OFWs’ Comprehensive Guide to Government Housing Loans

Overseas Filipino Workers (OFWs) are the heroes of modern times. Giving hope not only to their loved ones but uplifting the country’s economy as well. Enduring the yearning from being apart from their families to secure a better future for them. Some of the most common Filipino workers’ dreams are to pave a good future for their children through education and to own an affordable house and lot in the Philippines. To build a home with comfort and be at ease is a fulfilling reward after all the longing and missed moments to be with the people who truly matter.

Dreams are now within reach. Searching for the ideal property such as an affordable house and lot and acquiring one was made more trouble-free than ever. At present, buying a home is convenient and hassle-free because housing companies accommodate acquisitions through housing loans and other flexible payment schemes while offering quality and affordable homes such as a Lessandra home. Compared to acquiring the property in cash, there is no need to wait for years to have enough savings to own a house. In getting a housing loan, there is an option to pay it in installment basis at a low-interest rate and long repayment term. Most importantly, the borrower has an option to avail the maximum loanable amount up to millions. Thus, giving them financial freedom to choose from a great deal of housing options than paying upfront. Unlike in the past, applying for these loans was also made faster and easier. Here are some of the housing loans that an OFW can avail of here in the Philippines.

1. Pag-IBIG Housing Loan

OFWs are given the opportunity to own affordable homes in the Philippines through Home Development Mutual Fund (HDMF) or also known as Pag-IBIG. Pag-IBIG housing loans for OFWs are tailored to the needs of our modern-day heroes. It allows borrowing of up to Php 6,000,000.00 with their lowest interest rates and longest repayment term, depending on the borrower’s need and capacity to pay. The eligibility criteria for Pag-IBIG housing loans are posted on their website.

For Pag-IBIG housing loan applications, the applicants need to comply with the following documents:

1. 2 copies of filled out Housing Loan Application with recent ID photo of borrower/co-borrower (if applicable)

2. Any of the following Proof of Income (applicable to Overseas Filipino Workers):

a. Employment Contract

• Employment Contract between employee and employer; or

• POEA Standard Contract

b. Certificate of Employment and Compensation (CEC)

• CEC written on the Employer/Company’s official letterhead; or

• CEC signed by the employer (for household staff and similarly situated employees) supported by a photocopy of the employer’s ID or passport

c. Income Tax Return filed with Host Country/Government (If documents are in foreign language/s, English translation is required).

3. Back-to-back photocopy of one (1) valid ID of Principal Borrower and Spouse, Co-Borrower, and Spouse, and owner of the title (for accommodation mortgage), if applicable.

4. Photocopy of the latest Transfer Certificate of Title (TCT). For Condominium Unit, present a photocopy of TCT of the land and Condominium Certificate of Title (CCT).

5. Photocopy of the Updated Tax Declaration for House and Lot and Updated Real Estate Tax Receipt.

6. Building Plans, Specification with Bill of Materials duly signed by the Licensed Civil Engineer or Architect

7. Vicinity Map/Sketch of the Property

8. Additional requirements, if applicable:

For OFW members, the following are additional required documents:

1. Special Power of Attorney (SPA) notarized prior to the date of departure. For OFW member abroad, a SPA notarized by a Philippine Consular Officer, or SPA notarized by a local notary (of the country where the member is working) but duly authenticated by the Philippine Consulate.

2. The Fund may also require ANY or a combination of the following documents:

• Payslip indicating income received and period covered

• Valid OWWA Membership Certificate

• Overseas Employment Certificate

• Passport with appropriate visa (Working Visa)

• Residence card/permit (permit to stay indicating work as the purpose)

• Bank remittance record

• Professional License issued by Host Country/Government
  NOTE: If documents are in foreign language/s, English translation is required.

For Accommodation Mortgage or a third person other than the principal borrower who pledges his own property to secure the loan, the following are mandatory:

Notarized SPA for Accommodation Mortgagor Insurance Coverage

1. Health Statement Form (Medical Questionnaire) for borrowers over 60 years old or for borrowers up to 60 years old, if the loan is over P2.0 M to P6.0 M

2. Health Statement Form (Medical Questionnaire) and copy of the result of a medical examination conducted prior to assignment overseas as required by the employment agency for OFW borrowers over 60 years old

Aside from the documents above, the borrower needs to present a few more prior to the release of the loan. They will be given a checklist of the follow-up requirements to be complied with. The loan proceeds shall be made available to the borrower once all requirements have been completed.

One advantage of the Pag-IBIG Housing loan is the convenience in paying the monthly amortization. The borrower can choose from any of the following modes of payment:

• Salary deduction through Employer Collection Servicing Agreement (CSA)

• Post-dated checks (PDC)

• Payment to an accredited Developer with CSA with the Fund

• Auto debit arrangement with banks

• Accredited collection partners for both local remittances (Asia United Bank, SM Bills Pay, Metrobank, LandBank, Bayad Center, ECPay, Globe GCash, UCPB, MLhuillier, CashPinas, and PayMaya) and overseas remittance (I-remit, Ventaja PayRemit, PNB, AUB, and CashPinas).

Another advantage of this option is the repayment term of up to 30 years, whereas other financial institutions offer a loan term of 10 years. Repayment amount is spread through a longer period, thus making the amortization for each month more affordable.

Read more of this and other relevant articles on thepinoyofw.com – a community site for OFWs which also tackles job openings, news, and updates. Another site worthy to check on this is ofwtayo.com. It also has articles about other loan services available aside from housing loans.

https://lessandra.com.ph/blog/2021/03/02/ofw-housing-loans