The government has launched First Home Finance, a revised housing scheme that replaces the Finance-Linked Individual Subsidy Programme (FLISP) and Help-Me-Buy-A-Home scheme.
In a joint statement, the National Housing Finance Corporation (NHFC) and the Department of Human Settlements provided details about the new scheme, including how to apply.
“The qualification criteria for First Home Finance have been revised to accommodate and assist with funding all qualifying South Africans who want to acquire their first homes,” NHFC said.
“The revised programme also caters for beneficiaries who are not approved for home loans but intend to, among other options, build their own houses in rural areas and cities’ serviced sites. The First Home Finance can assist beneficiaries that raise financial resources through various means such as cooperative and community-based saving schemes, e.g., stokvels, to apply for government financial assistance.”
Human Settlements Minister Mmamoloko Kubayi added that the scheme “gives a property-ownership opportunity to those that our mainstream financial system has excluded.”
How to apply for First Home Finance
You can apply for First Home Finance by visiting the NHFC’s online portal and clicking the “Apply” button near the bottom of the page. You will be required to login if you already have a profile or register if you don’t have one.
However, there are steps you must take first before submitting your application online. The full application process is as follows:
- Visit the NHFC online portal or call the NHFC on 010 085 2199 to see if you meet the qualifying criteria.
- Check if you qualify for a home loan at a bank of your choice.
- Identify a house or stand that you wish to buy.
- Conclude a purchase and sale agreement.
- Obtain a home loan confirmation from the bank/financial institution.
- Complete and submit an application online on the First Home Finance Application Portal on the NHFC website.
Once you are ready to apply online, make sure you have all the required supporting documents.
Qualifying criteria
To apply for First Home Finance, you need to meet the following qualifying criteria:
- Be a South African citizen with a valid ID or a permanent resident with a valid permit.
- Be over 18 years of age and competent to sign a legal contract.
- Have never benefited from a government housing subsidy scheme before.
- Have never owned a home as checked from the Deeds Register (i.e., be a first-time home buyer).
- Have an Approval in Principle of a home loan from an accredited South African financial institution.
- Your total household income must be within the range of R3,501 to R22,000 per month.
Required documents
In addition to meeting the requirements listed above, applicants must also submit certified copies of the required documents.
The documents include:
- Republic of South Africa bar-coded Identity Document (ID).
- Bar-coded Permanent Residence Permit (where applicable).
- Birth Certificates/South African IDs of all financial dependants (where applicable).
- Proof of Foster Children Guardianship (where applicable).
- Marriage Certificate, Civil Union Certificate or Cohabiting Affidavit, or Proof of Partnership (where 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).
For further inquiries, email the NHFC at firsthomefinanceenquiries@nhfc.co.za or call 010 825 2199. You can also view more details on the First Home Finance brochure. Visit the NHFC’s downloads page to access the application form and user guide. Good luck!