The Pinoy OFW

Pag-IBIG

5 Best Housing Loan Options for OFWs

Real estate is a favored personal investment among Overseas Filipino Workers (OFW). The belief that a real estate property is a substantial investment, in addition to the desire to have a house of their own before they retire – is a dream that most OFWs live for.

However, like all investments, there is the downside of requiring vast amounts of money when making a house and land purchase. Naturally, the option to get a housing loan, either from government agencies or banks, is available to OFWs.

housing-loan-ofw

Photo by Brandon Griggs from Unsplash

1. SSS Direct Housing Loan

Eligible borrowers

The Social Security System (SSS) housing loan is available to all SSS members who satisfy the following conditions:

  • Aged under 60 years old at the time of application,
  • Have at least 36 months contribution and 24 months of straight contributions,
  • Have not availed of any SSS housing loan benefits before,
  • Have not received final SSS benefits,
  • Is a certified Overseas Filipino Worker (OFW)
  • Is under a contract from the Philippine Overseas Employment Authority (POEA),
  • Is residing abroad and can present an authentication from the embassy in the country of residence,
  • Filipino workers who are on immigrant status or are already a citizen of a respective country, and
  • Filipino residents who have worked overseas for at least ten years.

For contract workers with pending renewal and abroad deployment, the loan will be released once the renewal and deployment for overseas employment.

Eligible loan purposes

The loan can be used for:

  • Construction of a house at a lot owned by the applicant,
  • Buying a land in which a house will be built, and
  • Purchasing an existing residence- either a house and lot, a townhouse or a condominium unit.

Loanable Amount

The SSS housing loans come in two options:

  • A socialized housing loan worth Php300,000, and
  • A low-cost housing loan that ranges from Php500,000 to Php1,000,000.

Loan Term

The SSS housing loan is available on various terms, from 5 to 30 years.

Interest rate

The interest rate can change depending on the loan amount and can range from 9% to 14% per annum.

Documentary requirements

These documents are required before the loan application can be processed:

  • Duly filled and signed form of mortgagor with 1 x 1 picture of the applicant (and the spouse, if married),
  • Loan Eligibility Certification,
  • Membership Certification from your respective worker’s group,
  • Certification of Employment,
  • Two months latest payslip with employer’s certification,
  • POEA/OWWA/DOLE or any SSS-related foreign officer Certification for OFWs, and
  • Most recent Income Tax Return (ITR).

2. PAG-IBIG Overseas Program (POP)

Eligible borrowers

Under the Pag-IBIG Overseas Program (POP), an OFW may avail of a loan provided that he/she satisfies the following conditions detailed on the Consolidated Guidelines of the Pag-IBIG Housing Loan Program:

  • Applicant is either a Filipino overseas contract worker, a Filipino immigrant, or a naturalized citizen,
  • Not over 65 at the time of loan application and not more than 70 years old at loan maturity,
  • Able to acquire real property on a legal capacity,
  • Has satisfied the PAG-IBIG Fund background/credit and employment/business checks,
  • No Outstanding Pag-IBIG housing loan, PAG-IBIG multi-purpose loan, or calamity loan, either as a principal borrower or co-borrower, and
  • Does not have any Pag-IBIG housing account that was foreclosed, canceled, bought back due to default, or subjected to Dacion en Pago (repossession).

Eligible loan purposes

The loan can be used for:

  • Purchase (plus cost of transfer) of a fully developed residential lot or adjacent residential lots as long as it does not exceed 1,000 sq.m., 
  • Purchase (plus price of transfer) of an old or new property – either a house and lot or a townhouse or condominium, with parking slot,
  • For the construction or completion of a residential unit on a lot owned by the borrower, or a relative;
  • Improvement on the borrower’s house, i.e., any alteration in an existing unit that will enhance its durability and material value;
  • Refinancing of an existing housing loan with any institution acceptable to the Fund, under the condition that the account is updated and at least one (1) year old upon application, as verified by borrower’s official receipts or a Statement of Account (SOA) (SOA) issued by the financing institution signed by the Manager or Account Officer.
  • Combination of loan purposes (plus price of transfer) for:
    • Purchase of a fully developed lot not exceeding 1,000 square meters and construction of a residential unit thereon;
    • Purchase of a residential unit, whether old or new, with home improvement;
    • Refinancing of an existing mortgage with home improvement;
    • Refinancing of an existing mortgage, specifically a lot loan, with construction of a residential unit thereon.
    • Purchase of residential unit and transfer of title in favor of the retail borrower;
    • Purchase of a residential unit with home improvement, and transfer of title in favor of the retail borrower;
    • Purchase of residential lot and transfer of title in favor of the retail borrower;
    • Purchase of residential lot with house construction and transfer of title in favor of the retail borrower.

Loanable Amount

PAG-IBIG members working overseas and paying contributions under the voluntary PAG-IBIG Overseas Program (POP) may make up as much as P 2,000,000.00 in housing loans.

Loan Term

The maximum payment period for the loan is thirty (30) years.

Interest rate

The interest rate is calculated based on the customer-selected repricing period under conditions of the Full Risk-Based Pricing Framework.

