Buying A Property While You’re Abroad

 

Currently, buying a home is simple and comfortable since housing firms offer high-quality, reasonably priced homes and accommodate purchases through housing loans and other flexible payment plans. It is possible to repay a house loan in installments with a low interest rate and a lengthy repayment period. The borrower has the possibility to obtain the maximum loanable amount up to millions, which is crucial. Giving individuals the financial flexibility to choose from a variety of home options rather than paying in advance. These loans might also be applied for more quickly and easily than in the past. Here are a few housing loans that an overseas Filipino worker may be eligible for.

Mins to Read: 17  minutes

Age: For all

 

The heroes of the modern era are overseas Filipino workers (OFWs). giving hope to their loved ones while boosting the economy of the nation. putting up with the longing that comes with being absent from their family in order to ensure a brighter future for them. To provide a bright future for their children through education and to possess an affordable home and lot in the Philippines are two of the most typical goals of Filipino workers. After all the longing and wasted opportunities to be with the ones who actually matter, building a house where you can relax and feel comfortable is a satisfying reward.

 

 

 

1. Housing Loan from Pag-IBIG

Through the Home Development Mutual Fund (HDMF), popularly known as Pag-IBIG, OFWs are given the chance to purchase reasonably priced homes in the Philippines. Our modern-day heroes’ requirements are catered to through Pag-IBIG home loans for OFWs. Depending on the borrower’s need and ability to pay, it permits borrowing up to Php 6,000,000.00 with the lowest interest rates and longest repayment terms. Pag-website IBIG’s lists the requirements for receiving housing loans there.

 

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):
3. Employment Contract

Employment Contract between employee and employer; or

 

POEA Standard Contract

1. 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
2. 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
• 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
• 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
• In addition, 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.

 

 

2. LAND BANK’s Bahay para sa Bagong Bayani (3B)

With lenient and flexible criteria, this program assists OFWs in buying, building, or renovating their own homes.

Filipino citizens

OFWs holding a live contract from a reputable company

21 years old but not more than 65 years of age upon loan maturity

Clear of adverse credit finding with other creditors

 

An advantage of this loan is that they accommodate and accept more types of loan purpose as follows:

• Purchase of Residential Lot
• House and Lot Acquisition
• Purchase of Residential Units/Condominium/Townhouse
• Construction/improvement or renovation of an existing residential unit owned by OFW
• Refinancing of an existing housing loan of the OFW on “CURRENT” status
• Assumption by an OFW an existing housing loan by another borrower either with Land Bank or another creditor

 

The loan amount can be obtained based on the OFW’s lowest paying capacity or the loan value of collateral, with a loan value of 80% as long as the financing is for the OFW borrower’s primary property or dwelling and the title is in their name.

 

The collateral needs to be:

• primary where the Object of Financing or separate prime property if warranted
• Others that may be accepted in addition to the object of financing such as Deposit with Hold-out.
• The loan term is 20 years for OFW with co-borrower, and 15 years for OFW without co-borrower.

 

The loan applicant is also required to present the following documentary requirements:

For Credit Analysis:

• Duly accomplished loan application form with 1″ X 1″ photo
• Copy of employment contract
• For Appraisal:
• Photocopy of TCT/CCT
• Photocopy of Tax Declaration (land improvements)
• Latest Real Estate Tax Receipts
• Certified by a Geodetic Engineer
• Lot Plan
• Location and vicinity map
• For Construction and Renovation:
• Photocopy of TCT/CCT

 

For loan applications, Land Bank has minimal documentary requirements. Because it takes less time and effort to complete and submit the requirements, this is more convenient for the loan application.

 

Visit ofwmoney.org to read the detailed steps for obtaining a Housing Loan for OFWs from Land Bank as well as other financial management manuals. Efrennolasco.com also offers a thorough guide to this loan option as well as its other available options.

 

3. SSS Direct Housing Loan Facility for OFWs

 

For OFWs, the Social Security Service (SSS) provides a housing loan to help with the government’s shelter program. This intends to offer shared and inexpensive housing to contract Filipino workers abroad. The following requirements must be satisfied in order to qualify as a member:

 

A certified Overseas Filipino Worker;

A voluntary OFW member of SSS;

• Have at least 36 months contribution and 24 continuous contributions in the period prior to application
• Be not more than 60 years old at the time of application and must be insurable. Member’s age 60 years at the time of application will have a maximum loan term of 5 years
• A member who has not been previously granted an SSS housing loan
• A member who has not been granted final SSS benefits
• Borrower and spouse is updated in the payment of their other SSS loan(s), if any

 

The spouse of an existing borrower should be aware that if the existing borrower’s loan was taken out before the date of marriage and it is not past due, the spouse may still be eligible for an SSS housing loan.

