Community Mortgage Program Fast Facts

SHFC facts for community mortgage program

Your Browser Doesn't Support Canvas. Showing the Text Content of the PDF Instead: CMP OVERVIEW AND OBJECTIVES
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 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
beneficiaries
• 100% appraisal

 Beneficiaries living in
danger zones/areas;
 Beneficiaries affected by
government infrastructure
project; and
 Beneficiaries with threat of
eviction or actual
ejectment thru a
case/court order
• Maximum
of
200
beneficiaries
• 100% appraisal

the extent of their affordability.

Land Acquisition
Site
Development/Community
Upgrading
House Construction
Loan Package

A CA account is considered in default if it is not up to date
with its loan amortization payments equivalent to three months.
PENALTIES
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 delay.
INSURANCE
For the duration of the loan, there shall be a Mortgage

Revised Loan Entitlement Amounts applicable for both Metro
Manila and highly urbanized cities, and other areas, without
distinction, have been increased as follows:
Purpose

DELINQUENCY / DEFAULT

Maximum
Loan
Amount
P 100,000.00
30,000.00

Monthly
Amortization

CMP LOAN COLLATERAL

Insurance on the lives of the principal borrowers as identified in

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:

the Master List of Members on a yearly renewable term basis.
The

insurance

premiums shall

be

included

in

120,000.00
250,000.00

1.

The title to the land is free from all liens and encumbrances

2.

The land is not classified as agricultural;

application

3.

685.30
205.59

The

The determination of final loan amount shall be subject to existing CMP
guidelines

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 CMP loan will bear 6% interest per year based on the

The landowner should have the legal capacity to sell or
transfer the subject property for loan collateral under the

outstanding balance and will be payable over a maximum period of
25 years in equal monthly amortizations.

CMP.
BORROWERS

DUE DILIGENCE
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

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

CMP PROJECT CLASSIFICATION

release;
2. Certifies under oath that he/she has not been a recipient of any
OFF-SITE
Homogenous group living
outside the project area but
has to be relocated due to
any of the following reasons:

SUBSTITUTION OF BENEFICIARIES / FORECLOSURE
The Master list of members submitted as part of the CMP loan
are

deemed

final

and

may

not

be

subject

to

A member may be substituted due to the following:
1. A member is in default in the payment of his/her share in
the monthly amortization of the CA loan; and
2. A member voluntarily waives his/her rights to the allocated
lot/property in favor of the CA.
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.
COMMUNITY MOBILIZERS (CMP-M)
Accredited CMP-Ms are tasked to assist informal settlers in

ELIGIBILITY OF CMP BORROWERS

application to loan release.

ON-SITE
Members of the Community
Association (CA) are already
living/residing in the project
site

monthly

substitution during loan application processing period.

at the time of release of the CMP loan;

834.60
1,725.49

the

amortizations of the members.

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.

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.
CMP-Ms shall be entitled to a service fee equivalent to two
percent (2%) of the loan amount or P1,000.00, per member,
whichever is higher.
Revised 08/20/14

I.

CHECKLIST OF REQUIREMENTS
PROJECT APPLICATION

3. Notarized Proof of Payment of Equity;
4. Notarized Memorandum of Agreement between the landowner
and CA or Letter of Intent to Sell from the landowner
Letter of Acceptance by the CA
5. Notarized Lease Purchase Agreement (LPA);
6. Locational Plan of lot sold to CA;
7. Schematic Subdivision Plan duly signed by a licensed G.E.
(must show the area per lot, the excluded lots, if any and other
information pertaining to the site’s physical features which may
affect the collateral value)

CMP MOBILIZERS’ (CMP-M) PARTICIPATION
(Include in all 4 project folders)
A. Duly accomplished application (CMP-001)
B. Duly accomplished CMP-M Information Sheet (CMP-002)
For New Private Applicants
1. SEC/CDA Registration and Articles of Incorporation/Code of Bylaws;
2. Bio-data of officers indicating past and present positions held in
relation to their involvement in community-based economic/social
development projects. (Please include references);
3. Board Resolution or Secretary's Certificate (Re: community
coordinating activities on the project); and
4. Track record in CMP and/or social housing development projects,
i.e. summary of CMP and/or social housing development projects
undertaken.

