We’re here to tell you about PAG IBIG loans for Overseas Filipino Workers (aside from housing loans, of course!)
When it comes to housing loans, probably the first thing that comes into your mind is the Home Development Mutual Fund (HDMF). More commonly known as PAG IBIG (Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno), this agency is the government’s answer to the call for a national savings program as well as providing affordable shelter for Filipinos.
Perhaps, when planning to buy a new home or renovate your current one, you’ve probably considered applying for a PAG IBIG housing loan–which is a good decision by the way as this government-owned housing finance agency offers affordable home loans with flexible payment schemes.
But other than housing loans, do you know that PAG IBIG fund also offers other types of loans that can cater to every Overseas Filipino Workers (OFWs) financial needs?
So, buckle up as we take a look at the PAG IBIG loans OFWs like you can easily avail!
PAG IBIG Loans for Overseas Filipino Workers
PAG IBIG Housing Loan
When it comes to loans offered by PAG IBIG fund, you are probably most familiar with this one. But as a refresher, we will be taking another look at how you can apply for a PAG IBIG housing loan.
You are just six steps away from owning your dream home through the PAG IBIG housing loan. And what’s more is that you can borrow up to six million pesos, enough to kick start your home buying journey. The maximum payment period is thirty (30) years.
PAG IBIG Housing loan eligibility
- Must be an active member with at least 24 months savings
- Not more than 65 years old at the date of the application and not more than 70 years old during loan maturity
- Has the legal capacity to acquire and encumber real property
- Has no PAG IBIG loans that were foreclosed, canceled, bought back, or voluntarily surrendered
- Payments should be updated if there is an existing PAG IBIG housing account or short term loan
PAG IBIG housing loan requirements for OFWs
OFWs wishing to avail of the PAG IBIG housing loan should submit the following documents:
- Housing loan application with recent ID photo of borrower and co borrower (if he/she has any). OFWs can go to the PAG IBIG website at https://www.pagibigfund.gov.ph/Availmentofnewloan.html to accomplish such forms.
- Proof of income- For proof of income, OFWs can submit any of the following documents:
- Employment Contract:
- Employment Contract between employee and employer; or
- POEA Standard Contract
- Notarized Certificate of Employment and Compensation (CEC)
- CEC written on the Employer/Company’s official letterhead; or
- CEC signed by employer (for household staff and similarly situated employees) supported by a photocopy of the employer’s ID or passport
- Income Tax Return filed with Host Country/Government
- NOTE: If documents are in foreign language/s, English translation is required.
- A back-to-back photocopy of valid ID of the principal borrower and spouse, co borrower and spouse, seller and spouse, and, the Developer’s Authorized Representative and Attorney-In-Fact, (if applicable).
- Transfer Certificate of Title (TCT) (latest title, Certified True Copy). If you are applying for a condominium unit, a TCT of the land and Condominium Certificate of Title (CCT) (Certified True Copy) are required.
- Updated tax declaration of the house and lot and photocopies of updated real estate tax receipts
- Vicinity map or sketch map leading to the property’s location
After you have successfully acquired all the necessary documents, you can head on to the nearest PAG IBIG branch or to their main office where you will be assisted by a PAG IBIG personnel and also pay a nonrefundable processing fee of PHP 1,000.
Now, we’re reminding you that you will be needing a lot of patience because it will take more or less 20 days for PAG IBIG to process your application.
PAG IBIG Home Equity Appreciation Loan (HEAL)
Through the PAG IBIG Home Equity Appreciation Loan (HEAL), OFWs can apply for a loan based on the net value of their mortgaged property to fund their needs. This loan is applicable to borrowers who had maintained a good standing and paid their loan and mortgage agreement on time.
PAG IBIG HEAL eligibility:
- Must be an active member with at least one monthly membership savings within the last six months
- Not more than 65 years old at the date of the application and not more than 70 years old during loan maturity
- Has the legal capacity to acquire and encumber real property
- Has an existing PAG IBIG housing loan that has been approved or taken out at least five years from the date of application
- The existing housing loan/installment accounts should be paid diligently within twelve months immediately before the date of application
- Passed the satisfactory background check and business/employment and credit background check conducted by PAG IBIG fund
- Has no outstanding PAG IBIG short term loan (STL) in arrears during the time of application
To further check if you are eligible for the PAG IBIG HEAL, simply go to Virtual PAG IBIG, click Apply for and Manage Loans and type in your PAG IBIG Housing account number (HAN) and other needed information.
If PAG IBIG deems that you are qualified, you will be required to upload documents which are as follows:
PAG IBIG Heal Requirements for OFWs:
- Duly accomplished PAG IBIG HEAL application form.
