We’ve all heard about the Pantawid Pamilyang Pilipino Program (4Ps), the flagship anti-poverty program of the Philippine government. But did you know that there’s another program, one that focuses on providing affordable housing for Filipinos?
We’re talking about the Pambansang Pabahay para sa Pilipino Program, better known as “4PH.” Initially catering to low-income families, the program has been expanded to include overseas Filipino workers (OFWs), regardless of their monthly income!
Image Credit: Philippine National Railways / Facebook
OFW Guide to Applying for Pambansang Pabahay para sa Pilipino Program
According to the Department of Human Settlements and Urban Development (DHSUD), the decision to include OFWs is part of Pag-IBIG Fund Circular No. 473, which presents the new guidelines of the Expanded 4PH Program. The move recognizes our hardworking kababayans abroad and their significant contributions to the country as “Bagong Bayani” or modern-day heroes.
“Alinsunod po ito sa utos ni Pangulong Ferdinand R. Marcos Jr. na palawakin ang 4PH para makinabang ang mas nakararaming Pilipino, kasama na ang ating mga bayaning OFWs (This goes in line with the directive of President Ferdinand R. Marcos Jr., which is to expand the 4PH so that it can benefit more Filipinos, including our modern-day heroes, the OFWs),” DHSUD Secretary Jose Ramon Aliling explained, as reported by the Philippine News Agency.
Expanded 4PH Program
The Expanded 4PH Program seeks to make it easier and more affordable for hardworking Filipinos to buy their own homes. Under this program, qualified members of the Pag-IBIG Fund may acquire a housing loan with a special subsidized interest rate of just 3% per annum for the first five years. This can be used to purchase a house and lot, condo unit, or even Pag-IBIG Acquired Assets.
Notably, all socialized housing units under the Expanded 4PH Program — including vertical and horizontal units — will be subject to the special subsidized interest rate for up to 10 years.
For instance, under the new rate, a horizontal unit that costs PHP 850,000 will require only PHP 3,583 as monthly amortization, as compared to PHP 5,233 at regular market rate. Likewise, a vertical unit costing PHP 1.5 million will require only PHP 6,324 under the new rate, compared to PHP 9,235 under the regular market rate.
Other than providing loans for the purchase of houses or condo units, the Expanded 4PH Program also covers costs for upgrading the said property, along with Estate Management Fees (EMF), non-life insurance (NLI) premiums, and other financial subsidies.
Image Credit: DHSUD / Facebook
Qualifications
To qualify for the Expanded 4PH Program, aspiring homeowners must meet the following criteria:
- First-time homebuyer or grantee;
- Falls under the income classification requirement (below PHP 47,855.82 monthly income if working in NCR, below PHP 34,685.82 monthly income if working outside NCR);
- Active member of Pag-IBIG Fund with no less than 12 months’ worth of contributions/savings at the time of application;
- Below 65 years old at the time of application and not above 70 years old at the date of loan maturity;
- With legal capacity to acquire and own real property;
- Has passed the background/credit and employment/business checks of the Pag-IBIG Fund;
- Has no outstanding Pag-IBIG Fund Short-Term Loan (STL) in arrears at the time of application; and
- Has no Pag-IBIG Fund Housing account that has been foreclosed, canceled, bought back, or voluntarily surrendered.
As mentioned earlier, OFWs may also apply under the Expanded 4PH Program — regardless of their monthly income. However, they must meet some of the criteria mentioned above, namely: (a) active Pag-IBIG Fund members; (b) first-time homebuyers; and (c) below 65 years old at the time of application and not above 70 years old at the date of loan maturity.
Requirements
As for the requirements, applicants need to prepare the following documents:
- Two (2) copies of filled out Housing Loan Application Form;
- Proof of income;
- One (1) valid ID; and
- Health Statement Form.
Proof of Income
For OFW applicants, they may submit any of the following as proof of income:
- Employment Contract. They can submit one (1) photocopy of their employment contract, which has been duly certified by the Department of Migrant Workers (DMW) or the Philippine consular office in their host country within the past 12 months.
- Certificate of Employment and Compensation (CEC). Applicants can submit one (1) original copy of the CEC, written on the Employer/Company’s official letterhead and issued within the past 12 months. For household service workers or domestic workers, they can submit the CEC signed by the employer, supported with one (1) photocopy of the employer’s ID or passport.
- Other Documents. Applicants can submit one (1) original copy of their bank remittance record, or one (1) photocopy of any of these documents: pay slip indicating income received and period covered, valid Overseas Workers Welfare Administration (OWWA) membership certificate, Overseas Employment Certificate (OEC), passport with appropriate working visa, or residence card/permit to stay that indicates “work” as the purpose.
List of Valid IDs
With regard to the valid ID requirement, applicants may submit any of the following: Philippine Identification (PhilID) Card, Passport (including foreign passports), Driver’s License, Professional Regulation Commission (PRC) ID, National Bureau of Investigation (NBI) Clearance, Police Clearance, Postal ID, Voter’s ID, Tax Identification Number (TIN) ID, Government Service Insurance System (GSIS) e-Card, Social Security System (SSS) Card, Senior Citizen Card, OWWA ID, Overseas Filipino Worker ID, Barangay Certification, Barangay ID, or similar documents bearing the picture of the member.
Procedure
To apply for the Expanded 4PH Program as an OFW, simply follow these steps:
- Choose a project from the list of available 4PH projects on the Pag-IBIG Fund website. Projects include house and lots, condominium units, and Pag-IBIG acquired assets that fall under the Expanded 4PH Program.
- After choosing a project, click “Magpalista Na” to sign up. Pag-IBIG Fund will check and process your application to see if you are “pre-qualified.” You will receive an SMS message stating if you are pre-qualified or not.
- If you are pre-qualified, wait for a message or call from the DHSUD, Local Government Unit (LGU), or developer. They will provide further instructions regarding your housing loan application.
Another option is to apply for a subsidized loan directly. You can go straight to a DHSUD Regional Office, Pag-IBIG Fund Office, or developer to inquire if you qualify for a housing loan under 4PH.
After your Pag-IBIG Housing Loan application has been officially approved, you can start paying for your monthly amortization through the following payment methods:
- Salary deduction or Collecting Servicing Agreement between your employer and Pag-IBIG Fund;
- Virtual Pag-IBIG Mobile App or Virtual Pag-IBIG website;
- Auto-Debit Arrangement with banks;
- Cash payment at any Pag-IBIG Fund office;
- Submission of post-dated checks (PDCs); and
- Accredited collecting partners in the Philippines or abroad.
Image Credit: DHSUD / Facebook
Thanks to the Expanded 4PH Program, first-time homebuyers, including OFWs, can apply and buy the house of their dreams! For more information about the program and to see the latest requirements and steps, visit the official website of Pag-IBIG Fund.
Aside from the 4PH Program, OFWs can avail of a housing loan through other means. Check out this list of the best housing loan options available for OFWs and their families!