The NHFC is structured to drive activities that demonstrate workable models for affordable housing finance and developments in the Gap market. This entails blending an appetite for risk with the ability to create innovative housing solutions for the low- to middle-income target market.

The NHFC provides housing finance to intermediaries, mainly Retail Finance Intermediaries, Property Practitioners/Developers and Social Housing Institutions. The NHFC also supports and capacitates emerging housing intermediaries, through partnerships with other local and international organisations. In instances where the entity requires funding for mixed or integrated housing development, a minimum of 30% of the units must fall within the NHFC defined target / affordable market.

The NHFC offers a range of wholesale housing finance options through two core Funding Programs, namely PROJECTS and COMMERCIAL Divisions; which, eventually and indirectly enable homeownership, rental, and improvements to property, for the end-beneficiaries.

The NHFC defines the End-beneficiary, Gap housing market, Home-seekers or the affordable housing target market as any South African, individual or household, with a monthly income that ranges between R1 500 and R15 000. This market sector is mostly able to contribute towards its housing costs, but finds it hard to access bank-funded housing finance.

The NHFC does not provide direct housing finance to end-beneficiaries (home seekers), but rather enters into partnerships with the following entities:

Depending on where an end-beneficiary works or wishes to live, they may approach any of the NHFC partner Social Housing Institutions, Developer/Landlords, Retail Finance Intermediaries (RFI’s)/Banks directly from the Lender Contact List. The scope of NHFC’s Funding Programs extends to housing entities and/or institutions that deliver the following:-

  • housing projects and/or intermediaries that benefit the housing and/or housing finance needs of the defined NHFC end-beneficiary target market
  • development of social housing and/or rental housing projects through Social Housing Institutions (SHI) and/or Property Practitioners (Developers and Landlords)
  • retail home loans and small home improvement loans to the lower end of the affordable housing market

The NHFC 'may' finance land purchase by a Developer if linked to an approved housing project, provided the implementation of the housing project commences within six months of the land acquisition; and the submission of a business and project plan as project implementation support documents.

  • land must have access to, or, is assigned to receive bulk services

The NHFC 'may' finance project related infrastructure development, provided such costs relate to the project being financed, such as:

  • internal roads, streets, paving, recreational areas, etc.
  • electrical installation, street lights, unit connectivity , etc.
  • sewerage, storm water drainage , etc.

The NHFC does not fund the following:

  • land purchase in isolation of an approved housing development project
  • establishment of site offices, initial wages, transportation of building materials and/or workers
  • working capital outflows required in the start-up phase of the project

The NHFC housing finance funding may be up to a maximum of 90% of the costs of a housing project, and the client may be required to provide equity for the balance. The cash-flow of the project determines the exact amount of equity required - entities seeking NHFC housing finance must meet the criteria, terms and condition as defined by the NHFC Credit Committee (see the Qualifying Criteria section for further details)

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