{"id":1841,"date":"2019-05-23T09:20:24","date_gmt":"2019-05-23T09:20:24","guid":{"rendered":"https:\/\/propertyprofessional.co.za\/flisp-how-can-first-time-homebuyers-qualify\/"},"modified":"2023-05-21T09:44:36","modified_gmt":"2023-05-21T09:44:36","slug":"flisp-how-can-first-time-homebuyers-qualify","status":"publish","type":"post","link":"https:\/\/propertyprofessional.co.za\/2019\/05\/23\/flisp-how-can-first-time-homebuyers-qualify\/","title":{"rendered":"FLISP \u2013 how can first-time homebuyers qualify?"},"content":{"rendered":"

MAIN IMAGE: Meyer de Waal, director of MDW Inc. Attorneys<\/strong><\/p>\n

Property experts are forecasting that the lower end of the property market will continue to see brisk activity this year. The FLISP government subsidy can go a long way to helping first-time homebuyers in the lower income bracket realise their dream of owning a home of their own.<\/p>\n

The Finance Linked Individual Subsidy Programme (FLISP) was introduced in 2012 by government to assist the growing group of first-time homebuyers in the so-called \u2018gap\u2019 market \u2013 meaning those who are \u2018too rich\u2019 to qualify for a RDP home but \u2018too poor\u2019 to easily buy a home of their own without some form of financial help.<\/p>\n

The scope of the FLISP programme was enlarged last year to make it accessible to more first-time homebuyers. People who qualify can now apply for a FLISP subsidy from R27\u00a0960 up to R121\u00a0626 that can be used to pay the home loan deposit or to decrease the size of the home loan.<\/p>\n

\u201cIf one follows correct steps to apply, the subsidy can go a long way to assisting a first-time buyer in what could be a very financially stressful time when buying a home, says Meyer de Waal, director of MDW Inc. Attorneys, one of the founding members of the Attorney Realtor Hub and FLISP assistance services.<\/p>\n

This subsidy is open to those who earn between R3 501 and R22 000 per month (combined gross household income) and who meet the qualifying criteria. The home loan of the buyer must first be approved, and the buyer must be a South African citizen and be married, co-habiting or single with a dependent. The new buyer must never have benefitted from a similar subsidy before; e.g. an RDP house.<\/p>\n

Many first-time homebuyers will in most cases first find a property and sign all the legal documents to secure the property, and then start the process to find out if they qualify for a home loan and a FLISP subsidy.<\/p>\n

\u201cS<\/em>tart at the \u201cback\u201d \u2013 which actually ought to be the first step for any home buyer,\u201d explains de Waal. \u201cMost home buyers first find a property and then the \u201cworry\u201d starts for how much they will qualify. We first look at the financial side \u2013 and only then to find a property that matches your budget\u201d, says De Waal.<\/p>\n

\u201cIf the applicant is a first-time buyer, the first thing to do is find out if he or she qualifies for this subsidy, then follow the rest of the application process steps listed below,\u201d says Verna Pugin of CM2 Group who heads the FLISP service as a private service to home buyers.<\/p>\n

\u201cThis might seem like a complicated process and may scare away many first-time home buyers, but we have simplified the process and will guide them every step of the way.\u201d<\/p>\n

This is how it works:<\/strong><\/p>\n