Category: OFW Loans

Have you tried applying for a loan? As a rule, the applicant is the principal borrower where the loan will be coursed through, unless otherwise stated.

Let’s say that you are already 60 years old or you have unstable income at the time you applied for a loan. Lending companies don’t discriminate based on age or the income bracket you belong to, but they will require you to have a co-maker, preferably your sibling or child above 18 years, to apply for a loan and improve your chances of approval.

What is a co-maker? What are the responsibilities of being a co-maker? Will he or she be liable to pay for the loan too? Read on to find out.

Understanding Co-Maker a Little Bit Better 

By definition, co-maker is a person who, by virtue of contract, promises to pay the loan of another in case of default. He or she is often used when you apply for a collateral loan and when the borrower is unable to meet certain credit criteria such as age or insufficient proof of income. By having a co-maker, you can increase the amount of loan and boost chances of approval, especially if the co-maker is in good credit standing and has sufficient income.

As a co-maker, he or she does not receive or benefit from the proceeds of the loan. Nonetheless, one is responsible in ensuring that the full amount of the loan including interests are paid.

Assuming that you defaulted payment and your co-maker was made to pay the loan. Does he or she have any right of reimbursement from you? The answer is yes. The co-maker can demand reimbursement from the principal borrower for all the payments made in relation to the loan.

Co-Borrower versus Co-Maker

Don’t mistake co-maker with co-borrower. The nature may be the same, but a co-borrower is more common on non-collateral loan and often billed to pay for the monthly loan amortization in case the principal failed to make any payment.

In other words, the obligation to pay commenced at the start of the loan and has benefitted from the proceeds.

Various Reasons Why You Need a Co-Maker:

• To assure lenders that the loan will be paid no matter what happens
• Get a higher loanable amount
• Improve chances of loan approval despite limited to no income or low-value collateral
• Gain the lender’s trust, which could potentially improve your credit standing
• Additional assistance to pay the loan amortization
• Prevent foreclosure of your property in case you are unable to pay your loan

The key is to choose a co-maker that has a stable source of income and with good credit standing. Unfortunately, not everyone are willing to be a co-maker. Even if someone can back you up to pay for your loan, make sure to do everything that you can to fulfill your loan obligations and don’t pass the burden to someone.

Check out this reminder to the public posted by Bangko Sentral ng Pilipinas regarding being a co-maker.

There are tons of loan facilities available for OFWs that will suit your needs – from purchasing your first car to buying your new home to even putting up your own business. Whatever your needs are, one thing is for sure: you will always encounter the same loan terms in every application.

Before you apply for a loan, make sure you familiarize yourself with these terms and concepts:

Eligibility

This refers to the requirements you need to meet in order to qualify for a loan. Eligibility requirements vary from lender to lender. Nonetheless, the most basic requirements, especially for OFW Loan includes:

• At least 21 to 60 years old at the time of the loan maturity
• Overseas Employment Certificate (for both land-based and sea-based workers) or Seafarers Registration Certificate (for sea-based workers)
• Passport
• Working Visa
• Proof of Residence such as electric bill
• Valid and government-issued ID
• Employment Contract

There are several lending companies that accepts these requirements such as Balikbayad. Nonetheless, check the eligibility requirements needed by lending companies before you apply to speed up the processing of your application.

Interest Rate

There are two kinds of interest rates: fixed and variable or adjustable.

Fixed rate remains constant. This means if your initial rate is at 8%, it will remain 8% the entire duration of the loan, regardless of the changes in the market. On the other hand, variable rate is based on the prevailing standard market rate and changes over time.

The type of interest rate depends on the nature of your loan.

Security or Collateral 

In the context of loans, security or collateral is any asset used to guarantee the payment of the loan. It can be a real property (land, house, or condominium unit), chattel (car), stocks, bonds, goods or fruits of the business, deposits, or any other assets with monetary value.

