Category: OFW Loans

Here’s a sad reality: not everyone is privileged to belong to the upper 1 percent of the society. Most of us need to work hard to be able to buy what we need. Some even have to seek greener pastures and work overseas just to be able to provide a better and more secured future for the family.

In case you need purchase high-value items like a car or a house, or you’re looking for capital to fund your start-up, you end up borrowing money from banks or other private lenders like Balikbayad.

Speaking of loans, here are your options that are specifically designed for Modern Day Heroes like you:

If You Want To Start A Business –

OWWA Loan is recommended. In partnership with Landbank, the purpose of this type of loan is to encourage OFWs to put up their own business through the Enterprise Development and Loan Program.

Unlike other types of business loan, EDLP specifically caters to OFWs where you can borrow from P100,000 to P2 million with annual fixed interest rate of 7.5 percent. More importantly, you are encouraged to attend the entrepreneurial development training wherein you will be given information on how to run a business as well as how to keep it sustainable. Don’t worry because this is free.

If you prefer starting small, then OWWA Reintegration Program could be the right fit. It is open to repatriated and displaced OFWs wherein you will be given livelihood assistance amounting to as much as P10,000. This is enough to help you start a small business.

Balikbayad also offers business loans for OFWs to help you get a fresh start without leaving the country. Simply fill out the online application form and Balikbayad representatives will get back to you regarding the status of your application.

For Your Immediate Cash Needs –

Getting a personal loan is recommended. You can only borrow smaller amounts, although this would mean higher interest rate and shorter loan term.

When it comes to personal loan, try SSS Salary Loan. The agency allows you to borrow money even while you’re abroad and with no collateral requirement. You can borrow an equivalent of your average monthly salary up to twice its amount with an annual interest rate of 10 percent. Loan term is 24 monthly amortizations.

The best part is you can apply for this online.

In Case You Need A New Vehicle For The Family –

Banks offer competitive car or auto loans to its borrowers. Check with your preferred bank if there is a loan facility that is specifically catered to OFWs.

PNB has Global Filipino Auto Loan that allows you to borrow up to 80 percent of the vehicle’s purchase price.

You can also apply at BDO’s Kabayan Auto Loan where you can borrow starting at P100,000 to maximum of 80 percent of the vehicle’s purchase price. Annual interest rate is between 4.74 percent and 6.8 percent, which will depend on your loan term between two and six years.

Ford also offers OFW Assist wherein you can have the opportunity to own your own Ford car and apply for a loan with EastWest Bank.

If You Want To Invest On Your Future Home –

Of course, who doesn’t want to have their own home?

PAG-IBIG Housing Loan is the most sought after loan facility in case you want to have your own home. This loan facility offers the lowest interest rate of maximum of 10 percent per annum. Loan term is longer because you can stretch this for up to 30 years unlike banks’ 10 to 15 years.

If you still prefer borrowing from the bank, then there are options to choose from. PNB has Philippine Home Loan, which allows you to apply even while overseas. The amount you can borrow is anywhere between P500,000 and 80% of the appraised value of the property you’re aiming for.

SSS also has a Direct Housing Loan Facility, which also offers competitive rate and flexible terms for OFWs. Just make sure you made at least 36 months contribution to qualify for this loan.

Collectively, these are called OFW Loans. OFW Loans are loan facilities specifically catered to OFWs to help address your needs. Unlike ordinary types of loan, OFW loans are designed to fit the needs and capacity of the borrower.

Take a look at these loans and see which one suit your needs best. Keep in mind that the loans have a specific purpose, so make sure to use them accordingly.

One of the main reasons why you wanted to work overseas is to be able to provide a better life, standard of living, and future for your family. This includes buying a house that you can call your own home.

Still, the reality is buying a house includes at least a million and you cannot easily shell out the amount. What you do is to apply for a Home Loan through PAG-IBIG or your preferred bank to help finance the purchase of your home.

Unfortunately, pandemic hit the entire world and your job overseas is affected. You’re also worried that you might lose the house you built for your family. Still, you have no choice but to pay since this is borrowed money after all.