- Duly accomplished PAG IBIG HEAL application form for co borrowers.
- Proof of income- For proof of income, OFWs can submit any of the following documents:
- Employment Contract:
- Employment Contract between employee and employer; or
- POEA Standard Contract
- Notarized Certificate of Employment and Compensation (CEC)
- CEC written on the Employer/Company’s official letterhead; or
- CEC signed by employer (for household staff and similarly situated employees) supported by a photocopy of the employer’s ID or passport
- Income Tax Return filed with Host Country/Government
- NOTE: If documents are in foreign language/s, English translation is required.
- One Valid ID
- Updated real estate tax receipts for the quarter, immediately prior to the date of application
- Health statement form which can also be downloaded from the PAG IBIG website
- For borrowers who need to state their consent for the new HEAL application, they should submit a Conformity Form for New/Subsequent Housing Availment which is also downloadable from the website.
After uploading the necessary documents, you can now pay the processing fee through the Virtual PAG IBIG or accredited collecting partners.
You will get a notification via text or email once your Notice of Approval and loan documents are all available in the Virtual PAG IBIG portal. This also means that your application is deemed complete by PAG IBIG.
And the last step, download and print your post approval documents and submit them to the nearest designated PAG IBIG office. Don’t forget to sign and notarize your post approval documents.
If you wish to skip the online process, you can also opt to head on to the nearest PAG IBIG branch in your area.
Housing Loan for Minimum Wage Earners
Though primarily intended for locally-employed minimum wage or low-income earners, OFWs can also avail of this loan. This loan offers as low as PHP 2,445.30 monthly payment within a 30-year term.
The OFW eligibility and requirements for the housing loan for minimum wage earners are the same as applying with the housing loan requirements stated above.
PAG IBIG Multipurpose Loan
OFWs who are in need of quick or emergency cash apply for the PAG IBIG Multipurpose Loan. Part of the Short Term Loan program, it is designed to provide immediate financial assistance to qualified members.
Members can borrow up to 80% of their PAG IBIG regular savings, with a processing term of only two days.
The procedure is as easy as submitting a duly accomplished Multi-purpose Loan application form, together with a valid ID, and your proof of income. Upon confirmation of your application, get your STL Acknowledgement Receipt and wait for the date to claim your loan proceeds.
A photocopy of the payroll account or disbursement card will be required for loan proceeds through the payroll account or disbursement card. If the application was done through the employer, the employer is the one responsible for the acquisition and certification of the documents.
Calamity Loan
Similar to the MPL, the PAG IBIG calamity loan provides immediate financial assistance who are affected by natural disasters or those who reside in areas under a state of calamity. This loan is payable within 24 or 36 months, has a deferred first payment, and has an annual interest of 5.95%.
Submit your Multi-purpose Loan application form, together with a valid ID, and your proof of income, get your STL Acknowledgement Receipt and wait for the release of your loan proceeds.
If the MPL or Calamity Loan application were submitted via a representative, an authorization letter together with a valid ID of both parties is required, aside from the primary documents.
Worthwhile Membership for Overseas Filipino Workers
In lieu of the Republic Act No. 9679, our OFWs have been covered by the PAG IBIG since 2009. Through PAG IBIG’s partnership with the Philippine Overseas Employment Administration (POEA), payment contributions are made easier for our modern day heroes.
OFWs were also able to enjoy savings with dividend earnings, short term cash loans, and affordable housing loans through this joint venture.
By knowing all the available loans OFWs and migrant workers can apply for, they are sure that their PAG IBIG membership won’t be put to waste. We all know how big of an impact our OFWs to the socioeconomic growth of the country because of their remittances alone. Through these services, our OFWs are rest assured that have something to lean on during times of need or if the time comes when they decide to purchase a new property. So, the next time you are thinking of applying for a loan, don’t forget to check out this list of PAG IBIG loans for Overseas Filipino Workers.
Looking for an affordable property? Contact us today
A lot of Filipinos dream of owning their first apartment or house and lot. With today’s booming real estate opportunities, there are so many options to choose from.
Here at Vistaland International, we have a roster of affordable property listings from several locations across the country. Whether you’re looking for a place to live in Manila, Cebu, Davao and etc, we’ve got you covered. So contact our real estate agents today!
Vista Land International was primarily created to bring OFW closer to their dream of finally acquiring a home in the Philippines. And with the rising cost of living in the country, OFWs and their families are looking for ways to earn extra cash flow to support their daily needs. Luckily, you can also join the global network of Vista Land International as a real estate professional and earn a commission!
