Social Housing Finance Corporation

The Community Mortgage Program (CMP) aims to improve the living conditions of homeless and underprivileged citizens by providing them affordable financing with
which they can secure tenure on the land they occupy.

The CMP is a mortgage financing program which assists legally organized associations of residents of blighted or depressed areas to own the lots they occupy,
providing them security of tenure and eventually improve their neighborhood and homes to the extent of their affordability.

Below is a schedule of how much a prospective member-beneficiary can borrow from CMP:   

· For onsite                            P400,000.00
· For horizontal housing           P480,000.00 up to P580,000.00
· For vertical housing               P600,000.00 up to P750,000.00
· For farmlot                           P350,000 + P50,000 Farmer Support Assistance

The loan may be used for land acquisition (Phase 1), site development (Phase 2), and house construction or home improvement (Phase 3).

The determination of final loan amount shall be subject to existing CMP guidelines. The CMP loan will bear 6% interest per year based on the outstanding balance and
will be payable over a maximum period of 25 years in equal monthly amortizations.

The processing of CMP loan applications will essentially involve due diligence verification by SHFC on the CMP loan application and the collateral. Upon acceptance of
complete documentary requirements, SHFC shall strive to devote no more than one hundred twenty (120) working days to complete the due diligence process from
CMP loan application to loan release.

The land to be acquired by the Community Association (CA) shall serve as the CMP loan collateral, and will be acceptable if the following criteria are met:
1. The title to the land is free from all liens and encumbrances at the time of release of the CMP loan;
2. The land is not classified as agricultural;
3. The land is not within environmentally-constrained/ hazardous or high-risk areas as certified by the DENR and the concerned local government unit;
4. The land has a road right of way or an access road lot to a city, municipal or barangay road; and
5. The landowner should have the legal capacity to sell or transfer the subject property for loan collateral under the CMP.

Tenants/beneficiaries shall form and register a CA, which entity shall borrow and initially own and mortgage the land. Individual beneficiaries’ right over the land and eventual ownership of the lot is achieved through a Lease Purchase Agreement (LPA) with the CA.


1. Filipino citizen, of legal age (18) at the time of the loan application and shall not be more than 60 years old upon loan release;
2. Certifies under oath that he/she has not been a recipient of any CMP loan or other govt. housing programs. Does not own or co-own a real property and is not a professional squatter as defined in RA 7279;
3. Must be a structure owner, a renter or a sharer at the site.

A CA account is considered in default if it is not up to date with its loan amortization payments equivalent to three consecutive months.

In case of non-payment of monthly amortizations on the due date (one month after release of the loan), the CA shall pay a penalty equivalent to 1/15 of 1% for day of delay.

For the duration of the loan, there shall be a Mortgage Insurance on the lives of the principal borrowers as identified in the Master List of Members on a yearly renewable term basis. The insurance premiums shall be included in the monthly amortizations of the members.

The Master list of members submitted as part of the CMP loan application are deemed final and may not be subject to substitution during loan application processing period. A member may be substituted due to the following:

Substitution of beneficiaries:

1. MB has executed a notarized Voluntary Waiver of Rights on his/her allocated lot unit;
2. MB is an absentee MB (absentee is defined as failure to occupy the assigned lot/ unit without justifiable reason within one [1] year from take-out);
3. Existence of a final and executory decision or order from the courts or quasi-judicial body directing the MB to be substituted;
4. Upon death of an MB and his/her Mortgage Redemption Insurance (MRI) proceeds is insufficient to cover arrears in loan amortization; and
5. When any of items as mentioned under CMP Circular No. 046 occurs constituting an event of default under the Lease Purchase Agreement or Lease Agreement signed by the MB and the CA with the community

Renters or sharers in the project sites shall be preferred or prioritized in the substitution process.

The CA shall be responsible for the substitution of the member without prejudice to the right of SHFC to disqualify substitute members if they fail to meet the qualifications of a member or if there is proof of misrepresentation by the CA officers.

Accredited CMP-Ms are tasked to assist informal settlers in organizing themselves into CAs. CMP-Ms may either be any government entity, non-government organizations (NGO) and People’s Organizations (PO) and must possess the needed skills to organize communities, document CMP project applications, and provide access to other government agencies involved in the program.

Community Mobilizers: CMP-Ms shall be entitled to a service fee, as follows:
• For on-site projects, 2% of the loan amount or P1,000.00 per member, whichever is higher.
• For off-site projects, 2% of the loan amount or P1,500 per member, whichever is higher
Community Mortgage Program > Fast Facts
Members of the
Community Association
(CA) are already
living/residing in the
project site

The community has
been in existence for five
(5) years; 85% of the total
number of members
should have a residency of 5 years;

at least 85%
occupancy rate at the
time of application and
100% after two (2) years from loan release

Maximum of 200
Homogenous group living
outside the project area
but has to be relocated
due to any of the
following reasons:

Beneficiaries living
in danger zones/areas;

affected by government
infrastructure project;

Beneficiaries with
threat of eviction or
actual ejectment thru a
case/court order

100% appraisal
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