GENERAL RULES OF FINANCING APPLICATION

Does LPPSA allow housing financing applications to buy shop house?
Application for housing financing to purchase a shop house is allowed provided that the shop house has the characteristics of a residential house that has the function and structure of living room, bedroom, bathroom and kitchen permanently. 

Does LPPSA allow a revaluation to be made on the property after the applicant answers the Letter of Acceptance?
No

Does LPPSA allow financing applications to purchase apartments including parking lots?
Application for financing to purchase an apartment including a parking lot is allowed provided the applicant encloses 2 separate agreements for the purchase of an apartment with a separate parking lot. If the purchase of an apartment that has a parking lot in the same building, then the 2 agreements are not required. 

Does LPPSA allow financing applications to purchase properties on agricultural status land?
Application for financing (individual) to purchase property on land with agricultural status is allowed. For joint loan applications, the terms of the area are subject to the National Land Code 1965 / Sabah Land Ordinance (Sabah Cap 68) / Sarawak Land Code 1958 and the conditions / regulations of the State Land and Minerals Office. 

How long is the approval process for buying property from a seller who is still indebted to LPPSA (Counter Purchase)?
The approval period is 3 working days.

Does LPPSA allow individual financing applications to purchase properties with two names in the sale and purchase agreement?
Yes

Does LPPSA allow financing applications to purchase low-cost houses under construction as well as apply for additional work?
Financing applications for the purchase of low cost houses are allowed to applicants from Support Group II provided that the Sale and Purchase Agreement for low cost houses and the Contract Agreement for additional work are submitted simultaneously together with the Financing Application Form. Application for additional work must be made simultaneously with the construction of the house and the amount of financing for the additional work allowed does not exceed RM20,000.

Does LPPSA allow the application to extend the financing repayment period?
No

What is the difference between Type 1 Financing (Home Finish) and Type 1 (Secondary Strata / Individual) and Type 1 (Secondary Assignment)?
Type 1 financing is financing to purchase a completed property and the financing application process is the same regardless of the property status of the property. The difference only involves the use of different securities documents in the collateral process as stated in the relevant appendix. 

Does LPPSA allow housing financing applications to purchase completed residential parcels but Strata Titles have not yet been issued?
Yes, a financing application can be made under the condition of purchasing a secondary property assignment. However, the buyer is not allowed to sell the parcel of the house to a third party until the Strata Title is issued.

Does LPPSA allow housing financing applications to purchase completed residential parcels and Strata Titles have been issued but the seller's name has not yet been registered as a registered owner in the title?
Yes, a financing application can be made under the condition of the purchase of a mortgaged secondary property. 

Does LPPSA allow financing applications to settle bank debt balances (Type 5) on properties with two names?
Can be considered according to the terms and conditions set.

The applicant has purchased the property through Bank financing and intends to settle the balance of the bank financing debt through LPPSA housing financing. Is the applicant eligible to apply for financing if:
i) Individual / Strata title has not been issued?
ii) Individual / Strata title has been issued but has not been transferred to the applicant's name & pledged to the Bank?

i) Yes, provided the property payment 100% has been issued by the Bank to the developer.
ii) No.

What additional documents are required for the financing application to purchase LPPSA auction properties and how long will the completed documents need to be submitted to LPPSA?
Additional documents required are:
1. Contract of sale from the court / land office; or
2. Confirmation letter from the land administrator confirming the applicant is successful in the auction.

The document must be submitted after the successful auction.

What is the difference between housing financing scheme Public Sector Housing Financing Scheme (SPPSA) and Islamic Public Sector Housing Financing Scheme (SPPSAi)?
The SPPSA Housing Financing Scheme is a conventional financing scheme. While the SPPSAi Housing Financing Scheme is an Islamic financing scheme. 

Does LPPSA allow housing financing applications to purchase properties between siblings?
Yes, a financing application to purchase property between siblings is allowed.

Does LPPSA allow a financing application to build a house on a couple's land?
Application for financing to build a house on land owned by the couple is allowed provided the couple is the joint owner of the land.

Does LPPSA allow financing applications to purchase property owned by parents / parents who are still under LPPSA financing?
Can be considered according to the terms and conditions set.