Don’t qualify for RDP house?
Last week the Western Cape government in conjunction with the Knysna municipality hosted workshops on the Finance Linked Individual Subsidy Programme (FLISP) aimed at assisting those households with an income of between R3 500 and R15 000 per month to enter the property market and purchase a house.
This subsidy was introduced in 2012 and was aimed at assisting the families whose combined monthly income exceeds R3 500 per month which is too much to qualify for an RDP housing subsidy and too little to purchase a home.
The purpose of this subsidy has been described as being aimed at assisting households to access housing through a contribution by government that increases the size of the home loan available to those who are stuck between RDP housing (earning too much) and not being able to afford a home.
There are certain specific criteria that must be met.
Among other things, the members of the applicant households must be South African citizens or have permanent residency, must apply for a home loan and be eligible to obtain one, and may not already have received assistance in respect of a house from the government.
This means if an applicant has already received an RDP house they will not be eligible for this subsidy.
This subsidy amount ranges from R20 000 to R87 000 depending on the income of the applicant household, which amount can be added to the approved home loan amount, or be incorporated into the amount, reducing the monthly payments.
The subsidy scale and application forms can be accessed online at www.nhfc.co.za.
There is also nothing to preclude those who own land and want to build a house from utilising the subsidy provided, to apply for a home loan to build the house if the building is undertaken by a registered builder.
All queries in respect of the subsidy and application can be addressed to the housing office at Knysna municipality or calls can be made to 081-500-7715 and whatsapp messages sent to 082-592-0208. Further information can be obtained on the western cape government website at www. westerncape.gov.za/dept/human-settlements.