How can you save the house you built? Consider home loan refinancing.

What is home loan refinancing?

Refinancing of home loan is the process of paying an existing mortgage using proceeds of a new loan from a different lender. Compared to the old home loan, the new one has lower interest rate and better terms since the purpose of this facility is to help borrowers become more able to pay off the home loan.

Why should you opt for home loan refinancing?

You can get lower interest rate.

Home loan refinancing is all about timing. Because of the pandemic, the Bangko Sentral ng Pilipinas reduced the interest rate to 2.25 percent, the lowest policy interest rate in the history, by far (1). This is to help reduce the impact brought about by the Covid-19 pandemic by making repayment easier.

What is the effect on your home loan interest rate?

Low policy rate means mortgage rates are low as well, which all lenders must strictly adhere to. Your monthly repayment will be lower, too, because the interest rate is decreased by at least one to two percent. This allows you to have additional savings, which you can use for other equally important obligations.

You want to change your loan repayment term.

Longer loan term is not always recommended because you’ll end up paying more because of the interest. On the other hand, short loan term is not ideal, too, because monthly repayment is higher and heavier on the pocket.

When you refinance your home loan, you can negotiate about how long you plan to pay it off. The good thing about this is that whether you choose short or long loan term, you are still able to save because of the lowered interest rates.

You want lower monthly payments.

Think about this: your current home loan lets you pay P10,000 every month. Because you opted for home loan refinancing, you can enjoy a lower interest rate, thereby reducing your monthly amortization to P8,000.

That P2,000 can be considered as savings or an additional fund to pay off other expenses like monthly utility bills.

You want to consolidate your existing loans.

Let’s say you also have other loans like personal loan or auto loan. Did you know that you can consolidate these together with your home loan into one loan?

Typically, personal loan and credit cards have higher interest rates. When you consolidate it with your home loan, you can enjoy lower rates, which means you will be able to reduce the amount of money that goes into loan payment.

The best part is you only have to worry about one loan. There’s no more excuse for missed or delayed payments just because “you forgot.”

Scout for lenders that offer home loan refinancing. Explore the features since every lender have different offers. Find an offer that you can greatly benefit from. You will be able to save more money, which you can re-allocate for savings, payment of utility bills, or fund for your new online business. More importantly, you won’t lose your home that you built for your family.

References:

(1) https://www.cnn.ph/business/2020/10/1/BSP-policy-rate-decision-October-2020.html

Being an Overseas Filipino Worker is not easy. You have to be thousands of kilometers away from your loved ones just to seek greener pastures. You also have to adjust to the new environment and make peace with people with different nationalities while battling with homesickness. Even if you are earning in dollars, you will still be bombarded with messages from back home because money doesn’t seem to be enough.

This is why you resort to OFW Loan to help you get through with the expenses back home. This type of loan caters to OFWs like you, which could help you in many things like starting your own business or covering expenses.

But before you apply, there are certain questions you need to ask yourself, which helps boost your chances of approval.

Why do you need to apply for a loan?

This is the first question you need to ask yourself before you apply for OFW Loan. It is easy to say that you need this and that but if you think deeper, do you really have to apply?

Before submitting your loan application, ask yourself first why you need a loan. Ask yourself the purpose of the loan and how it could help you. If you can’t justify your “need” to get a loan, then don’t apply. You might end up in debt – and you surely don’t want that.

Can you verify your personal information?

Identity verification is important for lenders. This tells them that a certain applicant is a real person and exists.

Don’t worry because lenders only ask basic information such as your name, address, mobile number, and employment details among others. It is strongly advisable that you only put honest and truthful information about yourself. Lenders often conduct background checks to verify the information in your application form, so make sure you can back it up.

How much do you plan to borrow?

Did you know that one of the most common reasons why loan application is rejected is unrealistic loan amount?

Before you click “Submit,” ask yourself how much do you really need – and stick to that. Avoid borrowing the maximum amount, especially when you cannot back up your capacity to pay the loan. Show the lender that this specific amount is what you only need and you’re good with it.