A collateral is necessary especially if you are applying for a housing loan or business loan. On the other hand, personal loans and credit card application are examples of unsecured loans and do not need collateral.

Read more about secured and unsecured loans here.

Loan Term

This refers to the duration of your loan in which you have to pay back before the term ends. Depending on your loan facility, loan term can be as short as 30 days to even 15 or 20 years.

Credit Standing

Also referred to as credit score, credit standing is your reputation for repaying or meeting your financial obligations. The higher and the better your credit score is, the more willing a lender will be in financing your cash flow needs.

Before you apply for a loan, it is important to look into your credit standing first. This will help you check whether you are credit-worthy or not. Don’t worry. There are many ways to help you boost your credit score and get your loan approved. You can learn more about it in this post.

Processing Fee

Every lending company charges its clients with a fee for the processing of loan application. This is called processing fee or loan application fee.

Some lending companies deduct the processing fee on the total loanable amount. For instance, if you borrowed P10,000, you cannot get the amount in full because fees were deducted. On the other hand, there are lending companies such as Balikbayad that deduct the fees on the monthly installment.

Payment Terms 

This refers to the manner and mode of payment for your loan.

For convenience, most lending companies recommend automatic debit arrangement wherein your account is linked. Some require issuance of post-dated checks that will cover the entire amount including interests or remit directly to the lender’s corporate bank account.

Payments are also done in a monthly basis. Make sure that you are able to pay on time to prevent issues in the future.

Being an Overseas Filipino Worker is not forever. No matter how long you work abroad, there will always be a bigger possibility of going back and settling in the Philippines. If you happen to work in countries that are experiencing war or political conflict like Syria, the Philippine government will order mandatory repatriation, forcing you to go home.

To prepare for that, many OFWs decide to open up their own business, no matter how small it is, to help them earn money for the family. Apparently, not many OFWs have enough capital that will help in starting your own business.

This is where OWWA Loan Program comes in.

1) A reliable business partner. The government recognizes the hard work of all OFWs. Despite earning in dollars, they know that you will need extra help when the time comes and you will decide to open your own business. The The OWWA Loan for OFW helps finance your business needs for up to P2 million so you can get back on your feet and have a sustainable source of income for your family. This way, you don’t have to go back abroad to work.

2) The Enterprise Development Training. Apart from the amount you will receive to finance your business, you will be required to undergo Enterprise Development Training or EDT. In fact, this is one of the mandatory requirements you need to comply with to get your loan approved.

This training covers what you need to know about starting, managing, and sustaining a business. You will also have project-specific training or immersion according to the business you plan to put up and make a business plan, which will be submitted together with other requirements for OWWA Loan. The EDT ensures that you are equipped with the necessary knowledge and skills to help you succeed in your entrepreneurial journey.

Read more about EDT here.

3) Variety of business allowed. Another good thing about OWWA Loan is that it is applicable to various kinds of business. Construction, rental services, service or trading, franchising, transport, and health care are among the allowable businesses. Aside from that, you will also have a better understanding of your chosen field through the Enterprise Development Training.

4) Specifically tailored for OFWs. There are various banks and lending institutions that have facilities for OFWs. Apparently, there are few that caters to OFW and their business needs. The Philippine OWWA Loan is one of them and it is intended to support every OFW’s ability to succeed in the field of entrepreneurship.

Keep in mind that OWWA Loan for OFW is there to assist you in starting your business. The success will depend on you, so make sure you choose a field that will suit not just your needs but your interests as well.

Who doesn’t need money? Regardless of the currency of the money you are earning, everybody needs cash to pay for the rent, buy food for the table, and send the kids to school. Because of this need for cash, banks and other lending institutions came up with different facilities that will suit your specific needs.

This includes:

Personal Loan 

As the name suggests, this type of loan allows you to use the funds for whatever purpose. A personal loan allows you financial flexibility, which is why it is often turned to as a source of quick cash, especially during emergency situations.

