Overseas Filipino Workers (OFW) work hard in foreign lands – hoping to provide more comfortable lives for themselves and their families. OFW’s are one of the largest groups of migrant workers all over the world. There are estimated 2.3 million OFWs all around the globe. These are brave individuals who take on the sea’s challenges to provide the best for their families. One of the most sought-after Filipino dreams is to finally provide a safe and sturdy roof above the heads of their loved ones. PAG-IBIG made this dream a little less far-fetched for OFWs through their Home Development Mutual Fund (HDMF).
But, How can an OFW apply for PAG-IBIG housing loan?
It would seem a little bit intimidating to go through the entire process. But worry not, we provided a detailed step-by-step procedure for you to follow in acquiring this Pag-IBIG loan. And hopefully, after reading, you will have a grasp of most of (if not everything) that you need to know about applying for a loan for this precious lifetime investment of yours.
Step 1: Find a property that you can set your mind to getting, and a person in the Philippines that you trust enough with the loan process.
Yes, it might seem so simple. But finding properties can sometimes be a little bit tricky. Are you sure you are buying real estate from a property seller that you can confidently say you can trust? If you are still hesitant or still looking, consider Bilkenn Corporation. It is one of the fast-growing real estate developers in the Philippines and has kept a good track record when it comes to approval of PAG-IBIG housing loans. Bilkenn offers quality house and lot units for sale in Cavite.
After you have your mindset on a certain property already, and assuming that you are not going back to the country anytime soon to process requirements – make sure to have at least one person (preferably your spouse or any immediate family member) that can help you with the legwork and securing proper receipts and documents. When you are out of the country, you must constantly communicate and work with someone along the process.
Step 2: Identify if you are eligible and how much you are capable of loaning.
How much is Pag Ibig housing loan of OFW?
With this HDMF program, an OFW may loan a maximum of 6 Million pesos. Your loan will depend according to how much you are earning and willing to pay which is normally 40% of your disposable income. But first, you have to know if you are eligible.
To pass for the loan’s eligibility, you must:
- Have an active Pag-IBIG membership and have at least contributed for at least 24 months. If you have not contributed for 24 months in total, you may pay in bulk until it reaches the 24th month.
- Not be 65 years old or more during the time of application and must not be 70 years old or older during loan maturity.
- Pass the credit background check.
- Have no pending loans from Pag-IBIG under your name. If you still have unfinished businesses, you will need to accomplish your remaining obligations so you can have access to the agreement.
Step 3: Prepare and complete the necessary requirements for the loan.
In this part, you need to make sure you are not missing any requirement so you/your trusted family member will not be wasting time going to and from PAG-IBIG offices. That is why we made a mini-checklist for you to deal with this is a crucial part of going through the nitty-gritties dealing with a government agency. Note that if any of the documents are written in a foreign language, copies must be translated into English.
What are the requirements for a PAG-IBIG housing loan for OFWs?
- Housing Loan Application Forms with attached recent ID photo – you may access the PAG-IBIG Housing Loan Application form here, and Application form For Co-borrowers here.
- Proof Of Income – this could be in the form of Certificate of Employment and Compensation (CEC); Employment Contract from the original employer; and/or Income Tax Return issued from the country you are working in.
- Proof of Relationship and Birth Certificate – for borrowers with co-borrowers
- Certificate of Marriage or Certificate of No Marriage (CENOMAR)
- Photocopy of one valid ID – make sure that you make back-to-back copies of one ID of the following: Principal Borrower and Spouse; Co-Borrower and Spouse and; Owner of the title
- Transfer Certificate of Latest Title (TCT) – when applying for condominium units, prepare the TCT of the land and a photocopy of the Condominium Certificate of Title (CCT).
- A photocopy of Updated Tax Declaration and a photocopy of an updated Real Estate Tax Receipt – this applies when applying for House and Lot
- Loan Mortgage Documents – in the form of: Loan and Mortgage Agreement registered with Registry of Deeds and with legitimate RD Stamp; Notarized Promissory Note and; Disclosure Statement on the Loan transaction
- Building Plans – that includes the bill of materials, electrical and sanitary permits, and other details specified and signed by the Licensed Engineer or Architect
- Vicinity Map/Sketch of the Property
After you acquired/completed these necessary documents, make sure to keep them neatly in one place – preferably a folder, a clear book, or an envelope to avoid losing them.