Most lenders have online calculators on their websites. Use that feature to check the breakdown and how much you will pay given this particular loan amount and term.

Can you pay for the loan?

This is another important question you should answer before you apply for the loan. The truth is it’s not enough that you earn big and in dollars. Lenders pay attention to your capacity to pay as well.

Therefore, prove your capacity to pay. Show bank statements and proof of income. If you have existing investments, which we assume you have, then present that as well. In case you have a small business whether overseas or back home, make sure you show that as well.

Do you have unpaid loans?

We understand that there are certain situations in life when you just have to borrow money – whatever it takes. The question now is what is the status of these loans?

If you have unpaid loans that dates back years ago, then there is a possibility that your loan application might be rejected. Lenders are very particular with credit history because it shows not just your capacity to borrow money but also how responsible you are as a borrower.

Don’t worry. Existing or unpaid debts does not automatically mean your application will be rejected. Just make sure that these bills are constantly paid and you’re good to go.

Are you ready to apply for an OFW Loan?

Let’s say you were able to put up a sari-sari store, thanks to the additional income you earned abroad. So far, it is going well until tragedy struck. You don’t want to let go of that store because somehow, it helps you in augmenting expenses back home.

What do you do then? You plan to borrow money.

Unfortunately, banks ask a lot of documents to prove that you are capable to pay. Some may not even accommodate you because you don’t have an account with them. Because you really need additional funds to ensure continuity of your business, you decide to borrow from 5-6 lenders.

Here’s the thing: 5-6 lenders could drown you in debt, no thanks to their sky-high interest rates and unreasonable loan terms. Since you need the funds, you can’t say no.

The good news the government could help. This year and per President Rodrigo Duterte’s directive to replace 5-6 lending scheme, the Department of Trade and Industry (DTI) launched the P3 Program.

What is the P3 Program all about?

P3 stands for Pondo sa Pagbabago at Pag-asenso. It aims not only to replace the 5-6 lending scheme but also and more importantly, to provide an affordable micro-financing facility to the Filipinos.

DTI’s P3 Program fund will be coursed through to business centers where micro-finance institutions (MFIs) and Small Business Corp. (SB Corp., which is an attached agency of DTI) may operate.

Apparently, not everyone is qualified. P3 Program prioritizes micro, small, and medium enterprises from the poorest provinces in the Philippines and have no or having difficulty in accessing credit. This means only those with asset size of not more than P3 million are considered as micro-entrepreneurs.

Who are considered as micro-entrepreneurs?

They are but not limited to:

• Market vendors
• Micro-entrepeneurs
• Members of cooperatives, industry associations, or co-operators
• Agri-businessmen
• Sari-sari store owners
• Stall owners

In other words, only micro-entrepreneurs engaging in a legitimate livelihood or business activity may borrow from the P3 program.

Terms of P3 Program

• Loanable Amount: P5,000 to P200,000, depending on the lender’s capacity to pay and size of the business
• Interest Rate: maximum of 26 percent per annum or 2.5 percent per month (5-6 lenders charge more than 20 percent per day, week, or month)
• Loan Purpose: for business purposes ONLY wherein the funds will be used for expansion and/or purchase of additional suppliies
• No collateral requirement, which means you could borrow money even if you don’t have an asset

P3 Loan Requirements

• Duly accomplished loan application form
• ID picture
• Photocopy of any government-issued ID
• Barangay Clearance, which must be issued at least three months prior to application
• Evidence that the micro-entrepreneur is engaged in a legitimate business for at least one year such as Certification from the Local Government Unit
• Proof of residence for at least one year
• Business Name Registration from DTI (for loans above P50,000)

How to Apply for P3 Program

SB Corp. partnered with hundreds of micro-finance institutions

People will always have never ending needs. If you’re an OFW, your “needs” may be greater than the others because you have to carry most of the burden on your shoulders. You will always be compelled to send money for repairs at home, a medical emergency, payment for your kid’s tuition fee (or your niece’s school fees), or whatever expense your family – and extended family – could think of.

