Before Buying A House Tips and Guides

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ARE YOU ELIGIBLE FOR A PAG-IBIG HOUSING LOAN?

Wondering if you are already qualified to apply for a housing loan with Pag-IBIG?

Here’s how you can run a quick assessment based on the requirements published by Pag-IBIG.

There are four key considerations you need to take note of when applying for a housing loan:
1.Your Pag-IBIG Membership
2.Your Age
3.Your Capacity to Pay
4.Other Pag-IBIG loans you may have

What do you need to check before you submit your housing loan application?
1.Your membership status. 1.Your membership must be tagged as active and you must have made a minimum of 24 monthly contributions at the time of your loan application.
2.If you have not made consecutive monthly contributions within the last 24 months, you may make a one-time payment to update your account. However, you need to wait for another 24 months before you can apply for a housing loan (some branches allow 12 months).
3.If there are more than one member who will be applying a loan for the same property, all of them must meet the membership status requirement.
4.Pag-IBIG allows up to three members to avail of a single housing loan provided that they are related with the second civil degree of consanguinity.

2.Your age. 1.The borrower member must not be more than 65 years old at the time of the loan application.
2.The borrower member must not be more than 70 years old at the date of maturity.
3.The borrower member must be insurable.

3.Your capacity to pay. 1.Your monthly amortization should not be more than 40% of your Net Disposable Income. You may request for a Monthly Amortization and Net Disposable table from Pag-IBIG; you may use this as a reference of monthly amortization rates based on the total loanable amount.
2.You must be prepared with the funds for down payment or equity.
3.You must also have an updated file of your proof of income such as your Pay Slips, Income Statements, Employment Contract where your salary is indicated.

4.Other Pag-IBIG Loans. 1.You may only apply for and be granted one housing loan at a time.
2.Any previous housing loans with Pag-IBIG must not have been foreclosed, cancelled, or bought back.
3.Payments for outstanding Multi-Purpose Loan must be updated and must not be in arrears at the time of application.

The best time to apply for a housing loan is while you’re in your 30s and early 40s. Should you get disqualified on your first application, you can always try again after a year or two.

The secret is in keeping your Pag-IBIG contributions updated all the time and maintaining a good credit score.

Good luck on your housing loan application!

Requirements for OFW's in
Purchasing property in the Philippines (Must still be a Filipino Citizen)

Dual Citizens and Filipino Citizens can own a land and structure here in the Philippines.

Foreign Nationals and Filipinos who changed their stature to foreign citizen and renounced their Filipino citizenship cannot own a land but can own condominiums here granted that the percentage of ownership of foreigners is about 40 percent only. RA 4726.

It is highly recommended for OFW's to have a representative (SPA)* here in the Philippines to sign some contracts and bank forms for the clients behalf in case he goes back in the country where he works/live other than the Philippines.

These are the simple requirements for OFW's for property purchase in the Philippines:

1. Special Power of Attorney (SPA)* - this document gives authority on all or some of the following in behalf of the client (OFW) in case he cannot stay here in the Philippines for a long period of time:

Sign Documents (Bank Forms - If Loaned and Contracts)

Receive Proceeds of Bank Loan - If Loaned

Execute and Sign Contract to Sell and Deed of Absolute Sale

In SPA's, you may execute and make Attorney in Fact your relatives or family members of legal age. It must me Notarized or Consularized in the place where it is signed**

*Note : In cases that the OFW can finish all the documentations here in the Philippines (2 to 5 months for cash purchase - includes titling) or (3 to 6 months for Bank Loan), he doesn't need to execute an SPA

**Note :
If signed abroad - Consularized : The OFW or Grantor or executor of SPA must sign the SPA Document and proceed to a Philippines consular office to have it consularized (the equivalent of notarization here in the Philippines) and then original copies be sent here via courier.

If signed in the Philippines - Notarized : The cheaper alternative, it just needs the IDs of Attorney in Fact and the passport of the grantor which is the client or the OFW. The passport needs to be photocopied and date of signing and notarization of the Special Power of Attorney (SPA) shall have the same date as the OFW's stay here in the Philippines as seen on the arrival and departure stamps on the Passport.

Reminder***
An SPA doesn't signify ownership to the Attorney in Fact but only authorizes them on some aspects of documentation or receiving of property.

2. Passport - photocopy of identification portion and arrival and departure stamps portions

3. Job Contract and payslips if any - Needed for bank loan purposes

4. Bank Statements - Needed for bank loan purposes

5. Marriage Contract

Other Requirements may be required by some banks.



Bank Loans:

Some banks on the Philippines offer housing loans to OFWs granted that they should not be more than 60 years of age (other banks allow up to 65) on loan maturity

They accept auto debit arrangements or you may opt to open savings or checking accounts**** here in the Philippines for Amortization Payments.

****Some banks are now strict on allowing individuals to open a checking account. Please check on your bank of choice first.

