First Home Finance Review: Home Loans for Low Credit and Income in SA

First Home Finance, previously FLISP, is a government assistance programme for South Africans needing help with home loan approval. This initiative is aimed at first-time buyers whose credit scores fall below the usual 610+ minimum or whose incomes range between R3 501 and R22 000 per month.

The subsidy amount ranges from R30 001 up to R130 000, with larger amounts for lower income applicants. The subsidy can be used as a deposit, thereby improving your chances of home loan approval with South African banks. No specific interest rate or loan term applies, as approval and terms depend on your chosen bank’s assessment.

Comment obtenir un premier financement immobilier ?

• Ensure you meet the basic criteria: South African citizenship or permanent residency, monthly income within the set range, and first-time buyer status.
• Prepare supporting documents: proof of income, ID, and details of your dependents or marriage.
• Complete the application on the official provider’s online platform.
• The provider will handle the paperwork process and keep you updated on your application status.
• Once approved, use your subsidy as a deposit or towards your home loan balance.

Pros: Why Choose This Government Loan?

First Home Finance stands out by dramatically improving approval chances for those with lower credit scores. The government-backed subsidy means banks view your application more favourably.

Another major plus is flexibility: the subsidy can offset the deposit or pay down your bond, which can reduce monthly repayments and help secure better rates.

Cons: What to Consider Carefully

The programme is available only to low-to-middle income earners who haven’t owned a home before, so eligibility is limited. Not everyone qualifies.

Additionally, the exact home loan terms ultimately depend on the bank’s risk assessment, so rates and offers may vary even with the subsidy.

Notre verdict

First Home Finance is a superb solution for South Africans whose credit scores or incomes hold them back from homeownership. The subsidy increases the chance of approval and can reduce your long-term costs.

If you meet the qualifying criteria, applying is straightforward and could accelerate your journey to owning your first home. It is a valuable option for many new buyers.