Thankfully, there are financial institutions that could help cater to all your needs, similar to what we do in Balikbayad. 

Check out these loan facilities that could help you for the following specific purposes:

For your home needs – PAGIBIG Housing Loan 

Shelling out hundreds of thousands of dollars for home improvement, purchase of a property, or building your home will never be easy on your pocket. The good news is there is a government agency that could help you with your housing needs.

As of this writing, PAG-IBIG has the lowest housing rates in the market at 3 and 5.375 percent for housing loans for loans up to P580K and P6 million, respectively. This could help you a lot in building your dream home without breaking the bank. Just make sure you contribute monthly so you won’t have a problem during the application process.

You may check out this post to learn more about PAG-IBIG Housing Loan.

In case you are looking for an alternative, then the SSS Housing Loan could also be a good facility for you.

For your business needs – OWWA Loan 

One of your priorities is to ensure continuity of funds for a more stable life. One way to do that is by putting up your own business. In case you don’t have sufficient capital, then OWWA Loan might help.

OWWA Loan allows you to borrow up to P2 million and offers free entrepreneurial training to ensure sustainability of your business. It also has a fixed rate of 7.5 percent.

You can check out this website to know more about OWWA Loan.

Despite the promise, applying and getting approved could be difficult. The OWWA Loan is limited to a budget, which means the agency has to screen every application thoroughly and grant the loan to OFWs who they think has the best potential in business. If you’re looking for an alternative sans the hassle, then Balikbayad is here to help. Simply fill out the loan application form for pre-approval and we will get back to you as soon as we can.

For your car needs – BDO Auto Loan 

Aside from house, you also want to have your own car that will bring you and your family from point A to point B. If you’re not willing to shell out money from your savings account, then applying for an auto loan could be your savior for that dream car.

BDO has a competitive package for auto loan. You can borrow starting at P100,000 up to maximum of 80 percent of the value of your car. Requirements are easier to comply with for OFWs and loan terms are flexible. You could learn more about BDO Auto Loan by checking this link.

You may also check out this post for comparison of auto loans in the Philippines.

For your sudden / personal needs – SSS Salary Loan 

Despite earning in dollars and making sure that you set aside a particular amount every month for savings, there will always be days when what you have is not enough. Who do you resort to during these days?

Family or friends may be the first choice but don’t forget that SSS has a salary loan too. You could borrow one- or two-months worth of salary loan depending on your monthly salary credit. Interest is lower and the loan is payable within two years.

Still, don’t rely too much on loans. This could get out of control especially when you are juggling too much debts on your plate. Live a simple lifestyle, spend only when necessary, invest your money, and make sure you set aside money for savings. You’ll never know what will happen so it is best to be prepared.

Are you an OFW who is currently in need of funds to put up your business? Do you need additional working capital for your inventory needs? Don’t worry. Balikbayad is here to help.

Balikbayad was launched with one thing in mind: YOU. 

Banks could provide you a lending hand in case you need to borrow money for your business. Apparently, this could mean sending tons of documents to prove your earning capacity and potential to pay the loan. We want to make this easier for you by providing you with options sans the hassle of coming up with a lot of documents.

Because of that need, we are happy to announce that aside from the Adriatico office, Balikbayad launched two more branches to better equip your growing needs and demands in the business.

Below are the addresses and contact details of our two more branches:

Makati 5/F Salustiana T. Dy Tower, Paseo de Roxas Legaspi Village, Makati City (near Greenbelt 1).

You can contact us at 0977-7796594 or 0949-5777040. 

Kalaw 9/F TM Kalaw Center, 667 TM Kalaw St., Ermita, Manila

You can also contact us at 0977-7796594 or 0949-5777040. 

To our OFW friends in Cebu and nearby provinces in Visayas region, our Cebu branch is still ready to serve you. Don’t hesitate to call or visit in case you of your financial needs.

Keep in mind that Balikbayad wants to see every OFW succeed in life. We are here and more than ready to provide you and help you with your financial needs. We’ll be waiting for you.

