Overseas Filipino Workers (OFWs) go abroad and work away from their families with one specific goal in mind—to be able to provide for their families and for their lives to be better. So, one of the many things that OFWs actually save up for is a house.
Although it's quite a heap of effort to provide one, there are a ton of institutions who offer OFW house loans. In fact, this year, there were a too few updates on which institutions give these and how much they are willing to lend. So, sit back and you will find out what the best option is for you in getting or applying for house loans.
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What are house loans?
Based on its term, a house loan is a person's key to be able to secure a house without having the full cash to purchase it.
In some cases, people want to pursue a loan in order for them to be able to start a business. May it be an apartment business, construction, or any other type of business, it can be pursued with the loan depending on the financing institution.
Since that house loans is a loan, there would also be requirements, applicants have to submit. Some of the general requirements in securing a house loan would be:
For basic documents:
- Duly accomplished application form of the financial institution
- The original and photocopy of at least two (2) valid I.Ds
- (Only if applicable) Marriage Contract
Income documents
- The consularized Certificate of Employment (CoE) which should have the Income;
- Three (3) months worth of pay stubs or pay slips
- The photocopy of the title (from rental properties)
- Lease Contract (from rental properties)
- Tax declaration photocopy/ies (from rental properties)
- The lot plan (with the vicinity map) (from rental properties)
Additional documents (for the construction loan)
- The bill of the materials that will be used
- Specification of proposed finishes of the building
- Floor plan/map or planned improvement of the building
Which institutions allow these types of loans?
Here in the Philippines, there are a couple of banking institutions or lenders who can guarantee assistance if you need a house loan. All of them are different in terms of how they handle applicants; what the benefits are; how much their minimum and maximum loaning amounts are; and their loan terms.
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For you to know each and every one of them and how they can provide financial assistance, refer to this table:
Financial Institution (Lender) | The Amount of the Loan | The Terms of the Loan |
| Social Security System (SSS) | Up to P450, 000.00 for socialized housing loans and P2 million for the low-cost housing loans. | A total of five (5) years for members who are 60 years old at the time of the application.In multiples of five (5) years up tofifteen (15) years. |
| Pag-IBIG or Home Developmental Mutual Fund (HDMF) | Up to a total of P750, 000.00 | Up to a total of thirty (30) years. |
| United Coconut Planter's Bank (UCPB) | Minimum loanable amount of P500, 000.00 | Up to twenty (20) years for acquisition of houses and lots, condominium units, and townhouses. 10 years for acquiring houses and lots. |
| Security Bank | Up to 80 percent of the appraised value of the desired property. | Minimum term would be one (1) year. Up to twenty-five (25) years for houses and lots; 15 years for condominium units, and residential vacant lots; and 20 years for duplex or townhouses. |
| Rizal Commercial Banking Corporation (RCBC) | Minimum loanable amount of P300, 000.00 up to P10 million. | Up to twenty (20) years. |
| The Philippine National Bank (PNB) (Only for OFWs based in Los Angeles, New York, Singapore, and Japan) | Los Angeles and New York: Up to 80 percent of the verified selling price of the property. Singapore: Up to a total of 70 percent of the verified selling price or the appraised value of the property. Japan: A minimum loanable amount of P500, 000.00 for lots; P1 million for houses and lots. Up to 60 percent of the appraised value for vacant residential lots and 80 percent for residential houses and lots, condominium units, row houses, and townhouses. | Los Angeles and New York: Up to twenty (20) years for purchase of condominium units, houses and lots, apartment units, townhouses, or rowhouses; ten (10) years for the purchase of lot ONLY. Singapore: Up to twenty (20) years. Japan: Up to ten (10) years. |
| PS Bank | Minimum would be at P500, 000.00 or up to 80 percent of the property's appraised value. Has a capacity of P25 million. | Up to ten (25) years for houses and lots, duplexes, condominium units, and townhouses.Ten (10) years for purchases of lots. |
| Land Bank | Minimum loanable amount of P500,000.00. However, it must not be more than 80 percent of the total appraised value of the property. | Maximum of 15 years for OFWs without a co-borrower; 20 years for those who have a co-borrower. |
| EastWest Bank | Minimum loanable amount of P500, 000.00 | Up to thirty (30) years. |
| Chinabank | 80 percent of the appraised value. | Fifteen (15) years for vacant lots; Twenty-five (25) years for houses and lots; and ten (10) years for condominium units. |
| Bank of the Philippine Islands (BPI) | Minimum loanable amount of P400, 000.00.Maximum loanable amount would be 80 percent of the the total appraised value for the house and lot; 60 percent for vacant lots or residential condominium units. | A maximum of ten (10) years for residential condominium units and vacant lots; Twenty-five (25) years for houses and lots. |
| Banco De Oro (BDO Unibank Inc.) | P500, 000.00 or up to 80 percent of the appraised value of the property. | Up to a total of twenty (20) years. |
Benefits of knowing the differences between the housing loans
If you are an OFW, every bit of information would matter. Even if the difference is just sitting on a few thousand pesos, it would have drastic impact for you. However, it does not exempt those people who put too much value of money on something.
One of the main benefits of you knowing what the differences are is that you would be able to budget and plan on the repayment terms. If you are not aware of the repayment terms, you might be shocked; knowing how you need to pay can allow ample time for you to allot budget or for you to plan on it.
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In addition to that, you would have the chance to budget on the materials to start your home. If you want style and sophistication, you have the idea on which financial institution you need to be in because you will know their differences.
Nevertheless, knowing the differences is a huge advantage especially if you are keen on budget and investments.
These house loans are made especially to Overseas Filipino Workers (OFWs). However, that doesn't mean that the regular Filipino citizen does not have nothing. You can ask these institutions on what they offer to people who do not work overseas.
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