Working overseas is a challenge where one needs to comply with the host country’s land laws, rules, standards, and culture. Despite the difficulties, Overseas Filipino Workers (OFWs) took their chance abroad to provide a better future for their loved ones. One of the big dreams of OFWs for their families is to own a house and lot. Luckily, the Home Development Mutual Fund (HDMF) launched the Pag-IBIG Housing Loan to help Filipinos reach their dream. If you want to avail of this program, read on as we share our in-depth guide on how to apply for a Housing Loan in Pag-IBIG as an OFW.
Although OFWs earn better, investing their hard-earned money is essential to ensure their years of sacrifice and hard work won’t be wasted. By availing of the Pag-IBIG Housing Loan, OFWs can realize their dream of owning a house and lot. This program allows Pag-IBIG members to borrow money to purchase real estate property. It’s an affordable shelter financing with the lowest interest rates in the market and friendly terms. OFWs can also choose from various loan purposes, such as house construction or improvement. Therefore, OFWs who want to own a house will benefit from this program.
Contents
What is Pag-IBIG Housing Loan
The Pag-IBIG Housing Loan is an affordable shelter financing that allows OFW members to borrow up to P6,000,000. It offers the friendliest terms and low-interest rates in the market, making it possible for Filipinos to own their dream home. Under this program, a member can borrow a loan based on their salary and capacity to pay, usually fixed at 40% of the borrower’s disposable income. But to avail of the Pag-IBIG Housing Loan, the borrower should meet the qualifications and requirements.
Loan purpose
Here are the following loan purposes under the Pag-IBIG Housing Loan program:
- Purchase of residential lot or adjoining residential lots (plus cost of transfer; maximum 1,000 square meters)
- Purchase of residential house and lot, townhouse, or condominium unit inclusive of a parking slot (plus cost of transfer; old/brand new, property mortgaged with the Fund, adjoining houses/units)
- Construction of house
- Improvement of house
- Refinancing of an existing housing loan
- Combined Loan Purposes
Collaterals & Limitations
If applying for a Pag-IBIG Housing Loan, below are the collaterals and limitations to remember:
- Clean Title (TCT/OCT/CCT)
- The following collateral is not accepted:
- Rights
- Free Patent not covered under RA10023
- With disputes, claims in the court
- Less than 28 square meter lot area
- Less than 17 square meters of condominium floor area
- Properties with less than 1.5 meters of road right of way
- Land types classified other than residential use
- Residential buildings should comply with the National Building Code (PD958 or BP220)
Qualifications
If you’re planning to apply for a Pag-IBIG Housing Loan, check if you meet the following qualifications:
- Must be a Pag-IBIG member
- Active Pag-IBIG member with at least 24 months of savings
- Not over 65 years old during the loan application and not over 70 years old at the loan maturity date
- Must have a legal capacity to acquire and encumber real property
- No Pag-IBIG housing loan if canceled, repurchased, foreclosed, or voluntarily surrendered
- Update the payment if OFW has an existing Pag-IBIG Housing account or Short Term Loan (STL)
Requirements
If qualified to apply for a Housing Loan in Pag-IBIG, the OFW should comply with the following requirements:
From Borrower
- Housing Loan Application with latest ID photo of borrower/co-borrower (if applicable; two (2) copies, HQP-HLF- 068/HQP-HLF- 069)
- Proof of Income for OFWs
- One (1) valid ID (back-to-back photocopy) of the following (if applicable):
- Principal Borrower and Spouse
- Co-Borrower and Spouse
- Seller and Spouse
- Authorized Representative of the Developer and Attorney-in-fact
From Seller (and Borrower)
- Transfer Certificate of Title (TCT) (latest and Certified True Copy); If condominium unit, secure a TCT of the land and Condominium Certificate of Title (CCT) (Certified True Copy).
- Updated Tax Declaration (house and lot) and Updated Real Estate Tax Receipt (photocopy)
- Vicinity Map or Sketch Map going to the Property contingent on loan
Additional Requirements (based on Loan Purpose)
Note: For documents in a foreign language, provide English translation.
- Special Power of Attorney (SPA) notarized before the departure date. If the OFW member is abroad, notarize the SPA at the Philippine Consular Officer or the local notary of the host country. However, the Philippine Consulate should authenticate the document.
- Pag-IBIG may also request any of the following documents:
- Payslip stating the income received and period covered
- Valid OWWA Membership Certificate
- Overseas Employment Certificate
- Passport with applicable visa (Working Visa)
- Residence card/permit to stay (stating work as the purpose)
- Record of bank remittance
- Professional License issued by host government/country
- For Borrowers more than 60 years old (Insurance Coverage):
- Health Statement Form (Medical Questionnaire)
- Copy of medical examination result performed before being assigned abroad required by the employment agency
If purchasing a Lot/Residential Unit:
- Contract-to-sell or similar agreement between buyer and seller
- Updated Tax Declaration (H&L or lot, whichever applies)
- Update Real Estate Tax Receipt (photocopy)
- Vicinity Map/Sketch of the Property
For House Construction/Home Improvement:
- Updated Tax Declaration (H&L or lot, whichever applies)
- Update Real Estate Tax Receipt (photocopy)
- Vicinity Map/Sketch of the Property
- Building Plans – Specification with Bill of Materials duly signed by the Licensed Civil Engineer or Architect
If purchasing a Lot with House Construction:
- Updated Tax Declaration (H&L or lot, whichever applies)
- Update Real Estate Tax Receipt (photocopy)
- Vicinity Map/Sketch of the Property
- Building Plans – Specification with Bill of Materials duly signed by the Licensed Civil Engineer or Architect
For Refinancing:
- Updated Tax Declaration (H&L or lot, whichever applies)
- Update Real Estate Tax Receipt (photocopy)
- Vicinity Map/Sketch of the Property
- Latest Statement of Account on the Outstanding Loan Balance duly signed by the Manager/account officer with any of the following:
- Official receipt or any valid proof of payment for the past six (6) months
- Subsidiary Ledger
How to apply for a Housing Loan in Pag-IBIG for OFWs
Follow the steps below to apply for a Housing Loan in Pag-IBIG as an OFW:
- Complete the requirements for Pag-IBIG Housing Loan based on your loan purpose.
- Submit your Pag-IBIG Housing Loan application form and initial requirements via Virtual Pag-IBIG.
- Select the Loan Type and enter your Membership ID No (MID). Then, click Verify.
- Next, submit your application form and complete documentary requirements at the nearest Pag-IBIG Housing Business Center or Pag-IBIG Fund branch. (Click here for the directory of Pag-IBIG branches and housing business centers.)
- If complete, you’ll receive a notification to claim your Notice of Approval (NOA) and Letter of Guarantee (LOG).
- Complete the requirements indicated in your Notice of Approval (NOA) within 90 days.
- After submitting your post-approval requirements, you’ll receive a notification on how to claim your loan proceeds within ten (10 working days).
- Then, start paying your Pag-IBIG Housing Loan monthly amortization one (1) month after the release date.
Summary
True to its mandate, the Home Development Mutual Fund (HDMF) provides affordable shelter financing. Through the Pag-IBIG Housing Loan, OFWs can purchase a house and lot or build a dream home for their loved ones. This program enables many Filipinos to own a home, making their retirement days more comfortable. In addition, the program has one of the lowest interest rates and friendliest terms in the housing market. Thus, the Pag-IBIG Housing Loan helps OFWs to invest their money wisely.