Last September 15, 2018, Northern Luzon were punished by Typhoon Ompong, the strongest typhoon to hit this year, thereby destroying houses, farmlands, public and private buildings and establishments, and even electric posts. While the typhoon lasted for only a day, it left thousands of displaced families and millions-worth of damages.

Unfortunately, Ompong is just one of the many typhoons that will visit the Philippines. While you and your family will be able to recover in time, which also means you need to work extra hard overseas, rehabilitation entails costs.

The good news is the government is willing to help through SSS or PAG-IBIG Calamity Loan. This loan facility is available to Filipinos who were affected by a calamity as declared by the National Disaster Risk Reduction and Management Council (NDRRMC) and suffered loss and damages as a result of the calamity.

Here’s what you need to know between the two:

SSS Calamity Loan 

Features:

• Loan Amount – One monthly salary credit (MSC) based on the average of the last 12 MSCs or total amount of damage, whichever is lower
• Interest Rate – 10 percent per annum
• Penalty Fee – One percent per month until fully paid
• Loan Repayment – Payable within two years in 24 equal monthly installments
• Waiver of one percent service fee
• Must be availed within three months from the happening of the calamity

Who can apply? 

• Has at least 36 months of contribution, six of which must be posted within the last 12 months prior to application of Calamity Loan
• Resident of calamity-declared area and suffered losses or damages to the property
• No outstanding loan with SSS (Loan Restructuring Program and  Calamity Loan Assistance Program)
• Applicant must not have been granted any final benefit (retirement, death, total permanent disability) at the time of the application

How to Apply for SSS Calamity Loan (procedure is enumerated for OFWs only)

• Fill out Calamity Loan Assistance application form. You can get a copy of the form here.
• Personal appearance in the nearest SSS branch is required, but for OFWs, submit an Authorization Letter to certify that person transacting with SSS was authorized by you.
• Submit scanned copies of IDs or documents that proves your status as OFW as well as original copies of IDs of your authorized representative.
• Submit Barangay / City / NDRRMC / LDRRMC Certification that you were affected by the calamity. You can also get a copy here.

You can visit the nearest SSS branch, send email at member_relations@sss.gov.ph, or call SSS Call Center Hotline at 920-6446 to 55 for more details.

PAG-IBIG Calamity Loan

Features:

• Loan Amount – Up to 80 percent of the Total Accumulated Value (TAV)
• Interest Rate – 5.95 percent per annum
• Repayment Period – Equal monthly installments payable for 24 months with grace period of three months. This means if you apply on January, you may start paying the loan on April or on the fourth month. Payment must be made every 15th of the month.

Who can apply?

• Must made at least 24 months contribution with at least one monthly contribution in the last six months prior to the date of application. In case you haven’t made at least 24 months contribution, then you must show proof that your total savings is equivalent to 24 months of contribution.
• A resident of the area that was declared as calamity-stricken
• In case there is an existing PAG-IBIG Housing Loan, MPL, or calamity loan, existing loan must NOT be in default
• Has sufficient proof of income

How to Apply 

• Submit duly-accomplished application form in any PAG-IBIG branches near you. You can get a copy of the application form here.
• Submit supporting document such as Proof of Income and photocopy of two government-issued IDs
• Accomplish and submit Declaration of Being Affected by Calamity. You can try using this form.
• For OFWs, your family member might be required to submit a Special Power of Attorney to transact on your behalf. You can use this SPA form.

Keep in mind that these facilities can only be applied for within three months from the happening of the calamity. In case you were affected, the calamity loans could be helpful in getting your family back on their feet.

What do you plan to do when you get home from the Philippines? Most OFWs will look for a new job overseas to be able to finance and sustain a good life for their family. If you are wiser with the way you handle money and finances back home, then applying for a new job abroad every two years won’t be necessary. In fact, you might be having your own business after three to five trips overseas.

We know that putting up your own business is not as easy as it seems. You need to ensure that your business idea is sustainable to make sure that it will go on for years. Then there’s the financial side. Even if you have the brightest idea that will surely change the Filipino way of life, you need to have money or capital to make this idea happen.

