Applying to PAGIBIG Housing Loan as an OFW (Overseas Filipino Worker) and how to get approved

We all know that when we work abroad, time may come that we won’t be able to work anymore. It’s better to invest some of your income, and not just spend them in consumption/ end-user goods. Currently in the Philippine universe, there are several ways to grow your money, but Real Estate is still the hottest best hotspot investment that OFWs can make.

Like my FB page so you can get the latest updates and stay connected for useful announcements.

Housing Loan for OFW OVerseas Filipino Workers

I’ve been a Licensed Real Estate agent for years and most of the questions that I receive from clients or potential buyers is regarding their status as OFW or Overseas Filipino Workers.

Here I log the most frequent questions that clients have and the best way I can give the answers from PAGIBIG representatives, my broker, realty manager, subdivision owner which I work with in our Real Estate office.

What if I am abroad, can I still avail PAGIBIG loan as an OFW?

Yes. As long as you can present a proof of income that can suffice the monthly amortization of your PAGIBIG housing loan.

There are 5 things that you or the PAGIBIG people will consider:

  1. Your Income (must be stated at your OFW Job Contract)
  2. Your Loanable Amount (given by the broker / subdivision)
  3. Your Monthly Amortization (depends on the number of years you select)
  4. Your Age (obviously, advanced in age cannot avail cheaper amort./ longer terms)
  5. Your Civil Status (Married burrowers must have both parties to sign, and married burrowers’ income will be combined to compensate the amortization)

To explain further, below is a hypothetical scenario based from our actual pricing for 3 Bedroom Bungalow House (Affordable Housing).

Scenario 1
Your monthly income: P50,000
Your housing loanable amount: P1,270,000
Your Monthly amortization (15 years): P11,064
Your Age: 35 yrs old
Your Civil Status: Single

Scenario 2
Your monthly income: P12,000
Your housing loanable amount: P1,270,000
Your Monthly amortization (15 years): P11,064
Your Age: 45 yrs old
Your Civil Status: Married

In the Scenario 1 above, the burrower will be approved because her monthly income can compensate or can afford the monthly amortization of PAGIBIG. One scenario that will make her disapproved is that if her monthly salary is below P23,000. Another is if her age is 55.

For Scenario 2, the loan will not be most likely approved- given that the age, monthly income and terms cannot compensate the loan.

For those advanced in age (but still OFW or Overseas), better opt to choose in-house financing. In-house is faster and cheaper, but has higher interest rates. Currently, the interest rates for PAGIBIG housing loan is 6.5% per annum. For in-house, my company offers 12% per annum. 

Do I Need to Be in the Philippines to Avail the Housing Loan?

No. There are possible ways to solve it.

1. Get an SPA. Submit an SPA or fill-up in the real estate office which they normally have. Your SPA can act on your behalf. When the house is finished, PAGIBIG will call you for a seminar but the SPA can attend on your behalf. He/she can be anyone whom you trust, not just a family member.

2. Send the reservation and downpayment initially. In our company, the burrower’s presence is not yet needed during the reservation and downpayment process. During the 2 years from the reservation, the burrower/ owner must go to the office when he arrives at the Philippines in order to sign the documents such as PAGIBIG Housing Loan Application and SPA Form. There may be some which will be required, but the rest can be signed by your SPA.

What are the Rest of the Requirements for OFW PAGIBIG Housing Loan?

Below is the complete list of requirements for PAGIBIG Housing Loan which should be complied by the OFW burrower to avail. Please note that there are different/ additional requirements to burrowers such as OFW Seaman, Local Self-employed and Local Employees.

PAGIBIG HOusing Loan OFW

Below are the scanned copies of the PAGIBIG Housing Loan Application Form

Conclusion:

  1. The younger the OFW burrower, the longer the burrowing terms can be approved by PAGIBIG.
  2. The OFW’s monthly income should be enough to cover the monthly amortization. Housing below 2 Million are considered Affordable Housing.

Do you have any questions? Comment below so I can update and make this article more helpful.

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s