Documentary requirements

Borrowers who wish to apply for the POP housing loan need to submit the following:

  • Housing Loan Application with recent ID photo of borrower/co-borrower (if applicable)
  • Proof of Income for Overseas Filipino Workers (OFW)
  • One (1) valid ID (Photocopy, back-to-back) of Principal Borrower and Spouse, Co-Borrower and Spouse, Seller and Spouse, and
  • Developer’s Authorized Representative and Attorney-In-Fact, (if applicable)
  • Special Power of Attorney (SPA) for member applicants who wish to send a representative,
  • Duly certified by the Philippine embassy or consulate in the country of their workplace,

3. Land Bank of the Philippines Bahay Para sa Bagong Bayani Program

Eligible borrowers

  • Filipino citizens
  • OFWs holding a live contract from a reputable company
  • 21 years old but not more than 65 years of age upon loan maturity
  • Clear of adverse credit finding with other creditors

Eligible loan purposes

The LBP Bahay Para sa Bagong Bayani Program can be used for purchase of:

  • Residential Lot,
  • House and Lot,
  • Residential Units/Condominium/Townhouse,
  • Construction/improvement or renovation of existing residential unit owned by OFW,
  • Refinancing of an existing housing loan of the OFW on “CURRENT” status, or
  • Assumption by an OFW an existing housing loan by another borrower either with LANDBANK or another creditor.

Loanable Amount

Lowest bracket within the paying capacity of the OFW or loan value of collateral with a loan value of 80% if:

  • Financing will be for the principal residence or dwelling of the borrower OFW; and
  • The title should be under the name of the OFW.

Loan Term

  • 20 years: for OFW with co-borrower, or
  • 15 years: for OFW without co-borrower.

Interest rate

  • Variable: Based on the posted rates at the time of availing,
  • Subject to yearly repricing,
  • Fixed: Based on posted prices at the time of availing, or
  • For Socialized Housing: 1% below the posted EHL rates at the time of availing subject to annual repricing.

Documentary requirements

  • For Credit Analysis:
    • Duly accomplished loan application form with 1″ X 1″ photo
    • Copy of employment contract
  • For Appraisal:
    • Photocopy of TCT/CCT
    • Photocopy of Tax Declaration (land improvements)
    • Latest Real Estate Tax Receipts
    • Certified by a Geodetic Engineer
    • Lot Plan
    • Location and vicinity map
  • For Construction and Renovation:
    • Photocopy of TCT/CCT

4. BPI Housing Loan

Eligible borrowers

Anybody of legal age but not more than 65 years old upon loan maturity if they are:

  • Filipino
  • A foreigner married to a Filipino citizen (subject to specific documentary requirements)
  • Foreigner with issued immigrant/resident visa (subject to particular documentary requirements) but solely for the acquisition of a condominium unit only

Eligible loan purposes

The BPI Housing loan can be used for:

  • Purchase a vacant lot;
  • Purchase a house and lot;
  • Construct a house;
  • Renovate your existing home;
  • Refinance loans with other financial institutions

Loanable Amount

The loanable amount under the BPI Housing loan can change and be:

  • Minimum of P400,000, 
  • Maximum of 70% of the appraised value of house and lot,
  • Maximum of 60% of the estimated value of the vacant lot or residential condominium, or
  • Up to 80% of the assessed value of house & lot if it’s under P5M (if the applicant is employed, and it is meant for owner occupancy).

Loan Term

The loan can either be:

  • Maximum of 25 years for house and lot, or
  • For a vacant lot, a maximum of 10 years, residential condominium, business loan, refinancing, or multi-purpose loans

Interest rate:

The interest rate can vary, depending on the loan purpose and the loan term – from 6.25% to 12% for home acquisition and home construction and renovation. For loans to be used for property equity, the interest rate can range from 7.25% to 8.25%.

Documentary requirements

  • Filled out Application Form,
  • Two valid IDs,
  • If married, signature of both spouses on the application form,
  • If with co-borrower or co-mortgagor, duly accomplished application form filled separately,
  • Job contract or Certificate of Employment (COE), authenticated by Philippine Consulate,
  • For seaman, Crew Contract and Exit Pass as validated by POEA,
  • Proof of monthly remittances,
  • Notarized or authenticated Special Power of Attorney (BPI FSB Format),
  • Clear copy of Owner’s Duplicate Copy of TCT/CCT,
  • Lot Plan with Location/Vicinity Map certified by licensed Geodetic Engineer,
  • Photocopy of Tax declaration / Tax receipts / Tax clearance, and
  • Endorsement Letter/computation sheet / Contract to Sell from the developer stating the contract price (for accredited developer/project)

5. United Coconut Planters Bank (UCPB) Home Loan

Eligible borrowers

For the UCPB Home Loan, you will be an eligible borrower if:

  • You have been working for at least the last 12 months with a minimum gross monthly income of P30,000.00 or higher, or
  • You have been in business for the previous three years.

Eligible loan purposes

The UCPB Home Loan can be used to:

  • Buy a residential lot, house and lot, condominium, or townhouse,
  • Renovate or build a house on an already-owned lot,
  • Refinance an existing mortgage from another bank, or
  • Multi-purpose loan (collateral can either be your primary residence, secondary home, or vacant lot).

Loanable Amount

The loanable amount ranges from a minimum of P500,000.00 to up to 70% of the appraised value for house and lot, townhouses and condominium units, 60% of the estimated value for vacant lot, or 80% of the contract price for accredited developers.

Loan Term

  • The maximum loan term is 20 years for construction and acquisition of house and lot, townhouses and condominium units.
  • The maximum loan term is ten years for refinancing, multi-purpose loans and acquisition of vacant lots.

Documentary requirements

Applying for the UCPB Home Loan, the following documents are necessary:

  • Duly accomplished Housing Loan Application Form
  • 2 Valid Government-issued ID’s
  • Certificate of Employment (COE) duly authenticated by Philippine Consulate
  • Crew Contract & Exit Pass validated by POEA (for Seamen)
  • Payslips for the last three months
  • Notarized or authenticated Special Power of Attorney (UCPB prescribed format)

So, if you are an OFW looking to fulfill that dream of having your own house, but are having problems coughing up a huge amount of money, then this might just be the chance that you are waiting for – an opportunity to buy or build your dream house.

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