How to Improve Your FLISP Eligibility Score

30 Mar How to Improve Your FLISP Eligibility Score

Posted at 12:00h in Latest News by

Owning your first home is one of life’s biggest milestones, and FirstStep Housing is here to help you reach it. Grab your government housing subsidy this year through the Finance Linked Individual Subsidy Programme (FLISP), and achieve a goal that will change your life and the lives of your dependants. Our team have worked with South Africans to achieve homeownership on a budget, and we can help you, too.

You may be wondering how to navigate the process and if you meet the FLISP qualifying criteria. As experts in all things related to the FLISP subsidy, our team understands that your eligibility for FLISP is not fixed – there are steps you can take to improve your chances of a successful outcome when applying for this housing grant. Begin by understanding who FLISP is intended for.

FLISP and Your Personal Profile

Before applying, confirm that your profile matches the criteria for eligibility.  If it does not, let First Step Housing show you how to improve your FLISP eligibility score. These factors are evaluated before FLISP can be approved:

  • Your combined monthly household income must fall between R3 501 and R22 000 gross (before tax).
  • You must be employed. Whether you work for yourself or a company, you need to prove a consistent monthly income.
  • If you have already owned a home or received a housing grant, you cannot apply for the FLISP subsidy.
  • Since FLISP is used to supplement a loan, you need to be approved for a home loan when you apply for FLISP.
  • When you apply, you need to have an offer to purchase or sales agreement in place for the property you want to buy.
  • You must be a South African citizen or permanent resident over 18 years of age.
  • You must be married, cohabitating, or sharing your home with financial dependants

Improve your chances of being approved for a subsidy

Tips to Improve Your FLISP Application Success:

When it comes to helping clients secure government subsidy housing, knowing how to improve your FLISP eligibility score makes a difference. Firstly, it is important to assess your credit score and work to improve it if necessary – not because your credit score is checked when applying for FLISP, but because it will help you qualify for a home loan.

Banks also check your debt-to-income (DTI) ratio when determining how much they will lend you. If this is too high, you may not qualify for a decent loan amount – try to keep your DTI ratio below 30%. You can reduce the ratio amount by paying off your smaller debts one at a time, which makes a significant difference.

It is also important to choose the right property to buy. For the best chance of FLISP approval, the property should align with your income bracket. Our FirstStep Housing team can guide you here, since you must be buying a home to apply for FLISP, unless you’re planning to build a home on a serviced residential stand you already own.

Have the following Ready:

For your FLISP application process to go smoothly, we will need the following to assist:

  • Details and OTP/sales agreement of the property you’re purchasing
  • SA Identity Documents of each prospective buyer
  • Three months’ recent payslips of all prospective buyers
  • Birth certificates of all minor dependants within your household
  • Marriage certificate/divorce order and settlement agreement, if applicable

Start by improving your FLISP eligibility score today for a brighter tomorrow. Are you ready to claim government subsidy funds for your first house? We are here to help you achieve this – APPLY NOW!