 

Construction of a new home or dwelling unit on an applicant-owned lot that is free of liens or encumbrances, the purchase of a lot for the construction of a new home or dwelling unit, and the purchase of an existing residential unit—which may be a house and lot, a condominium unit, or a townhouse—are all allowable uses for this loan.

 

The member may submit the application to the Housing and Business Loans Department at the SSS office in Quezon City or to the closest SSS cluster branch.

 

Original copies of the following should be submitted upon the filing of application:

• Mortgagor’s Application for Housing Loan with 1” x 1” ID pictures of Principal Applicant and Spouse
• Certificate of Loan Eligibility (CLE) – (P100 Service Fee)
• Certification from POEA/DOLE/OWWA/ SSS Foreign Representative Office or Philippine Embassy/Consular Office
• Deed of Sale or Contract to Sell with the statement of latest balance for purchase of lot or house and lot
• Appraisal Report from Home Guaranty Corporation accredited appraisal companies
• Certificate of Acceptance and Occupancy duly signed by the borrower if the house is 100% complete at the time of loan filing
• Duly notarized Special Power of Attorney (if the filing is through a representative)

 

Original and Photocopy of:

• Latest Contract of Employment and latest Employer’s Certification duly authenticated by Phil. Consulate
• Owner’s copy of the TCT/OCT/CCT
• A certified true copy of TCT/OCT/CCT issued by the Register of Deeds
• Latest Property Tax Declaration and Realty Tax Receipt

 

Other documents:

• Lot plan with vicinity map duly signed and sealed by Registered Surveyor or Geodetic Engineer (Blue Print)
• Building plans/specifications/picture of the house (Blue Print)
• A set of twelve (12) postdated checks covering twelve (12) monthly installments and shall be repeated every twelve (12) months thereafter until the loan is fully paid
• Tax Mapping/Subdivision Plan
• Affidavit of Undertaking to continue paying monthly SSS premium contributions for the duration of housing loan

 

For SSS Direct Housing Loan, note that:

• You have to present the original copy and submit one (1) photocopy of required documents for authentication purposes
• The applicant and spouse must be up-to-date in the payment of all existing loan accounts with SSS subject to verification by the SSS
• The SSS reserves the right to require additional documents if deemed necessary
• The application fee is ½ of 1% of the loan amount or P500, whichever is higher, but not to exceed P3, 000.00 to be deducted from the first loan release.
• There is an inspection Fee of P500 for both within and outside Metro Manila

 

This loan has the benefit of making payback easier because it takes payments through recognized collection banks, partnerships for remittances, and online payments through Bancnet. There is no need to stand in lengthy lines, it is quick, and it is hassle-free. Another is that they have set interest rates that range from 8% to 11% per year depending on the loan size, which is much cheaper than what some banks charge.

 

Moneygment.ph is a website where you may learn more about SSS house loans for OFWs.

 

In general, Pag-IBIG, Landbank, and SSS home loans for OFWs significantly improve the lives of Filipinos both domestically and overseas. They provide longer payback terms and have affordable interest rates. Additionally, it is ideal for those looking to purchase a home or lot, build a house, or accomplish another significant life milestone.

 

 

When someone works to attain their dreams, they do come true. It can be challenging and daunting to make wise selections. But keep in mind that initiative and resourcefulness are really helpful. To find the ideal opportunity, always conduct study. Ask questions; the best approach to get the greatest deal for you is to be aware of all the nuances. You can check out a lot of affordable homes and lots for sale, and there are many ways to buy your ideal house.

 

Choose the option that best fits your needs and budget. Get that ideal house.

 

 

3B; Landbank Housing Loan

Bahay para sa Bagong Bayani (3B)

A special lending program designed for Overseas Filipino Workers (OFWs). LANDBANK’s Bahay para sa Bagong Bayani program allows OFWs to acquire, build or renovate their own homes at relaxed and flexible terms.

