The Social Housing Finance Corporation (SHFC) is a key government agency in the Philippines dedicated to providing affordable housing solutions for low-income and informal settler families. Its main goal is to empower Filipino communities by offering accessible financing options for land acquisition, housing construction, and site development. Through partnerships with local government units (LGUs), developers, and people’s organizations, SHFC helps turn informal settlements into secure, livable, and legally recognized communities.
SHFC’s loan programs help make housing more accessible to those who need it most—like those families living in danger zones, disaster-prone areas, or informal settlements. By knowing about these programs, Filipinos can take proactive steps toward securing safe and permanent homes with flexible and affordable payment terms. Understanding these opportunities can be the first step to breaking the cycle of poverty, improving quality of life, and building resilient, self-reliant communities across the country. If you are among the intended beneficiaries of these programs, then read on to learn more about the available options for you.
Types of Loan Programs Offered under the SHFC
There are numerous loan options available under various government agencies, but if you are looking at the offerings from the SHFC, then it’s a good first step for you to check on the goals and purposes of these programs first before diving into the actual program particulars. You can learn more about that by checking the general categories by which these programs fall under first.
- Community-Based Housing Loan Programs: These programs empower organized communities or LGUs to acquire land, develop sites, and build homes for informal settler families.
- National Government Housing Programs (with SHFC as implementer): These are large-scale housing initiatives spearheaded by the national government, with SHFC supporting implementation for eligible beneficiaries.
- Developer and LGU Financing Support Programs: These provide funding to housing developers and LGUs to jumpstart or complete socialized housing projects.
- Risk Protection / Guarantee Programs: These aim to encourage private lenders to support low-cost housing by protecting them from borrower default risk.
Knowing the type of loan programs offered by an agency allows you to have a broad or generalized idea of the program goals and objectives of the institution. It usually helps applicants identify the programs they need or qualify for much more easily, and in the peocess, eliminates the need to check on each program type manually one by one as well.
List of SHFC Loan Programs
Now that you are aware of the purpose for each program, you can go ahead and check on the actual program details, to check if this is something that fits your needs.
1. Community Mortgage Program (CMP)
Provider: Social Housing Finance Corporation (SHFC)
The Community Mortgage Program (CMP) is a housing loan program in the Philippines for low-income and informal settler families. It allows organized community groups to borrow money to buy land, improve their living areas, and build homes. This helps families get secure, legal housing and avoid forced eviction.
Purpose: To help informal settler families (ISFs) legally own land, build homes, and improve their communities through affordable housing loans.
Features and Benefits:
- Low-interest loans at 6% annually
- Long repayment terms of up to 25 years
- Legal land ownership and security of tenure
- Community-led project planning and development
- Different loan packages for land, housing, and site development
- Flexible housing options (on-site, relocation, farm lots, vertical housing, etc.)
- Special programs for IPs, industrial workers, displaced families, and disaster victims
- Includes support for post-disaster recovery and peace process housing
- Encourages self-reliant and sustainable communities
2. Localized Community Mortgage Program (LCMP)
Provider: SHFC
The LCMP is a housing loan program that helps local government units (LGUs) buy land for their low-income residents. It promotes community land ownership, either in their current location or a new relocation site. SHFC provides the financing, and the LGU takes charge of the project.
Purpose: To help LGUs acquire land for informal settler families through community-based land ownership.
Features and benefits:
- Open to cities and municipalities (provinces may assist).
- LGU becomes SHFC’s official partner and manages project steps like site inspection, loan screening, and mobilizer accreditation.
- SHFC grants LGUs a credit line of up to ₱50 million (valid for 1 year).
- SHFC covers:
- Up to 75% of the project cost for 1st–4th class cities.
- Up to 90% for 5th–6th class cities and all municipalities.
- LGU contributes via:
- Land ownership
- Cash payments
- Site development
- Project types:
- On-site: for land currently occupied by residents.
- Off-site: for new relocation areas.
- Loan package per household:
- ₱100,000 for land
- ₱30,000 for site development
- ₱120,000 for house construction
Total: up to ₱250,000
- Interest rate: 6% annually
- Loan term: up to 25 years
- Monthly payment collection handled by the community association (CA)
- CAs may replace members who default on payments
- LGUs earn incentives (1/6 of collected interest) if collections are 90%–100% efficient
- Security deposits required:
- LGU: equivalent to 6 months of CA loan amortization
- CA: 3 months advance payment + 1-year mortgage insurance
3. Pambansang Pabahay Para sa Pilipino (4PH) Program
Provider: SHFC under DHSUD
The 4PH Program is a government housing initiative for low-income Filipinos. It offers affordable housing units with subsidies and low interest rates. SHFC helps implement this program, focusing on socialized housing for formal and informal workers.