Banks and other financial institutions offer different types of personal loans, depending on the borrower’s needs. You can use the funds to pay for medical bills, tuition fee, home improvement, for vacation or travel, to sponsor special events, or even to buy furniture or gadgets.

The good thing about personal loan is that you get to enjoy low interest rates, flexible monthly terms that ranges from three months to 36 months, and limited collateral (for instance, time deposit). On the other hand, the amount of loan is limited, with some banks allowing up to P1 million only. Nonetheless, you can borrow as little as P10,000.00

Car Loan 

If you are looking for a vehicle, whether brand new or previously-owned, then lending institutions can help you get one through Car or Auto Loan.

Compared to personal loan, auto loan lends you money for the purchase of your vehicle, which you need to pay within three to five years, depending on your arrangement with the bank. You get to enjoy low interest rates as well, although you might have to pay higher monthly amortization if you will buy a previously-owned vehicle.

Home Loan 

Do you want a place you can finally call your own? In that case, a housing loan facility is best for you.

A Housing Loan allows you to buy a newly-developed lot, a residential house and lot or condominium unit, or to pay for the construction or completion of a residential unit. You may also opt for a Housing Loan to refinance an existing home mortgage or to improve or renovate an existing property.

Unlike Personal and Auto Loans, a Housing Loan can be heavy on the budget. Housing Loans are long-term loans that you can pay within 15 years or less, depending on the terms agreed upon with the bank. This type of loan facility also require mortgage, which is usually the property you are planning to acquire or renovate.

When applying for a Home Loan, it is important to compare the rates and payment terms offered by various banks. You can also check SSS Direct Housing Facility Loan or Housing Loan from PAG-IBIG to get you started.

Business Loan 

Surely, you don’t want to work overseas forever. As much as possible, you want to settle in the Philippines with your family and open up a sustainable business, no matter how small it is.

In that case, you can consider getting a business loan. This will provide you enough capital to get you started and open up and grow your business. The loanable amount, which ranges from P100,000 to P2 million, may vary depending on your security.

Before you apply for a loan, identify your needs and establish the goals you want to achieve. This will make it easier for you to determine the kind of loan facility that will suit for your needs.

Surely, you don’t want to work abroad forever. Nonetheless, you work hard and save so you can start a small but sustainable business in the Philippines. You are even thinking of getting an OFW Loan to help you jumpstart your entrepreneur life.

Before your loan is granted, banks and other lending institutions need to dig deeper and check your credit standing. This is crucial because your credit standing is one of the deciding factors for the grant or denial of your loan. Poor credit standing equates to outright denial and harder time to get a bank approval, which you don’t want to happen.

Don’t worry. You can boost your credit score with the help of these tips: 1) Get a credit card and make sure to use it wisely.

This is the first and easiest step in boosting your credit standing. This is because it the simplest way to show banks that you are a financially good-paying and responsible borrower. You can show how disciplined you are in terms of making purchases and paying your dues on time, which leads you to the next tip.

2) Always pay in full and on time. 

Getting a credit card is just one part of boosting your credit standing. The challenge is when the bill comes and how much you can pay.

You can come up with tons of excuses – forgetting about the due date, lack of funds, emergency, long lines – and sadly, banks will only see that as late payment, which is not good. As much as possible, pay on time and in full in a consistent manner. Minimum payment is acceptable, but the remaining balance plus interest will be carried over to the next billing statement – and it’s not a good sign.

3) Avoid going beyond your credit limit. 

Here’s the danger of having a credit card: there is a tendency to use it to the last centavo – and more. After all, you can always pay for the minimum fee every month to avoid incurring penalty. Unfortunately, lending institutions frown upon this and consider it as a red flag. This could have a negative effect on your credit score.

If you can’t pay on time, consider paying in installments or better yet, avoid making purchases if you can’t pay in cash.

4) Limit to one or two credit cards. 