Here they are, the simple requirements for OFW's to purchase a property here in the Philippines. Browse thru our Budget Analytics below or thru our properties on the left and invest your hard earned money in properties that are more stable and have a great income earning opportunity.

IMPORTANT NOTICE!!! EFFECTIVE JANUARY 1, 2018

Due to the proposed Tax Reform under Senate Bill No. 1592 known as "Tax Reform Acceleration and Inclusion (TRAIN)," the following possible effects may be implemented:

1 . Increase in Capital Gain Tax (applicable on
Transfers of Property) from 6% to 20%.

2. Change in Value Added Tax selling from
1.9M (lot) and 3.1M (house and lot)will be
down to vatable selling price at 2M for lot,
house and lot, and condominium.

3. All units worth 2M and up are
automatically subjected to Value Added
Tax.

So, when is the best time to invest? It is NOW!

Common Questions of an OFW regarding Pag-ibig Housing Loan:

1. Naa ko'y Pag-ibig sauna pero wala nako napadayon. Pwede ko makakuha ug balay?

YES, pwede kaayo! Ato lang ipadayon ang imong contribution. Dapat muabot ug 24 months imong contribution aron qualified ka to apply for a housing loan nga affordable.

2. Dili pako member sa Pag-ibig, unsaon pagpamember? Makakuha na dayon ko'g balay?

YES, pwede kaayo! 2 ka pamaage makapemember ka:
1. Magsugo ka sa imong pamilya o paryente.
2. Go to https://www.pagibigfundservices.com/pubreg/starter_page.aspx

Para makaapply dayon ka ug housing loan, bayare ang 24months nga required number of contributions, ug dapat magbayad na ka ana ug monthly.

3. Wala man ko diha sa Pinas, pero gusto nako makakuha ug balay, unsaon man na?

YES, pwede kaayo! Mag-assign lang ka ug membro sa imong pamilya, o paryente, nga mao'y imong masaligan pagpadala ug kuarta ug pag follow up sa imong mga required documents. Siya imong himoon sa gitawag nga "Attorney-In-Fact". Mag-fill-up lang ta ug papel nga ipprovide sa imong house agent/Broker nga mao ang "SPA" or Special Power of Attorney. Kana nga documento magpamatood nga legal nimong gisaligan ang imong "Attoney-in-Fact" nga mao'y morepresentar nimo sa pagkuha sa balay in your behalf. E-mail na sa imoha ang SPA, ipaprint diha sa kung asa ka nga lugar, fill-up-pan, ug panotaryohan or ipa-Red Ribbon sa consul sa embassy sa Pilipinas diha sa kung asa ka nahimotang nga lugar.

Note: Pwede ra na nimo buhaton ang pagpa-Red Ribbon inig human na nimo ug PARESERVE sa balay nga imong gusto kay basin: 1: Mahutdan ka sa balay ug limited usahay ang mga promo UG 2. Ang SPA Format sa Developer pinasahe kay sa kanang gipahimo lang. So pili na sa balay nga swak sa imong budget.

4. Dugay nako member sa Pag-ibig, pero wala ko kahibalo kung pila na akong contribution. Unsaon?

Yes, Pwede kaayo! Magsugo lang ta pagpakuha sa MSVS or Members Status Verification Slip.
Or go to https://www.pagibigfundservices.com para macheck nimo imong contribution.

5. Nakakuha nakog balay sauna and nagkamulo pakog bayad karon, pwede ko makakuha ug isa pa para investment, akong parentahan pohon?

YES. Pwede kaayo! Kung kaya pa sa imong income.
Tip: 1 socialized/lowcost house dapat naa kay 10k (conservative requirement) nga sweldo kada bulan. Kung mokuha kag duha, dapat naa sa 17-20k ang imong sweldo. Kung gusto paka'g more, edi wow! Basta kaya sa bulsa.

CHECKLIST OF REQUIREMENTS FOR Pag-IBIG HOUSING LOAN

How does in-house financing compare with Pag-ibig and banks?

With in-house financing, you get these following advantages:

1.Simple documents required

You don’t need to undergo thorough background/credit check as compared to banks or Pag-ibig. A Filipino wife who has no or inadequate income for herself can be approved for in-house housing loan if she has a husband (such as a foreigner) who can support the monthly amortization. Since the title does not bear the name SPOUSES but only the name of the Filipina married to (foreigner’s name. Whereas banks and Pag-ibig do not approve of loans if the wife does not have enough income to pay for the monthly amortization.

1.Maceda Law or R.A 6656

This law mandates the developers to refund 50% of your payment if you have paid at least 2 years installment even if you are delinquent. Refund is not applicable in mortgage with banks or Pag-ibig.

1.Interest charges remain constant regardless what happens to the economy. If contracted 16%, it shall remain at that throughout the period of the contract. Bank interest rate, on the other hand, are floating and can shoot up in times of crises.

However, the primary advantage of Bank financing and Pag-ibig are that of lower interest rates ranging from 5.5% to 14%++ per annum, excluding processing fees and appraisal fees, which do not exist on in-house financing.

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