Purpose: To provide decent, affordable homes for Filipinos, especially those from marginalized and vulnerable sectors.
Features and Benefits:
- Affordable housing units with government subsidy
- Low interest rates through DHSUD support
- Additional financial aid from LGUs
- Up to 30 years repayment term
- Housing located near schools, hospitals, and workplaces
- Flexible payment options (online, salary deduction, etc.)
- Open to first-time and low-income homebuyers
4. Abot Kaya Pabahay Fund – Development Loan Program (AKPF-DLP)
Provider: SHFC
This program helps build affordable housing for low-income families in urban areas. AKPF-DLP funds site development and construction of houses or buildings under socialized housing projects. It’s available to developers, LGUs, corporations, and sole proprietors with accredited partners.
Purpose: To provide funding support for the development and construction of affordable housing projects under socialized housing initiatives like CMP, LCMP, and HDH.
Features and Benefits:
- Open to LGUs, corporations, and real estate developers with experience in socialized housing
- Loan funds can be used for:
- Site development and housing construction
- LGU-led housing projects
- High-density housing units
- Small-scale inner-city housing projects
- Foreclosed property development for socialized housing
- Loan amount:
- Up to ₱15 million for CMP and LCMP
- Up to ₱75 million for HDH projects
- Fixed interest rate: 6% per year
- Loan term: Up to 36 months (3 years), depending on project progress
- Collateral: Clean-titled property under the Torrens Title System
- Loan releases:
- Initial: Up to 50% of collateral value
- Next tranches: Based on project progress
- Payment terms:
- Quarterly payments starting 18 months after the first release
- Penalty for late payments: 18% per year
- 10% retention fee for quality assurance; released after completion and inspection
- Insurance required for vertical construction (Contractor’s All-Risk Insurance)
- Projects must follow SHFC’s approved timeline or risk cancellation
- Priority given to applicants with at least 5% equity contribution
- Valid prequalification for one year to allow time for planning
5. Abot Kaya Pabahay Fund (Cash Flow Guarantee System)
Provider: SHFC under the Home Guaranty Corporation (HGC)
This program is part of the government’s social housing initiative. It helps low-income families access affordable housing through guaranteed support. The program also protects lenders by covering payment risks.
Purpose: To support socialized housing projects and ensure stable cash flow for housing loans, encouraging more financial institutions to support low-cost housing for Filipinos.
Features and Benefits:
- Covers housing loans of ₱225,000 and below
- Interest rate covered: Up to 12% per annum
- Eligible loan purposes:
- Lot purchase
- House and lot purchase
- Home improvement
- Guarantees the following in case of borrower default:
- Unpaid loan balance
- Accrued interest
- Foreclosure expenses (for mortgages)
- Accepted loan types:
- Mortgages
- Contracts to Sell (CTS) seasoned for at least 24 months
- Eligible funders:
- SSS, GSIS, Pag-IBIG Fund (HDMF), or their accredited lenders
- Funding agencies must verify borrower eligibility and complete necessary documents
- Call on guarantee can be filed if borrower defaults:
- After 3 months of missed payments for CTS
- After foreclosure for mortgages
- Guaranty benefit payment:
- 80% of principal + interest (within 30 days)
- 100% of foreclosure costs (mortgages only)
- Denial of guaranty may happen if:
- Borrower or documents are not eligible
- Call is not filed on time
- Fund takes over the loan/property after payout
- Borrowers may redeem the property within the redemption period
Video: Home-A-Loan – SHFC Home Loan Programs
As an agency, the SHFC was designed to help low-income families and informal settlers gain access to safe, affordable, and legal housing. They do this by offering different kinds of housing loan programs that support land purchase, site development, and home construction. SHFC works closely with communities, local governments, and developers to make housing more accessible and inclusive for everyone. Knowing about SHFC and its loan programs is important because it gives hope and real options to families who dream of having a home they can truly call their own. These programs can make a big difference in improving lives, providing security, and building stronger communities, so if you want to learn more about how these housing programs work and how you or someone you know can benefit, watch the video below.