earning from R3 501 to R22 000 per month.
Requirements
The following CERTIFIED COPIES are required as supporting documents when applying for FLISP:
- RSA bar-coded Identity Document (ID)
- Bar-coded Permanent Residence Permit (where applicable)
- Birth Certificates/RSA IDs of all financial dependants (where applicable)
- Proof of Foster Children Guardianship (where applicable)
- Marriage Certificate, Civil Union Certificate or Cohabiting Affidavit*, Proof of Partnership(applicable)
- Divorce Settlement (where applicable)
- Spouse’s Death Certificate (where applicable)
- Proof of monthly income
- Home Loan Approval in Principle/Grant letter from an accredited lender
- Agreement of sale for the residential property
- Building Contract and Approved Building Plan (where applicable)
First-time Homeowner Households earning R3 501 to R22 000 per month have two options on how to use FLISP when buying or building a residential property.
Option 1: Development HousingProjects
- Applicant identifies property from FLISPDevelopments
- The applicant signs an offer to purchase a property with a Developer
- The developer assists the applicant in applying for a home loan with a lender.
- Applicant completes FLISPS Forms with a developer
Option 2: Open-market
- Applicant identifies a new or old property in the Open Market or for construction on an acquired vacant serviced stand
- Applicant signs a property offer to purchase with the Seller or through an estate agent.
- The applicant applies for a home loan with a lender