Banks these days can be a source of temptation, especially if they see how much savings you have in their bank. They tend to send your credit cards at your disposal. The problem with this is that there is a tendency to use them without paying all your purchases in full at the end of the month. Maintaining three or four is fine as long as you are able to pay in full and on time, which will have a positive effect in your credit score. Otherwise, stick to one or two. This will save you from drowning in debt too.

5) Keep your debts to a minimum. 

In checking your credit standing, banks will look into not just your average monthly deposits in the bank and credit cards but also other past and existing loan facilities with other financial institutions. If you have existing loans, make sure to pay them off or at least keep them to a minimum. You may also consider consolidating your debts or transfer credit card balances into a credit card with lower interest rate.

6) Ask for a raise in your credit limit, if possible. 

Don’t get too excited. Keep in mind that credit reports are based on percentages. This means high credit limit often result to lower credit utilization.

For instance, credit card A has an outstanding balance of P10,000 and your current credit limit is P15,000. You have a credit utilization rate of at least 65%, which is not good. You asked for an increase in credit limit, which the bank granted and gave you P25,000. At this point, you have a credit utilization rate of 40%, which is lower and more acceptable than the 65%.

The rule is simple: pay on time. Otherwise, minimize your debt and an increase in your credit score will follow.

Personal loan is a type of loan that you can use to finance smaller purchases such as home renovation, payment of tuition fee for your child, or finance a family vacation among others. In other words, it is a multi-purpose loan that allows you to use the funds on things that matter to you.

Compared to home or car loan, personal loan has shorter term and more flexible monthly installment scheme. Nonetheless, you can only borrow as much as P1 million, depending on your bank of choice.

Here’s the thing: with the uncertainty that comes from working overseas, how can you get your personal loan approved?

Here’s how: 1. Open and maintain a savings account. 

Savings account serves dual purpose: for money-keeping and a credit booster. Aside from serving as your fund for the rainy days, a savings account shows your ability to manage money and eventually loan payments, especially if you regularly contribute in it.

2. Be honest and truthful with your loan application information. 

There is a reason why banks ask your address, home or mobile number, occupation, and estimate of monthly salary among others. They need to verify if you are a real person and capable of paying the loan. Therefore, supply only factual and truthful information in your loan application. If they cannot contact you, then no loan processing will take place.

3. Maintain a good credit standing. 

Credit standing is your reputation that reflects your ability to meet various financial obligations. The better your credit standing, the higher the possibility of getting your personal loan approved. On the other hand, unpaid credit card debts or bounced checks are considered red flags and banks don’t like them.

Even if you don’t intend to get any type of loan, it is still important to maintain a good credit standing. This will facilitate and speed up loan processing in the future in case the need for additional funds arises.

4. Know your options. 

There are tons of banks and lending institutions that offer personal loan at competitive rates and packages. Before you apply for one, make sure to check the facilities that offer your needs, easy and flexible payment terms, and other features that allows you to get more than what you apply for. This may take time, but familiarizing yourself with the procedure will be helpful when you apply for a personal loan.

5. Prepare the needed requirements. 

Apart from incomplete or insufficient information, one of the reasons why loan processing takes time is because of incomplete requirements. Once you made up your mind on where to avail of a personal loan, make sure you prepared all the documents needed to process the loan. After all, banks won’t process your application and release the funds if you can’t surrender all the documentary requirements required from you.

6. Be realistic in terms of loan amount. 

You want P1 million, but do you really need that amount when all that you want is to finance your child’s tuition fee? This is where the importance of providing accurate information comes in. Banks assess your ability to repay the loan according to your employment and savings account. If you are unable to show any documents to prove such ability, then don’t expect the bank to grant you the maximum loan amount. After all, an outright decline is possible.

7. One bank at a time. 

Here’s another tip: don’t apply for a personal loan in several banks all at the same time. You might want to take chances and believe that at least one (or two) will grant your loan. Believe it or not, this will reflect during your credit investigation and banks may think that you are financially trapped – and it’s not good. There is a higher chance of getting your application declined as well.

