There are many reasons why you work abroad. At the end of the day, it’s about providing a better and secure life and future for your family. To achieve this, you have to put your money in the right investments, including a home you can call your own.
If OWWA has an OWWA Loan to help all Overseas Filipino Workers to put up their own business, PAG-IBIG has a Housing Loan designed specifically for every bagong bayani.
Here’s what you should know about PAG-IBIG Home Loan eligibility, requirements, and everything in between:
Get to Know PAG-IBIG Home Loan for OFW
The Home Development Mutual Fund (HDMF) is a program of the government established to provide affordable housing loan schemes for OFWs. As a member of PAG-IBIG, you can borrow as much as P6 million, depending on your housing needs and your capacity to pay.
- Keep in mind that the PAG-IBIG home loan is obtained for the purpose of acquiring a housing property, improving an existing unit, or refinancing an existing loan. The property can be a residential area, condominium unit, or unit that calls for further construction. Consequently, you can use the funds to pay for brand-new, previously mortgaged with HDMF, or under a rent-to-own program.
OFW as an Eligible Borrower
In case you want to avail of the Home Loan of PAG-IBIG, you should be able to present the following:
- Employment Contract, with English translation if the contract is written in foreign language
- Original Employer’s Certificate of Income. In case you don’t have the original, photocopy is acceptable provided it is duly validated and certified by HDMF Information Officer assigned in the country where you work.
PAG-IBIG Home Loan Requirements
Make sure you have the following documents when applying for a Home Loan:
- PAG-IBIG Home Loan Form or Application with attached recent ID picture
- Membership Status Verification Slip (must have remitted at least 24 months contribution or pay in lumpsum if you are a new member who wants to avail of housing loan)
- Proof of Income such as employment contract, original employer’s certificate, or any other documents to prove such income as long as duly validated and certified by HDMF Information Officer assigned in the country where you work
- Photocopy of one valid ID of the borrower. A photocopy of one valid ID is likewise required on spouse, co-borrower, or Attorney-in-Fact, whichever is applicable
- Duly signed Authorization to Conduct Credit Background Investigation
- If abroad, Special Power of Attorney notarized before the date of departure or duly certified and authenticated by the Philippine Embassy or Consulate in the country where you are working
- Health Statement Form and Full Medical Examination for borrowers above 60 years old or loan amount of more than P2 million – This form is available at any PAG-IBIG Regional Branch, Members Services Support Division – Servicing Department if you are from Metro Manila, or downloadable online
- Marriage Contract, if borrower is married
- Certificate of No Marriage (CENOMAR), if you are single
- Birth Certificate or any proof of relationship if you have co-borrowers
Apart from the documentary requirements, you also have 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 latest Real Estate Tax Receipts
Depending on your loan purpose, you must also 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
PAG-IBIG Home Loan Process
Here is a step-by-step procedure on how to apply for PAG-IBIG Home Loan:
1. Attend a Loan Counselling with a PAG-IBIG Information Officer in the PAG-IBIG Office near you.
2. Fill up application forms like Housing Loan Application (HLA) and Preliminary Loan Counseling Questionnaire (PLCQ). You will also be asked to fill up a medical questionnaire if you are above 60 years old or applying for a loan amounting to P2 million 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 received 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 (CGT) at the BIR within 90 days. A Certificate of Authorizing Registration (CAR) will be released upon payment of CGT.
6. Pay for the Transfer Tax in the local government where the property is located.
7. Proceed to the Registry of Deeds (RD) to transfer the title. An updated tax declaration and Occupancy Permit will be given by the Assessor’s Office and Engineering Office, respectively. In case 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, Occupancy Permit, and Assignment of Loan Proceeds (will come from PAG-IBIG).
Now that you survived the documentation and loan process, make sure you pay the monthly amortization on time. Congratulations!