2008-2009 Special Mortgage Credit Program for Staff Belonging to the Federal Public Safety Service

The Program grants 22,000 traditional mortgage credits without any aleatory procedures intervening.

The Program will be in effect until December 2009 or when 22,000 credits are granted, whatever happens first.

Goals

To reward and stimulate the performance of trusted workers, especially those who work in the police forces.

To promote the social acknowledgment of the work carried out by the Public Safety corporations with a spirit grounded upon the highest ethical and moral levels.

Requirements

They must have at least 9 bi-monthly periods paying their dues to ISSSTE's Housing Fund.  If right now you do not have the minimum 9 bi-monthly periods, you may be able to comply with this requirement before the conclusion of the Program and at that time your credit will be authorized.

You must not have been the recipient of a previous FOVISSSTE credit.

You must be active in the service at the moment the credit is granted and when the title deed is signed.

You must not have applied for a credit the solution to which is still ongoing.

THE CREDIT MAY BE USED FOR:

New Housing

o   Acquisition

o   Building on a plot of your own

Used Housing

o   Acquisition

o   Housing repair or improvement

o   Enlargement

o   Payment of liabilities (payment of debts to other financial entities).

The maximum amount of credit to be granted in favor of a rightholder will depend on his/her basic wages used as a basis for the payment of dues and, once credit is granted, the maximum withholding which will be made against his/her basic wages used as a basis for the payment of said dues may not exceed 30% thereof (payroll check withholding).

·         The maximum credit amount that can be granted is $545,169.00 pesos.

·         The maximum term for which a credit may be granted is 30 years.

·         The applicable interest rate is between 4% and 6%, depending upon the wage level.

·         Credit balance updating will be made as per the general minimum wage in effect in the Federal District (Mexico City).

7 steps you must take in order to exercise your credit for the Acquisition of a New or Used House

1- Consult SSP's webpage in order to know the authorized amount of the credit

Consult the webpage of the Secretariat of Public Safet at http://originacion.fovissste.com.mx/Originacion/cgi-bin/ssp/LoginSSP.aspx under the section "Mortgage Credits" or at the following webpage: http://originacion.fovissste.com.mx/Originacion/cgi-bin/ssp/LoginSSP.aspx and respond to the questions you will find there, in order to ensure that you get your credit.

If you cannot locate yourself in this consultation or in case you have any questions, you must go to your management linking officer, so that he may report the situation fo the SSP's Head Department who shall, at its turn, report it to FOVISSSTE so that incorporation or any necessary modifications can be carried out.

2- Get all documentation necessary to incorporate your file

6 documents are required:

·          Payment receipt for the latest bi-monthly payment received, through which you can demonstrate your are in active service.

·          This document will be exhibited at the beginning of the filing, at final verification of amounts and when you sign your title deed.

·          Most recent statement belonging to SAR's Housing Fund sub-account, containing the updated balance. This is issued by PENSIONISSSTE through the branches of BANSEFI.

·          An official, current identification, including your photograph and signature.

·          Proof of current address.

·          Service certificate (not the Unique Service Sheet) showing for how long you have contributed to FOVISSSTE.

·          Sole Population Registry Code (CURP, by its Spanish initials) slip.

3- Look for the house you want to purchase

In FOVISSSTE's website, located at http://www.fovissste.gob.mx, you may consult the housing offering registered in your State and your Municipality, by clicking on the Vivienda/Oferta de vivienda disponible link.

Choose the options that better adapt to your needs regarding the best conditions of quality, location and price.

Visit the housing developments you have selected in the town or municipality you wish to buy in, in accordance with the amount of your credit.

Evaluate the pros and cons of every option.

 Make sure all conditions are clearly set out: total price, payment conditions, delivery time, exact location in a housing project or in a building, which conditions must also be set out in the purchase contract.

Choose the house.

Make sure any payment made for the urpose of reserving or making a down-payment for the house is considered to be a part of the total price and such payment must be reflected in the title deed.

If your credit is for the purpose of purchasing a new house, the chosen option must be completely finished and in full enjoyment of all services.

Remember: you can choose your house freely and all paperwork is free of charge.

4- Choose a Financial Entity

Once you have decided upon the house you will be buying, choose the Financial Entity that will open your file and carry out the process of origination (building your file in order to formalize your credit).

A building firm or real estate developer can also open your file and take it to the Financial Entity chosen.

At this same webpage, consult the listing of Financial Entities authorized to formalize your credit for the purpose of purchasing a new house.

It is your obligation to follow-up on your credit's filing; you may do so at FOVISSTE's website: http://www.fovissste.gob.mx; follow the link: Consult your Credit Application's Progress Status

5- A date for signing the title deed will be programmed

When your file is complete and the credit amounts have been verified, the Financial Entity will contact the Notary Public and together they shall program a date for signing the title deed.

Do not miss your appointment.

6- Sign the title deed

On the date fixed for the signing of the title deed, you must appear before the Notary Public and exhibit an official identification.

The Notary Public may request you produce your Birth Certificate and that of your spouse, as well as the Marriage Certificate, if applicable, when signing the title deed.

Bring also your most recent payment receipt.

Any expenses deriving from the granting of your credit and the constitution of the mortgage before the Notary Public plus registering before the Public Record of Property shall be paid half by FOVISSSTE and half by the rightholder according to applicable payable fees at each location.

The 50% to be paid by the worker will be covered by the credit, without this meaning that the credit will increase.

Any taxes and rights of issuance of the title deed shall be covered by the worker.

Once the title deed is signed, the Financial Entity will be in charge of sending your credit file to FOVISSSTE in order to request the funds to pay the vendor.

FOVISSSTE receives your file, revises and validates it and sends the funds to the financial entity for the purpose of paying the credit.

The financial entity receives the funds and pays the vendor.

7- Get the keys to your house

Congratulations! You have completed all steps! Enjoy!

Starting on the next time you receive your bi-monthly payroll check, you will begin to repay your credit:

Every two weeks, a 30% of your basic wages will be withheld.

Your balance in the individual SAR sub-account will cover the first payment on the credit and will help you repay it from the start.

The payments the Entity you belong to will make once every two months in your name will also help repay your credit (without further affecting the wages you receive every two weeks).

Last Update: November 28th., 2008.