The next time you apply for a personal loan, take these seven tips in mind. There is no guarantee of approval, but these tips will help you boost your chances of getting your loan approved.

Overseas Filipino Workers are hailed as “heroes” or in Filipino, “bagong bayani.” Because of this, various options and loan facilities are offered specifically for you. Oftentimes, you get special treatment and special rates as well.

How come your OFW Loan still gets rejected no matter how many times you apply?

Here’s why: 1) Incorrect / Incomplete / Unclear Information 

The information you will provide is very important. Banks and other lending facilities use this information to check your background and at the same time, determine your capacity to pay the loan. Any inconsistencies such as address or mobile number could delay your OFW loan or even gets declined.

Therefore, make sure that all the information you will provide in the loan application is true and complete. Submit all the required paperwork to prove your credit worthiness. Don’t worry. Your information will remain confidential.

2) Lack of Stable Income 

Despite what was written in the employment contract, you have little control over it. Depending on the situation and your employer, the term or nature of your employment might change or prematurely terminated. This is the reason why lending institutions reject your OFW Loan. They need to see your capacity and ability to pay the loan in a timely manner – and six months working overseas is not enough to prove that. Jumping from one job to another is also not a good sign for the banks.

Therefore, stabilize your job and prove that you are worthy of credit. If you really need that loan, apply with a co-borrower, preferably a close relative with stable source of income and good credit standing. This could boost your chances of getting your OFW Loan approved.

3) Negative / Poor Financial Record 

Do you have unpaid credit cards or loan facilities you haven’t paid for the longest time? That could affect your credit standing and result to OFW loan rejection.

Lending institutions are sensitive when it comes to potential borrower’s credit standing because they need to make sure that they will be paid upon maturity of the loan.

Therefore, pay all your past due accounts before applying for a loan. Constant payment is a big plus and once the bank sees you are diligent in paying off your debt, it could approve your loan application.

4) Job and Destination Country

Working overseas and showing your capacity to pay are not sure ways to get your loan approved. Even if you have sufficient savings, lending institutions also look at the nature of your job and the country where you will be assigned. These two factors are crucial because any changes in the foreign policy or the country’s current situation could affect your employment, including salary rate.

Therefore, choose a job and destination country wisely. Do not put yourself at risk just because a country with evident political tension is offering higher pay. Consider your safety first before anything else.

5) Large Amount for Loan Request

There are two types of loan: secured, which means it has to be backed up by a collateral (car, real property, or equipment); and unsecured, which doesn’t require any security but comes with high interest rate.

Most of the time, banks and other lending institutions go for secured type of credit for protection purposes. The security you will offer will help as to how much you can loan, depending on the appraised value of your offered collateral. If the property you offer for a collateral is pegged at P500,000, don’t expect the bank to lend you P1 million.

Therefore, don’t apply for OFW loan using collateral that is appraised at lesser value than how much you want to borrow. Check your properties that you can offer as a collateral and make sure that they value more than the amount you plan to borrow. More importantly, be realistic with the loanable amount. Keep in mind that banks prefer someone who can pay them in time and would not want to go through the time and hassle of re-possessing your property.

At the end of the day, applying for OFW Loan requires strategy. Determine your need for loan, check your finances, and see if you are capable of paying. You can also check Balikbayad to see how they can assist you with your funding needs.

You know that PAG-IBIG offers Housing Loan facility to all its OFW members. Did you know that if you are a member of SSS, you can also apply for this type of facility?

Read on to learn more about SSS’ Direct Housing Loan Facility for OFWs.

Overview

The Direct Housing Loan Facility for OFWs is among the many services offered by the Social Security System. Its main goal is to support the shelter program of the government, which aims to provide low cost and socialized housing to Overseas Filipino Workers.

Who are OFWs? 