This is where business loan comes in. It gives you additional working capital to make your business dreams happen. Apparently, business loans come in different types as well, each of them catering to specific needs.

Here’s what you need to know about the different kinds of this type of facility:

Secured Business Loan 

From the name itself, you can easily tell that this type of business loan requires collateral. In case of default, lender may use the collateral to pay for your existing loan obligation.

Don’t worry. The good thing about this type of loan is that you can enjoy higher loan amount, lower interest rate, and longer loan terms since your loan is secured by a collateral and risk is reduced. This is why going for a secured business loan is ideal, especially for those who are still starting with their business.

Loan amount varies per lender. Maximum amount you can borrow will also depend on the security you will offer. Lenders impose a limit and percentage for maximum loan amount based on your collateral. For instance, if you offer real property, you can only borrow up to 60 percent of the property’s appraised value.

What type of collateral, you might ask. Anything that is under your name. Real estate property is the most common type of collateral used, although you have to pay for appraisal fee and make sure that your real estate tax payment is updated. Aside from this, you can also use your car (chattel mortgage) or time deposit (Deed of Assignment) when you apply for a secured business loan.

Term Loan 

In case you wanted more manageable payment terms, then this type of business loan is ideal for you.

Term loan offers short- or long-term business funding while keeping your own funds intact. You can avail of this facility if you want to get into franchising, expand your existing business, purchase of new equipment, or even purchase, construction, or renovation of business space. You can get minimum of P50,000 and maximum of P20 million, payable within one (short-term loan) to 15 (long-term loan) years.

In terms of payment, this would vary per lender. Term loans are typically paid monthly, which includes both principal and interest (rate is either fixed or based on prevailing market rate), but some would allow quarterly, semi-annual, or annual payment.

READ: What You Need to Know about OWWA Loan 

Credit Line

There are instances when you don’t really need a big amount, but you just want money available at your disposal. In that case, credit line is your best option for your business loan.

Credit line is a type of facility that offers short-term loan and quick access to money whenever you need, which is usually good for one year. You can use this for purchase of additional supplies or inventory, contract financing, additional working capital, or accounts receivable among others. Minimum loan amount is P100,000 to P20 million, but the amount varies depending on the nature of the loan. You can pay the loan every month, but if you have additional funds, paying off the loan can be made.

Don’t worry because you will only pay interest based on the amount you used. For instance, the lender approved P1 million credit line on January. Come February, you only need P300,000 because you fell short in your payroll and promised to pay it after a month. You will only be charged interest on P300,000 and you also have the option to repay the loan without consuming the entire one month.

Unsecured Business Loan 

Let’s say you badly need additional funds, but you don’t have collateral to offer. That’s fine. There are lenders who offer unsecured business loan, which means collateral is not mandatory for the approval of your loan.

Although this sounds ideal for you, unsecured loans typically have lower loan amount, higher interest rate, and shorter loan terms to reduce risk of non-payment of loan. Applying with a co-maker who is in good financial standing and providing sufficient amount of income are recommended when you plan to go for this facility.

Banks don’t normally offer this type of loan because of the risk involved, but private lenders like Balikbayad offers unsecured loan to help starting entrepreneurs like you to start your own business.

In case you’re interested, make sure to fill out our online loan application for pre-approval and we will get back to you as soon as we can.

We get a lot of inquiries about PAG-IBIG Housing Loan for OFWs. This post is intended to boost your chances of approval, although not 100 percent guarantee. 

Are you planning to buy a new home for your family? What about extending your home to the recently acquired lot and have your house renovated? These situations entail cost, which also means big money is involved. In case you don’t have extra funds to do so, you rely on PAG-IBIG, the government agency responsible for providing accessible funds for housing for every Filipino.

According to the latest news from PAG-IBIG, the agency released more than P32.7 billion worth of housing loans for the first half of 2018 alone. This is not surprising since interest rate range from 5.35 percent to 10 percent with up to 30 years repayment terms. Compared to banks, PAG-IBIG offers the most affordable housing loan facility for all its members, including OFWs.

