There are a lot of reasons why people work abroad. At the end of the day, it all boils down to providing a better and a more secure life and future for the family. To achieve this, you need to put your money in the right investments. This includes buying your first home.
If the Overseas Workers Welfare Administration has an OWWA loan to help all Overseas Filipino Workers in putting up their own business, PAG-IBIG also has a housing loan designed to help you in getting your own house.
Here are the things that you must know about PAG-IBIG housing loan.
PAG-IBIG Housing Loan for OFWs
The Home Development Mutual Fund is a program made by the government to provide affordable housing loan for OFWs. As a member of PAG-IBIG, you can borrow as much as PHP6 million depending on your needs and capacity to pay.
PAG-IBIG home loan can be obtained for the purpose of acquiring a house, improving an existing one or refinancing an existing house loan. The property that you can purchase can be in a residential area, a condominium unit or a house that needs to be constructed.
If you want to avail of a PAG-IBIG home loan, you should present the following:
- Employment Contract (with English translation if it is in foreign language)
- Original Employer’s Certificate of Income (if you don’t have an original copy, photocopy is acceptable as long as it is duly validated and certified by an HDMF information officer assigned in the country where you are working)
Home Loan Requirements
You need to have the following documents when applying for a home loan:
- Duly signed and completed PAG-IBIG Home Loan application form with an attached recent ID picture
- Membership Status Verification Slip (you must have remitted at least 24 months contribution or pay in lumps if you are a new member)
- Proof of Income
- Photocopy of one valid ID of your co-borrower
- Duly signed Authorization to Conduct Credit Background Investigation
- If you are in abroad, Special Power of Attorney notarized before the date of departure or duly signed, certified, and authenticated by the Philippine Embassy or Consulate in the country where you are working
- Health Statement Form and Full Medical Examination for borrower above 60 years old or lone amount of more than PHP 2 million
- Marriage contract, if married
- Certificate of No Marriage, if single
- Birth Certificate or proof of relationship if you have co-borrowers
Other than the documents mentioned above, you also need to prepare the following technical requirements:
- Certified true copy of the latest TCT/CCT by the Registry of Deeds
- Location Plan and Vicinity Map of the property
- Photocopy of Tax Declaration and the latest Real Estate Tax Receipts
Depending on your loan purpose, you also need to present the following requirements:
- Purchase of Lot / Residential Unit – Contract to Sell or similar agreement between the buyer and seller
- Construction of House / Home Improvement – Building plan and Specification and Bill of Materials signed by licensed architect or civil engineer
- Refinancing – Statement of Account on outstanding loan balance and indicating loan purpose, and any of the following: official receipt for the last 12 months, valid proof of payment for the last 12 months, or subsidiary ledger
The Loan Process
Here is the step-by-step procedure on how you can apply for a PAG-IBIG Home Loan:
1. Attend a Loan Counselling program with a PAG-IBIG Information Officer in the PAG-IBIG Office near you.
2. Fill up the application forms like the Housing Loan Application and the Preliminary Loan Counselling Questionnaire. You will also be asked to fill up a medical questionnaire if you are above 60 years old or you are applying for a loan amount of PHP2 million or above.
3. Submit the required documents and pay the non-refundable fee of P1,000
4. PAG-IBIG will review your loan application within 20 days. This period will also cover property valuation and credit investigation.
5. If approved, you will receive a Notice of Approval or Letter of Guaranty. You must give any of the documents to the property seller and pay the Capital Gains Tax at the BIR within 90 days. A Certificate of Authorizing Registration will be released upon payment of CGT.
6. Pay the Transfer Tax in the local government where the property is located.
7. Proceed to the Registry of Deeds to transfer the title. An updated tax declaration and Occupancy Permit will be given by the Assessor’s Office and Engineering Office. If you are using the funds for refinancing, present the Letter of Guaranty and Loan and Mortgage Agreement to the bank where the loan was initially coursed through before going to the Registry of Deeds for annotation on the title.
8. Submit the following documents to PAG-IBIG:
- Original TCT in the name of the borrower and with mortgage annotation on it
- Deed of Absolute Sale with stamp from RD
- New tax declaration in the name of the owner
- Updated Real Estate Tax receipts for land and improvement,
- Assignment of Loan Proceeds (will come from PAG-IBIG).
Congratulations! You now have your own home. Make sure to always pay your monthly amortization on time to avoid penalties.