To avail of this type of loan facility, OFWs are private sector worker who is:

• Currently deployed abroad whose contract was processed through POEA or authenticated by the Embassy abroad where you are working
• Has employment contract, which is subject to renewal or deployment
• Filipino national who is currently an immigrant or a citizen of another country, but wishes to buy a property for his/her family who are still in the country.
• Overseas Filipinos living in other countries for a long time but wants to avail of housing packages when they retire or for their families.

Loan Details 

Purpose: Construction of a house or new unit, purchase of a lot and construction thereon, or purchase of an existing residential unit.

Loanable Amount: Maximum of P2 million for low-cost housing loan. For socialized housing loan, loanable amount is up to P450,000.

Terms of the Loan: SSS home loan is payable in multiples of five years but not exceeding 15 years.

Interest Rate: 8% per annum for P450,000 and below, 9% p.a. for loans above P450,000 but not exceeding P1 million; 10% p.a. if the amount is over P1 million but not exceeding P1.5 million; and 11% p.a. for loanable amount more than P1.5 million to P2 million.

Allowable Collateral: TCT/OCT/CCT issued by the Registry of Deeds in the name of the principal borrower. Consequently, the property must be free from liens and encumbrances. The said property will be secured by Real Estate Mortgage (REM), which will also be annotated on the title of the property held for security. A pre-selling property is likewise accepted as a collateral.

Insurance Coverage: This includes fire insurance, mortgage redemption insurance, and home guaranty corporation coverage, which will be paid for by the borrower.

SSS Home Loan Requirements:

1. Borrower must be a certified OFW, voluntary member of SSS with at least 36 months contribution and 24 months continuous contributions. Consequently, he/she must not be more than 60 years old at the time of application.

2. Borrower must not have a previous grant of SSS home loan or final SSS benefits.

3. Borrower must submit the following documents upon application:

• Application for Housing Loan with attached 1×1 picture of the borrower.
• Certification from POEA/DOLE/OWWA/SSS to prove that you are an overseas Filipino worker
• Certificate of Loan Eligibility, which you can get for a fee of P100
• Deed of Sale or Contract to Sell of the property you are applying for
• Appraisal Report from accredited appraising companies of Home Guaranty Corporation
• Certificate of Acceptance and Occupancy signed by the borrower in case the property is 100 percent complete
• Photocopy of Tax Declaration and Real Estate Tax receipts
• Certified true copy of the title of the property to be mortgaged
• Lot plan with vicinity map
• Blue print of the building home
• Notarized Special Power of Attorney if the filing of application is made via representative
• Tax mapping or subdivision plan
• 12 post-dated checks to cover the fees

You may submit your application at the nearest SSS cluster branch or in Housing and Business Loans Department in SSS Building in Diliman, Quezon City.

There are many reasons why you work abroad. At the end of the day, it’s about providing a better and secure life and future for your family. To achieve this, you have to put your money in the right investments, including a home you can call your own.

If OWWA has an OWWA Loan to help all Overseas Filipino Workers to put up their own business, PAG-IBIG has a Housing Loan designed specifically for every bagong bayani. 

Here’s what you should know about PAG-IBIG Home Loan eligibility, requirements, and everything in between:

Get to Know PAG-IBIG Home Loan for OFW

The Home Development Mutual Fund (HDMF) is a program of the government established to provide affordable housing loan schemes for OFWs. As a member of PAG-IBIG, you can borrow as much as P6 million, depending on your housing needs and your capacity to pay.

• Keep in mind that the PAG-IBIG home loan is obtained for the purpose of acquiring a housing property, improving an existing unit, or refinancing an existing loan. The property can be a residential area, condominium unit, or unit that calls for further construction. Consequently, you can use the funds to pay for brand-new, previously mortgaged with HDMF, or under a rent-to-own program.

