Housing Loans for OFWs
Jun 9, 2013
Real estate is a favorite investment among Filipinos probably because of the belief that they would never lose their hard-earned money if they purchase house and lot, farm lands, condominium units, and the like as the value of these properties increases in time. Another reason why it is the investment choice for many is the mushrooming of real estate companies that offer affordable rates and flexible financing schemes. Having a house that one can finally call their own is also the dream of many Filipinos.
However, just like all investment, there are also downsides to house or land purchases. For one, real estate investment would require large amounts of money and profits may not be enjoyed right away.
The answer to the predicament of those who wish to have their dream homes is by investing through the help of housing loans. One option is availing a loan from government agencies such as Social Security System (SSS) and the Home Development Mutual Fund (HDMF) or Pag-Ibig. One can also take a look at the loans that Philippine banks are offering for overseas Filipino workers (OFWs).
Check out the housing loan options for OFWs below:
SSS Housing Loan
Who are qualified?
This is available for OFWs below 65 years old with a minimum of 1 year of 12 months of straight contributions and has not availed any SSS benefits before. There are two options to choose from, a socialized housing loan worth Php300,000 or a low-cost housing loan that ranges from Php500,000 to Php1,000,000.
What are the acceptable purposes SSS Housing Loan?
Construction of a house on a lot owned by the applicant
Buying a lot in which a residence will be built
Buying an existing residence in the form of a house and lot, a townhouse or a condominium unit.
How much is the interest rate and the long term?
The loan term is from 5 to 30 years while the interest rate that will depend on the loan amount can range from 9% to 14% per year.
Who are qualified?
The Pag-IBIG Overseas Program (POP) is a voluntary savings program which aims to give Filipino overseas contract workers ,immigrants and naturalized citizens the chance to avail of a housing loan of as much as P 2,000,000.00 and save for the future. Members can withdraw their accumulated savings after 5, 10, 15 or 20 years of contribution. Aside from the housing loan, members can also apply for a multi-purpose loan and dividends.
Land Bank of the Philippines Bahay Para sa Bagong Bayani Program
This program aims to improve the living condition of Overseas Filipinos through the provision of shelter or improvement and renovation on their future or existing abode at relaxed and flexible terms.
Eligible Borrowers
Holding a live contract from employer;
Filipino citizens;
At least 21 years old and not more than 65 years old upon maturity of the loan;
Clear of adverse credit findings with other creditors
Eligible Loan Purposes
Purchase of residential lot, house and lot, and residential unit like condominium and townhouse;
Construction, improvement or renovation of existing residential unit owned by the OF; and
Refinancing or assumption of existing mortgage loan of the OF
Loan Amount
Loan amount shall be the lowest of the paying capacity of the OF or loan value of collateral with loan value of 80%;
Construction, improvement or renovation of existing residential unit owned by the OF
Interest Rate
Prevailing LANDBANK interest rate on Housing Loan, either fixed for 5, 10, 15, 20 years subject to annual repricing.
Project Cost Financing
LANDBANK – up to 80%
Borrower – OFW – minimum of 20%
Tenor: The loan shall have maximum tenors as follows:
Twenty (20) years, for OF with co-borrower; or
Fifteen (15) years, for OF without a co-borrower
Collateral
Primarily, the object of financing, or separate prime property, if warranted;
Other collateral that may be accepted, in addition to the object of financing:
Hold-out on deposit; and/or
Agrarian Reform Bonds
For more inquiries they can contact telephone Nos.: 5512200 locals: 2260, 2970, 2540, 2497, 2768, 2544 or send an email to: RLD@mail.landbank.com
The Bank of the Philippine Islands makes owning a home much easier through the BPInoy Seafarer's Home Loan Program .
What is the BPInoy Seafarer's Home Loan Program?
The BPInoy Seafarer's Home Loan Program was especially packaged by BPI Direct in partnership with its accredited Manning Agency clients for qualified seafarers and employees. Through this Program, one is assured of low interest rates, easy-on-the pocket loan amortization, speedy loan processing and worry-free loan payment even during off-board months. They even tied-up with accredited real estate developers to make available properties that are of the highest quality, yet very affordable.
What does accredited agency mean?
An accredited Manning Agency is one with an existing Allottee Payroll Remittance Agreement with BPI. This means that your allotments are coursed through BPI.
How can BPI Direct help me pay my monthly amortization during these off-board months?
This is what is special about the BPInoy Seafarer's Home Loan Program. Your payment schedule was programmed such that the monthly payments you make during your contract period are sufficient to answer for the required monthly payments during your off-board months.
Who are qualified to apply for this type of loan?
Seafarers and employees of Manning Agencies with an existing Allottee Payroll Remittance Agreement with BPI are qualified to apply for this loan. You should not be over 60 years old and earning a minimum monthly salary of P40,000.00.
What are the pre-processing documentary requirements?
For seafarers - Certificate of Employment from your Manning Agency and your POEA-authenticated contract.
For Manning Agency employees - Certificate of Employment indicating annual salary and position
What are the loan terms available and interest rate?
Loans are payable for a minimum of 5 years and a maximum of 15 years and the interest rate will be one of the lowest in the market.
What is the minimum loanable amount?
The minimum loanable amount is P400,000.00.
How can I apply for the BPInoy Seafarers Home Loan Program?
Simply log on to www.bpidirect.com and choose Learn More under Loans. You may also call BPI Express Phone 89-100.
United Coconut Planters Bank (UCPB) Home Loan
Who is eligible to apply for a UCPB Home Loan?
Those who have been employed for the last 12 months with a minimum gross monthly income of P40,000.00, or you have been in business for the last 3 years
Where can I use the UCPB Home Loan?
· Purchase a residential lot, house and lot, condominium or townhouse
· Construct a house on your already-owned lot
· Renovate or expand your existing house
· Refinance an existing mortgage from another bank
· Multi-purpose loan (your home is your collateral)
How much can I borrow and how long is the loan term?
The minimum loanable amount is P500,000.00 and the maximum loan term is 15 years.
How can I pay for my UCPB Home Loan?
Enroll your accounts to UCPB Connect (for individuals) or UCPB CM.Biz (for corporations) to setup recurring monthly payments
Issue post-dated checks
Enroll your UCPB account for Automatic Debit Arrangement
How much amortization should I expect to pay?
Your payment structure will be determined by how much you are willing to pay as downpayment, how long your loan term is, or how much you can set aside as monthly payments. They can provide consultation services to design a payment package suited to individual needs.
What are the requirements needed:
Duly Accomplished Housing Loan Application Form
Two (2) Government-issued Valid ID's
Additional documents for OFW:
Certificate of Employment (COE) duly authenticated by Philippine Consulate Crew Contract & Exit Pass validated by POEA (for Seamen)
Original Payslips for the last 3 months
Notarized or authenticated Special Power of Attorney (UCPB Format)
How to apply for a Home Loan:
Go to the nearest UCPB branch or UCPB Consumer Finance Business Center for consultation.
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