 

Eligible Borrowers

• Filipino citizens
• OFWs holding a live contract from a reputable company
• 21 years old but not more than 65 years of age upon loan maturity
• Clear of adverse credit finding with other creditors
• Eligible Loan Purpose

 

Purchase of:

• Residential Lot
• House and Lot
• Residential Units/Condominium/Townhouse
• Construction/improvement or renovation of existing residential unit owned by OFW
• Refinancing of an existing housing loan of the OFW on “CURRENT” status
• Assumption by an OFW an existing housing loan by another borrower either with LANDBANK or another creditor
• Loan Amount

 

Lowest of the paying capacity of the OFW or loan value of collateral with loan value of 80% provided that:

• Financing will be for the principal residence or dwelling of the borrower OFW; and
• The title should be under the name of the OFW

 

Tenor

• 20 years: for OFW with co-borrower
• 15 years : for OFW without co-borrower

 

Collateral

• Primary, the Object of Financing or separate prime property if warranted
• Others that may be accepted in addition to the object of financing:
• Deposit with Hold-out
• Interest Rate

 

Variable : Based on the posted rates at the time of availment

Subject to yearly repricing1

 

Fixed: Based on posted rates at the time of availment2

• 2-3 years
• 4-5 years
• 6-7 years
• 8-10 years
• 11-15 years
• 16-20 years

 

For Socialized Housing: 1% below the posted EHL rates at the time of availment subject to annual repricing3

Note:

1 , 2 Applicable to EHL, END-BUYER’S TIE-UP and 3B

 

 

DOCUMENTARY REQUIREMENTS

 

For Credit Analysis:

• Duly accomplished loan application form with 1″ X 1″ photo
• Copy of employment contract

 

For Appraisal:

• Photocopy of TCT/CCT
• Photocopy of Tax Declaration (land improvements)
• Latest Real Estate Tax Receipts
• Certified by a Geodetic Engineer
• Lot Plan
• Location and vicinity map
• For Construction and Renovation:
• Photocopy of TCT/CCT
• Direct Housing Loan; SSS

 

Direct Housing Loan Facility for OFWs

 

The Government’s shelter program, which aims to offer socialized and affordable housing to overseas Filipino contract workers, is supported by the Direct Housing Loan Facility for Overseas Filipino Workers (OFW).

 

 

An OFW is a member of the private sector who:

 

1. presently deployed under a contract handled by the POEA or authenticated by an overseas embassy
2. When it comes to employment contracts that are pending renewal or deployment, however, the loan must be released after those things have happened.
3. A Filipino native who was born in the Philippines but is now a resident or citizen of another country and wants to purchase a home for his family who is still in the nation
4. A long-term overseas Filipino resident who wants to take advantage of housing packages for their extended family, for themselves, when they retire, or when they visit the Philippines

 

Eligible Borrowers

OFW member is qualified to borrow if he meets the following eligibility requirements:

 

1. Member is a certified Overseas Filipino Worker;
2. Member is a voluntary OFW member of SSS;
3. Member has at least 36 months contribution and 24 continuous contributions in the period prior to application
4. Members are not more than 60 years old at the time of application and must be insurable. Members age 60 years at time of application will have a maximum loan term of 5 years
5. Member was not previously granted an SSS housing loan
6. Member has not been granted final SSS benefits
7. Borrower and spouse is updated in the payment of their other SSS loan(s), if any

 

If the existing borrower’s loan was taken out before the date of marriage and it is not in default, the spouses of the existing borrower may still be eligible for an SSS housing loan.

 

 

Loan Purposes

1. The allowable purposes for a loan are as follows:
2. Construction of a new house or dwelling unit on a lot owned by the applicant free from lien/encumbrances;
3. Purchase of a lot and construction thereon of a new house or dwelling unit; and
4. Purchase of an existing residential unit which may be a house and lot, a condominium unit or a townhouse.

 

Note:

The property subject of the loan must be occupied by the owner-borrower or his/her immediate family member upon purchase of the unit.

 

How to Apply

The member may file the application at the nearest SSS cluster branch or at the Housing and Business Loans Department, 5/F, SSS Bldg., East Avenue, Diliman, Quezon City.

 

The following documents should be submitted upon filing of application:

 

Original copy of the following:

 

1. Mortgagor’s Application for Housing Loan with 1” x 1” ID pictures of Principal Applicant and Spouse
2. Certificate of Loan Eligibility (CLE) – (P100 Service Fee)
3. Certification from POEA/DOLE/OWWA/ SSS Foreign Representative Office or Philippine Embassy/Consular Office
4. Deed of Sale or Contract to Sell with statement of latest balance for purchase of lot or house and lot
5. Appraisal Report from Home Guaranty Corporation accredited appraisal companies
6. Certificate of Acceptance and Occupancy duly signed by the borrower if house is 100% complete at the time of loan filing
7. Duly notarized Special Power of Attorney (if filing is through a representative)

