What will be discussed
Am I qualified?
How much can I borrow?
What are the forms and documents that I need?
What happens after the loan is approved?
Many Filipinos working overseas dream of one day going home for good. Even before they leave the country for their first contract, they already have a plan in mind that is good for at least up to 5 years. Save money, buy a house for the family in the Philippines while sending the kids to college. If they already have a home, a car would follow. Then a good piece of farm land in the province to raise pigs and poultry, maybe plant mango trees. By then, the OFW would be ready to go home, watch his hacienda grow, pull up a rattan chair, smoke a cigar while a bottle of malt whiskey is on the balcony table and retire a self-made man. Whatta dream! The question remains, what are the steps that I need to do?
Am I qualified?
Let us say that you have already settled as an OFW in the country you are working in and all your routines, shelter and daily expenses are smoothly covered. What you need to know now is, are you qualified to apply for a home loan?
- You must be a member of the PagIbig Overseas Program (POP) for at least twenty-four (24) months, proven by your 24 monthly contributions during the time of loan application. This means you need to have 24 contributions, as of the period that you are applying to get a home loan.
- If you realize that you are lacking in the number of months, then you can pay the lump sum of the number of months that you missed. This way, you can meet the minimum requirement of 24 months and doing this will allow you to apply for the home loan.
- A member whose loan exceeds P500,000 shall be required to pay the upgraded membership contribution rates upon housing loan approval and onwards.
- A member who has contributed for at least 2 yrs and if your loan exceeds P500,000, you shall be required to pay the upgraded contribution rates upon the approval of your housing loan and throughout the duration of the loan.
- You must be not more than 65 years old at the time of your loan application and must be eligible for insurance (other insurance providers) and not be more than 70 years old at the time of the loan’s maturity. If you are considering getting a home loan, you must not wait very long and act soon.
- You must have the legal capacity to acquire and own real estate property. This means you must be cleared of any criminal liability or history.
- Like any lending institutions, you must pass all credit and employment background checks conducted by Pag-IBIG Fund.
- You must have no outstanding Pag-IBIG housing loan wither as principal borrower or co-borrower.
- No history of a previous Pag-IBIG loan that was foreclosed, cancelled, bought back because of default (unpaid balance), or was subjected to dacion en pago (surrendering the property back to lender due to non-payment) which also includes that the borrower stops paying for the loan to fully acquire the property and surrenders it.
- Has no outstanding multi-purpose loan from Pag-IBIG that is in arrears (months unpaid) at the time of application. If there is, you will be required to pay the months in arrears to update the account before you could proceed with applying for a loan.
For more information on requirements, you may visit Pag-IBIG fund’s website.
How much can I borrow?
A member can be approved up to P6,000,000 worth of loan, depending on your capacity to pay. This is to help you avoid being above your ability to pay against the amount that you were approved to borrow. Also, it is highly important to note that your account should be up-to-date, meaning no outstanding months to be paid and/or have at least 24 consecutive months contribution.
If you are more than 60 years old and are applying for a loan of over P2,000,000 you will be required to answer a medical questionnaire. A loan counseling officer is always ready to assist you when you walk in your Pag-IBIG Fund branch.
What are the forms and documents that I need?
It is important to know which form you need, and to fill it out properly. Again, the loan counseling officer would be able to help double-check if your forms are complete and are properly answered by you.
· Housing Loan Application Form (HLA)
· Certificate of Attendance Seminar – This cannot be downloaded because it is to be given after you complete the seminar.
· Preliminary Loan Counseling Questionnaire (PLCQ)
Personal Documents
· Latest Community Tax Certification (cedula)
· 1×1 picture of borrower and spouse (if married)
· Marriage Contract, if you are married
· Certificate of No Marriage (CENOMAR), if you are single
· Legal Separation, if separated
· Photocopy of valid IDs (e.g. TIN, SSS, Postal ID, Driver’s License, Passport, PRC, etc.)
If someone will be acting as your Attorney-in-Fact while you are still abroad, that person will need:
· Latest Community Tax Certification (cedula)
· Proof of Relationship from the Borrower (e.g. Marriage Contract, Birth Certificate)
· Photocopy of valid IDs (e.g. TIN, SSS, Postal ID, Driver’s License, Passport, PRC, etc.)
Property Documents
· Certified true copy of Transfer Certificate Title (TCT) of the property by the Registry of Deeds (latest title)
· Updated Tax Declaration
· Updated Real Estate Tax Receipt or Tax Clearance
· Location Plan and Vicinity Map of the property
Additional Requirements
· Notarized Special Power of Attorney (SPA) prior to date of departure or duly certified and authenticated by the Philippine Embassy or Consulate in the country where you work, if abroad. If SPA does not have the red ribbon of Consulate Office, the SPA must have a duly stamped notarial seal. If you acquired the SPA in the Philippines, it needs to be notarized.
· Photocopy of passport showing stamp of arrival and departure dates from the Philippines
Documents you need to show after the loan approval
· Loan Agreement/Loan and Mortgage Agreement
· Duly notarized Promissory Note
· Pag-IBIG Fund Receipt (PFR) representing payment of one-year insurance premium
What happens after the loan is approved?
· When you get back home, you or your Attorney-in-Fact will receive a Notice of Loan Approval (NOA) or Letter of Guarantee (LOG). This means you will need to notify Pag-IBIG that you are already home.
· Within 90 calendar days, you (or your AOF) will give the NOA or LOG to the property seller and pay the Capital Gains Tax at the BIR. You will be given a Certificate Authorizing Registration. Present the Deed of Absolute Sale (DOAS), Tax Declaration and Tax Receipt.
· Proceed to the Treasurer’s Office of the LGU concerned for the payment of Transfer tax.
· Proceed to the Registry of Deeds for the Transfer of Title and present the tax clearance, most recent tax declaration, mortgage contract and the BIR documentary stamps. The Assessor’s Office will give you a tax declaration and the Engineering Office will give you an occupancy permit.
If you are using the loan for a house refinancing, give the LOG and Loan and Mortgage Agreement (LMA) to the bank/financing institution, then go to the Registry of Deeds for the transfer of title and mortgage annotation on the land title.
Finally, go back to Pag-IBIG and submit the following documents with a government issued ID for your loan check to be released to you.
· Original Transfer Certificate of Title (TCT) in the name of the borrower with mortgage annotation on it
· Deed of Absolute Sale (DOAS) with original stamp from the Registry of Deeds
· New Tax Declaration in the name of the borrower
· Updated Real Estate Tax Receipt for Lot
· Updated Real Estate Tax Receipt for House (if applicable)
· Occupancy Permit from the Engineering office
· Assignment of Loan Proceeds (this document will be from Pag-IBIG)
The process may appear too long, but bear with it. If your lifetime dream of providing a decent home for your family is at stake, it will be worth the effort so that you could give them the home that should last them until your retiring years.
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Sources: megaworldatthefort.com | kwentongofw.com | pagibig.gov.ph