FLISP

What is FLISP?
Finance Linked Individual Subsidy Program, better known as FLISP, was developed by the Department of Human Settlement to enable sustainable and affordable first time home-ownership opportunities to South African citizens and legal permanent residents earning between R3 501 and R15 000 per month, (the “affordable” or “gap” market).
Individuals in these salary bands generally find it hard to qualify for housing finance; their income is regarded as low for mortgage finance, but too high to qualify for the government “free-basic-house” subsidy scheme.

What to do with FLISP?
Qualifying applicants may use FLISP to do one of the following:-
- buy an existing, new or old, residential property
- buy a vacant serviced residential-stand, linked to an NHBRC registered homebuilder contract; or
- build a residential property on a self-owned serviced residential stand, through an NHBRC registered homebuilder
The once-off FLISP subsidy amount ranges between R10 000 and R87 000, depending on the applicant’s monthly income.
The maximum price of a property that can be financed through FLISP is R300 000.

Who can apply?
FLISP Applicants must meet the following qualifying criteria:-
- South African citizen with a valid ID; or permanent residents with a valid permit
- over 18years and competent to legally contract
- never have benefitted from a Government Housing Subsidy Scheme before
- have an Approval in Principle of home loan from an accredited South African financial institution
- first time home buyer, earning from R3 501 to R15 000 per month
FLISP is for residential properties in formal towns where transfer of ownership and registration of mortgage bond is recordable in the Deeds Office.

Important Documents
The following CERTIFIED COPIES are required as Supporting Documents when applying for FLISP:-
- RSA Bar Coded Identity Document (ID)
- Bar Coded Permanent Residence Permit (where applicable)
- Birth Certificates / RSA IDs of all financial dependents (where applicable)
- Proof of Foster Children Guardianship (where applicable)
- *Marriage Certificate, Civil Union Certificate or Cohabiting Affidavit proof of Partnership (applicable)
- Divorce Settlement (where applicable)
- Spouse's Death Certificate (where applicable)
- Proof of Monthly Income
- Home Loan Approval in Principle/Grant Letter from an accredited Lender
- Agreement of Sale for the residential property
- Building Contract and Approved Building Plan (where applicable)
* Affidavits required for informal marriages solemnised under the SA Civil Law, accompanied by sworn statements to prove the authenticity of the relationship

FLISP Summarised
FLISP enables qualifying beneficiaries to reduce the initial mortgage loan amount or augment the shortfall between the qualifying loan and the total house price
Qualifying Criteria for FLISP:
- RSA citizen or Permanent Residents
- over 18years and competent to legally contract
- First time Housing Subsidy Scheme beneficiary
- have an Approval in Principle for a Home Loan
- Monthly Income from R3 501 to R15 000
The once-off FLISP subsidy amount ranges between R10 000 and R87 000, depending on monthly income. FLISP may be used for the following:-
- buy an existing, new or old, residential property
- buy a vacant serviced residential-stand; or
- build a residential property
The maximum price of a property that can be financed through FLISP is R300 000.