D. Mortgage Examination Department
1. HLURB Certified Copy of the Certificate of Registration, Articles
of Incorporation, By-Laws
Updated General Information Sheet
2. Notarized Memorandum of Agreement between the landowner
and CA
Letter of Intent to Sell from the landowner
Letter of Intent to Buy of the CA
3. Latest RD certified copy of Present Title, Latest RD certified
copy of 1st Back Title, Latest RD certified copy of 2nd Back
Title
4. Notarized Board Resolution/Secretary's Certificate issued by
the CA to its representative;
5. Latest Tax Declaration showing RESIDENTIAL classification;
6. Updated Real Property Tax Clearance;
7. Updated Special Power of Attorney (SPA) for Individual
Landowner or Secretary’s Certificate if the landowner is a
Corporation;
8. SEC Certified Copy of Incorporation Papers and updated GIS if
the landowner is a Corporation
9. Two (2) Valid Government issued IDs of the individual
landowner/s and/or authorized representative duly certified by
the CMP-M. If the landowner is a Corporation, IDs of the
representative and Corporate Secretary should be submitted
10. TIN ID of Individual Landowner
11. BIR Certificate of Registration of CA
12. BIR Certificate of Registration of Landowner – Corporation
13. Real Estate Mortgage (REM);
14. Deed of Assignment of LPA from CA to SHFC;
15. Promissory Note;
16. Collection Agreement between CA and SHFC;
17. Deed of Assignment of Loan Proceeds from CA to landowner;
18. Loan Agreement

For Participating Local Government Units (LGUs)
1. Council/Sangguniang Bayan Resolution; and
2. Permanent unit/department who will handle processing of CMP
For Other Government Entities
1. Copy of charter (if entity is not involved in housing); and
2. Authority from board/head of office to do CMP community
coordination;
3. Bio-Data of Officers
For Existing Community Mobilizers
At least 80% Collection Efficiency Rating or Performance Rating

II.

FOR LETTER OF GUARANTY
A. Project
Accreditation,
Evaluation
&
Monitoring
Department
1. CMP Community Profile;
Certified
Copy
of Registration,
2. HLURB
Articles
of
Incorporation, By-Laws
Updated General Information Sheet;
3. Memorandum of Agreement between CA and CMP-M;
4. Masterlist of Beneficiaries w/ Loan Apportionment (CD Copy);
5. Notarized Memorandum of Agreement between the landowner
and CA or Letter of Intent to Sell from the landowner and
Letter of Intent to Buy of the CA
B. Technical Services Department
1. Lot Plan with Technical Descriptions of the proposed CMP Site,
duly signed by a licensed Geodetic Engineer (G.E.);
2. Vicinity Map showing the name of the roads leading to the site
and the land-marks (must show the Socio-economic facilities
/establishments within 2 to 5-km radius and distances from the
Proposed CMP site)
3. Schematic Subdivision Plan duly signed by a licensed G.E.
(must show the area per lot, the excluded lots, if any and other
information pertaining to the site’s physical features which may
affect the collateral value)
4. Topographic Map if the site has sloping terrain;
5. Latest RD certified copy of Present Title, Latest RD certified
copy of 1st Back Title, Latest RD certified copy of 2nd Back
Title
6. Latest Tax Declaration showing RESIDENTIAL classification;
7. Zoning Certification
C. Loan Examination Department
1. Masterlist of Beneficiaries with Loan Apportionment (CD Copy);
2. Proof of CA savings equivalent to three (3) months
amortization and one (1) year MRI premium (both savings
and MRI must be deposited in favor of the SHFC prior to LOG);

III.

IV.

For Loan Release
1. Notarized Deed of Absolute Sale;
2. Cancelled TCT in the name of landowner (with annotation of
Deed of Absolute Sale) or SPA / Secretary's Certificate of
Landowner - Corporation
3. TCT in the name of the CA with annotation of the REM
and the Secretary’s Certificate issued by the CA to its
representative;
4. Register of Deeds certified copies of Deed of Sale,
REM and Secretary’s Certificate issued by the CA to its
representative
5. Tax Declaration in CA's Name
6. Cash Deposit equivalent to three (3) months amortization &
one (1) year MRI premium
Others
1. DAR conversion order if the title is a Certificate of Land Award
(CLOA) or Emancipation Patent

SOCIAL HOUSING FINANCE CORPORATION

 www.shfcph.com

For inquiries please call:
Community Support Unit
 750-63-37
750-63-46
local 140 & 530