OFW as an Eligible Borrower

In case you want to avail of the Home Loan of PAG-IBIG, you should be able to present the following:

• Employment Contract, with English translation if the contract is written in foreign language
• Original Employer’s Certificate of Income. In case you don’t have the original, photocopy is acceptable provided it is duly validated and certified by HDMF Information Officer assigned in the country where you work.

PAG-IBIG Home Loan Requirements

Make sure you have the following documents when applying for a Home Loan:

• PAG-IBIG Home Loan Form or Application with attached recent ID picture
• Membership Status Verification Slip (must have remitted at least 24 months contribution or pay in lumpsum if you are a new member who wants to avail of housing loan)
• Proof of Income such as employment contract, original employer’s certificate, or any other documents to prove such income as long as duly validated and certified by HDMF Information Officer assigned in the country where you work
• Photocopy of one valid ID of the borrower. A photocopy of one valid ID is likewise required on spouse, co-borrower, or Attorney-in-Fact, whichever is applicable
• Duly signed Authorization to Conduct Credit Background Investigation
• If abroad, Special Power of Attorney notarized before the date of departure or duly certified and authenticated by the Philippine Embassy or Consulate in the country where you are working
• Health Statement Form and Full Medical Examination for borrowers above 60 years old or loan amount of more than P2 million – This form is available at any PAG-IBIG Regional Branch, Members Services Support Division – Servicing Department if you are from Metro Manila, or downloadable online
• Marriage Contract, if borrower is married
• Certificate of No Marriage (CENOMAR), if you are single
• Birth Certificate or any proof of relationship if you have co-borrowers

Apart from the documentary requirements, you also have to prepare the following technical requirements:

• Certified true copy of the latest TCT/CCT by the Registry of Deeds
• Location Plan and Vicinity Map of the property
• Photocopy of Tax Declaration and latest Real Estate Tax Receipts

Depending on your loan purpose, you must also present the following requirements:

• Purchase of Lot / Residential Unit – Contract to Sell or similar agreement between the buyer and seller
• Construction of House / Home Improvement – Building plan and Specification and Bill of Materials signed by licensed architect or civil engineer
• Refinancing – Statement of Account on outstanding loan balance and indicating loan purpose, and any of the following: official receipt for the last 12 months, valid proof of payment for the last 12 months, or subsidiary ledger

PAG-IBIG Home Loan Process

Here is a step-by-step procedure on how to apply for PAG-IBIG Home Loan:

1. Attend a Loan Counselling with a PAG-IBIG Information Officer in the PAG-IBIG Office near you.

2. Fill up application forms like Housing Loan Application (HLA) and Preliminary Loan Counseling Questionnaire (PLCQ). You will also be asked to fill up a medical questionnaire if you are above 60 years old or applying for a loan amounting to P2 million above.

3. Submit the required documents and pay the non-refundable fee of P1,000

4. PAG-IBIG will review your loan application within 20 days. This period will also cover property valuation and credit investigation.

5. If approved, you will received a Notice of Approval or Letter of Guaranty. You must give any of the documents to the property seller and pay the Capital Gains Tax (CGT) at the BIR within 90 days. A Certificate of Authorizing Registration (CAR) will be released upon payment of CGT.

6. Pay for the Transfer Tax in the local government where the property is located.

7. Proceed to the Registry of Deeds (RD) to transfer the title. An updated tax declaration and Occupancy Permit will be given by the Assessor’s Office and Engineering Office, respectively. In case you are using the funds for refinancing, present the Letter of Guaranty and Loan and Mortgage Agreement to the bank where the loan was initially coursed through before going to the Registry of Deeds for annotation on the title.

8. Submit the following documents to PAG-IBIG: Original TCT in the name of the borrower and with mortgage annotation on it, Deed of Absolute Sale with stamp from RD, new tax declaration in the name of the owner, updated Real Estate Tax receipts for land and improvement, Occupancy Permit, and Assignment of Loan Proceeds (will come from PAG-IBIG).

Now that you survived the documentation and loan process, make sure you pay the monthly amortization on time. Congratulations!