Here’s the challenge: how to get that much-needed approval.

Read up as we share tips that, although won’t guarantee 100 percent approval, but could boost your chances of getting that housing loan:

1. Prove that you have a stable source of income. 

This is a must. Despite the affordable rates to help you become a homeowner, it is important to show the agency that you are capable of paying.

When applying, make sure you provide a copy of your employment contract as well as other income documents that will prove how much you are earning. If you have an existing business, submit financial statements that reflect how much you earn. This will give PAG-IBIG an idea that you can pay the loan no matter what happens.

2. Any PAG-IBIG loans must be settled first. 

This is another must. In case you have previous and unpaid loans from PAG-IBIG, whether it;s a housing loan or multi-purpose loan, then make sure you pay up. Otherwise, this could be a good reason for the agency to deny your loan application.

3. Set a realistic loan amount. 

This is another mistake made by many loan applicants – aiming for the maximum loan amount to borrow. While PAG-IBIG offers up to P6 million, this doesn’t mean you will automatically qualify for it.

This is why it is important to submit proof of income to show the agency that you are capable of paying the loan, regardless of the amount. Don’t expect to get approved for P6 million when you are earning less than P100K every month. More importantly, use the online loan calculator in PAG-IBIG’s website to give you an idea on how much you need to earn to cover for the housing loan.

4. Pay for a higher down payment. 

Do you want to know a secret? If you want a housing loan approval from PAG-IBIG, then make sure you can pay a higher down payment.

PAG-IBIG could help you buy your dream home, but don’t put the burden on the agency. As much as possible, provide at least 20 percent equity or the value of the property. If you can pay more than 20 percent, then much better and higher chances of approval as well.

5. Apply with a co-borrower. 

Many people ask how they can avail of any type of loan when they don;t have property for collateral. The answer is simple – apply with a co-borrower. Still, it’s not just any co-borrower. S/he should be someone who is regularly employed and with excellent credit history if you want to increase your chances of approval.

“Can I apply with more than one borrower?” The answer is yes. In fact, PAG-IBIG allows up to two co-borrowers who are up to second-degree relatives to apply for a housing loan.

Tip: Consider getting a co-borrower who lives with your family. This way, s/he would be more willing to help you out.

6. Buy a home that is within your budget. 

You might want to buy that penthouse in a posh location in Makati, but can you actually afford the monthly amortization?

If you want approval from PAG-IBIG, then make sure you go for a house that you can afford to pay every month. It may not be your dream home, but going for a home that you can pay is much better than living in that dream home for only a few months because you can no longer pay for it monthly.

7. Improve your credit score. 

This is important. Your credit score will tell lenders like PAG-IBIG regarding your capacity to pay and how responsible you are as a borrower. If they see that you miss payments, then how do you expect the agency to approve your loan application?

Don’t worry. You can do something to improve your credit score by following these tips.

8. Submit all the requirements.

It sounds simple, but believe it or not, this could spell a big difference in your loan application.

What you can do is to make a checklist of all the requirements and use it as your guide before you submit your loan application. Compile everything in one envelope and make sure it is complete upon submission.

9. Attend the PAG-IBIG Housing Loan Program Orientation. 

Did you know that this orientation was mandatory before you apply for a loan? At present, the agency conducts free seminars to anyone who wants to apply for PAG-IBIG Housing Loan. This is a good opportunity for you to learn more about this facility and at the same time, get answers directly from PAG-IBIG officials.

Below are the schedules:

• First and third Saturday of the month at 2/F, Jelp Business Solutions Building, 409 Shaw Blvd., Mandaluyong City
• Every second Saturday of the month at 3/F Lecture Hall A, Legislative Building, Quezon City Hall
• Every third Saturday of the month at Rizal Provincial Capitol, Multi-purpose Hall, Antipolo City

Seminar is from 9:00 am to 11:00 am. If you want to join, make sure you’ll call them first at (02) 724-4244.