 

Original and Photocopy of the following:

 

1. Latest Contract of Employment and latest Employer’s Certification duly authenticated by Phil. Consulate
2. Owner’s copy of the TCT/OCT/CCT
3. Certified true copy of TCT/OCT/CCT issued by the Register of Deeds
4. Latest Property Tax Declaration and Realty Tax Receipt

 

Other documents:

 

1. Lot plan with vicinity map duly signed and sealed by Registered Surveyor or Geodetic Engineer (Blue Print)
2. Building plans/specifications/picture of the house (Blue Print)
3. A set of twelve (12) postdated checks covering twelve (12) monthly installments and shall be repeated every twelve (12) months thereafter until the loan is fully paid
4. Tax Mapping/Subdivision Plan
5. Affidavit of Undertaking to continue paying monthly SSS premium contributions for the duration of housing loan

 

Note:

• Present original and submit one (1) photocopy of required documents for authentication purposes
• Applicant and spouse must be up-to-date in the payment of all existing loan accounts with SSS subject to verification by the SSS
• SSS reserves the right to require additional documents if deemed necessary
• Application Fee – ½ of 1% of loan amount or P500 whichever is higher but not to exceed P3,000.00 to be deducted from the first loan release.
• Inspection Fee – P500 for both within and outside Metro Manila

 

Loanable Amount

The maximum loanable amount is P2,000,000.00. The loan amount granted shall be the lowest amount based on the following factors:

 

Appraised value of collateral of at least 70% but not to exceed 90%

Borrower’s capacity to pay

Actual need of the borrower based on the contract to sell/scope of work and bill of materials evaluated by the SSS

 

Housing Loan Type	Amount of Loan
Socialized Housing Loan	Up to P450,000.00
Low-cost Housing Loan	Over P450,000 up to P1,000,000
	P1,000,000 up to 1,500,000
	Over P1,500,000 up to P2,000,000

 

A maximum of three (3) qualified SSS members may be tacked-in for a single loan up to the combined maximum individual availability for the loanable amount secured by the same collateral, provided they are related within the first (1st ) civil degree of consanguinity or affinity.

 

Term of the Loan

The loan is payable in multiples of five (5) years up to a maximum of fifteen (15) years. However, the loan term shall be subject to the following:

 

• The principal borrower’s age shall not exceed 65 years old at the time of loan maturity; and
• The loan term shall not exceed the economic life of the building as determined by the SSS appraiser.

 

Interest Rate

 

Up to P450,000.00 – 8% p.a.

• Over P450,000.00 up to P1,000,000.00 – 9% p.a.
• Over P1,000,000.00 up to P1,500,000.00 – 10% p.a.
• Over P1,500,000.00 up to P2,000,000.00 – 11% p.a.

 

Allowable Collateral/s

• The collateral for the loan – the Transfer Certificate Title/Original Certificate of Title/ Condominium Certificate of Title (TCT/OCT/CCT) issued by the Registry of Deeds in the name of the principal borrower free from liens and encumbrances.

The loan shall be secured by a first Real Estate Mortgage (REM) on the house and lot to be financed. In addition, the REM shall be annotated on the member borrowers TCT/OCT/CCT and shall be registered with the appropriate Registry of Deeds. The loan shall also be covered by an HGC guarantee.

In case the purpose of the loan is the purchase of a residential condominium unit prior to actual construction (pre-selling), other residential property acceptable to SSS shall be submitted as collateral to secure the loan.

 

The following are not acceptable as collateral:

• Land type other than residential
• Less than 15 sq. meters floor area, in case of condominium units
• Less than 32 sq. meters lot area
• Road right of way is less than 1.5 meters
• Free/Homestead/Miscellaneous Sales Patent Titles

 

Insurance Coverage

• Mortgage Redemption Insurance
• Fire Insurance
• Home Guaranty Corporation Coverage
• The insurance premiums shouldered by the borrower.

 

Manners of Payment

 

List of Overseas Payment Centers (For OFWs)

 

• ✅ PNB electronic overseas bills payment
• ✅ i-Remit online branches
• ✅ Ventaja online outlets
• ✅ WDS-Lucky Money online branches
• ✅ Metrobank online branches & subsidiaries
• ✅ BDO Remit Services
• ✅ RCBC Telepay Service
• ✅ BOC Remittance tie-ups
• ✅ AUB Ginto Hatid Express
• ✅ Bancnet online payments (www.bancnetonline.com)
• ✅ Branches or remittance tie-ups of accredited collecting banks

 

 

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