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Owning a home is a dream for many people. However, the price of houses, which continues to increase every year, makes it challenging for some individuals to afford one. Fortunately, there are subsidized housing programs provided by the government. The process of purchasing subsidized housing differs from regular housing as it involves specific requirements and procedures.
If you’re currently looking for subsidized housing, make sure to read this article to the end as Ingria Group will explain in detail how to buy subsidized housing.
Subsidized Houses Can Be Purchased with a Mortgage System
Subsidized houses can be purchased through a mortgage system (KPR or Kredit Pemilikan Rumah). FLPP (Fasilitas Likuiditas Pembiayaan Perumahan or Housing Finance Liquidity Facility) is one of the most commonly used subsidized housing mortgage programs. This program is managed by the Ministry of Public Works and Housing (PUPR).
In the mortgage system, prospective homebuyers can apply for loans from banks or financial institutions to pay for the subsidized house in installments over a certain period.
However, it is important to note that each bank or financial institution has different terms and conditions for providing subsidized housing mortgages.
Therefore, before applying for a mortgage, you must understand the applicable terms and conditions and compare various bank options to choose the one that best suits your needs and financial capacity.
Benefits of Buying Subsidized Housing with a Mortgage
The issue of costs is often a challenge when purchasing a house. However, with the FLPP mortgage, it can be an effective solution for low-income individuals to own decent housing without paying the full price upfront.
While the down payment (DP) for houses set by banks or developers is typically high, with FLPP, you can own a house by paying a down payment as low as 1% of the selling price.
Additionally, subsidized housing mortgages come with low-interest rates, affordable and fixed installments, and loan tenures of up to 20 years. Moreover, you are exempt from insurance premiums and VAT (Value-Added Tax).
How to Buy Subsidized Housing
The process of buying subsidized housing with the FLPP mortgage system involves several stages. Here's the explanation:
1. Meet the Required Criteria
The criteria for applying for a subsidized mortgage include:
- Indonesian citizen (WNI) residing in Indonesia.
- Over 21 years old or married.
- The applicant has never owned a house before.
- Has a monthly income not exceeding IDR 8 million.
- The applicant must have been employed or running a business for at least one year.
- Possesses a Taxpayer Identification Number (NPWP) and an Annual Tax Return (SPT) for personal income tax.
2. Prepare the Required Documents
After meeting the above criteria and finding your desired house, you can apply for a mortgage to one of the banks partnering with the Ministry of PUPR, such as BTN, BNI, BRI, Bank Mandiri, Bank Jatim, etc.
You will also need to prepare the following documents to apply for a subsidized mortgage:
- A booking letter from the developer that includes at least the house's selling price and address.
- Copies of your ID card, family card (KK), and marriage/divorce certificate.
- Latest salary slip or income statement.
- A copy of a Permanent Employee Appointment Letter or Work Certificate (for employees).
- Business License (SIUP), Company Registration (TDP), and Domicile Certificate, as well as the last 3 months' financial report (for entrepreneurs).
- Copies of Taxpayer Identification Number (NPWP) and Annual Tax Return (SPT) for personal income tax.
Once the mortgage application is approved, you will undergo an assessment and verification process by the bank or financial institution. After completing the evaluation and submitting all required documents, the prospective buyer can sign the credit deed and the sale-purchase agreement for the subsidized house. Following this, the buyer will begin paying the mortgage installments as per the agreed terms.
That’s how you can purchase subsidized housing with a mortgage. Make sure to choose the best subsidized housing from a trusted developer like Ingria Group. Since 2013, Ingria Group has been experienced in delivering high-quality subsidized housing projects, so you don’t have to worry about reliability. Let’s achieve your dream of owning a home with Ingria Group!