Step 4: Attend the loan counseling.
Loan Counseling is a required step done in the designated PAG-IBIG office to discuss realistic measures and doable expectations for your loan. Make sure to also come on time and listen carefully so you would not miss anything important. Remember that this is a high moment in your family’s future so make sure to take this counseling seriously.
Step 5: Submit the documents, pay fees, and be patient!
Once you have done steps 1-4, you (or your family member) will be meeting with people from PAG-IBIG to submit documents and pay the fees. Bureaucracy takes time and patience to follow, so you must take time to really be patient. The process will take place in this order:
1. When you submit the requirements, you will be paying a non-refundable fee of 1000PHP.
2. wait for PAG-IBIG HDMF to review your application for more or less 20 days.
3. Once approved, you will be receiving a Notice Of Approval or Letter of Guarantee which you will submit to the seller of the property.
4. Within 90 days, you will be proceeding to the Bureau of Internal Revenue (BIR) to pay Capital Gains Tax. After this, you must wait for the release of your Certificate of Authorizing Registration.
5. Pay for Transfer Tax.
6. Transfer the Property Title to the Registry of Deeds.
7. Obtain either an Updated Tax Declaration from the Assessor’s Office or an Occupancy Permit from the Engineer’s Office.
8. Submit the following to PAG-IBIG:
- Original TCT in the name of the borrower with the mortgage annotation
- Updated Real Estate Tax Receipts of the property
- Deed of Absolute Sale with the stamp from Registry of Deeds
- New Tax Declaration in the name of the owner
- Occupancy Permit and Assignment of Loan Proceeds
(note: if you are refinancing for a property, make sure to visit your bank to submit your Letter of Guarantee and Loan Mortgage Agreement before obtaining Annotation on the Title in the Registry of Deeds)
Ready to do the 5 steps listed above? Good for you! You are now making an active decision to invest for you and your family’s future. Your hard work is now slowly materializing into a literal physical foundation where you can come home to and spend time with the people that matter to you the most. While the whole process may seem a bit overwhelming at first, you are sure to surpass it all with every little step that adds up. After all, you are a brave and hardworking human being who braved unfamiliar territories to ensure a better life for yourself and your loved ones.
Still not sure how to begin with Step 1/Finding a Property that you can trust? We got you covered!
We present 6 steps in finding and owning your dream house:
- Inquiry. Contact our Sales Team so that we can assist you in finding the best property for your goal and budget. You can contact us via Facebook (Bilkenn Corporation), Email (firstname.lastname@example.org), or through this website (www.bilkenn.com).
- Tripping. Schedule the time and date with our Sales Team or through accomplishing the appointment form, to visit our project site in Cavite. Our Sales Team will tour you around our house model units, as well as answer all your inquiries. We can provide a Tripping Vehicle to serve as your transportation. If you are currently abroad, then representatives from your family can do the tripping for you.
You can also tour virtually! You can go to our virtual tour pages to walk around all our model units using any device!
- Fees Payment. You can pay the Reservation Fee of PHP 20,000 to any Bilkenn Staff or deposit it to our bank account (Bank: Asia United Bank, Account Number: 538-01-0000768, Account Name: Bilkenn Corporation). Request for a Provisional Receipt. This amount is Non-Refundable.
- Reservation Agreement. Spend a couple of minutes to review the Reservation Agreement before signing. Take note of the date that you signed the Reservation Agreement.
- Documentation. Clients will have a set amount of days to complete the requirements. Please request a Requirements Check List from any Bilkenn staff. It should be noted that failure to submit any of the requirements may terminate the contract and reservation.
Our Bilkenn Loan Processing Department will assist you! However, the final assessment that leads to the approval or denial of the loan is up to the financial institutions.