Filipinos working overseas (OFWs) who wish to invest in real estate properties for their families in the Philippines can apply for the Pag IBIG housing loan. This can be done either online through the Pag IBIG website or in person at any Pag IBIG Desk Office located at selected Philippine Embassies abroad. How To Apply for Pag IBIG Housing Loan: A Definitive Guide for OFWs The application process is similar to applying in the Philippines, with only a few minor differences.
Step 1: Know your purpose for availing of a Pag IBIG housing loan
“Pag IBIG has defined the types of real estate investments or projects that are eligible for their housing loan. It is important to familiarize yourself with these qualifications before submitting an application.”
Step 2: Use the Pag IBIG housing loan calculator to estimate how much you can borrow based on your income, the value of the property, etc.
The maximum loanable amount is Php 6 million.
Step 3: Pass the eligibility requirements for the Pag IBIG housing loan
According to the Pag IBIG Fund, you can avail of the loan if you are:
To be eligible for a Pag-IBIG Fund housing loan, an applicant must meet the following requirements:
- Must be an active Pag-IBIG Fund member with a minimum of 24 months’ worth of contributions at the time of application. For new members or those who have contributed for less than 2 years, they can complete the required contributions by making a lump sum payment. Pag-IBIG has partnered with POEA and DOLE to ensure all OFWs leaving/returning to the Philippines become members or have updated memberships.
- Must not be more than 65 years old at the time of loan application and not more than 70 years old at loan maturity.
- Must have the legal capacity to acquire a property.
- Must have passed the background checks conducted by the Pag-IBIG Fund, which includes credit, employment, and business checks, among others.
- Must have no outstanding Pag-IBIG multi-purpose or calamity loan either as a principal borrower or co-borrower.
- Must not have had a previous Pag-IBIG housing loan that ended up with the borrower’s property being foreclosed, brought back to default, canceled, or surrendered (dación en pago).
If the applicant has an existing Pag-IBIG housing loan, either as a principal borrower or co-borrower, it must be updated.
Step 4: Gather and complete all documentary requirements
To apply for a housing loan from Pag IBIG, you need to submit various documents including a non-refundable processing fee of Php 1,000 and an appraisal fee of Php 2,000. You also need to provide a proof of your membership status, which can be shown by submitting a slip indicating your contributions for at least 2 years/24 months or paying the same amount of contributions in a lump sum if you’re a new member. Additionally, you must fill out a Housing Loan Application Form with a recent ID photo of the borrower or co-borrower, along with a signed Authorization to Conduct Credit Background Investigation. Proof of income is also required, which can be shown by submitting an Employment Contract, Certificate of Employment and Compensation (CEC), or Income Tax Return filed with the OFW’s host country or government.
You also need to provide photocopies of a valid ID of the borrower and spouse, co-borrower and spouse, seller and spouse, owner of the title (for accommodation mortgage), and developer’s authorized representative/Attorney-in-Fact. You also need to present the latest Certified True Copy of the Transfer Certificate of Title (TCT), or TCT of the land, and a Certified True Copy of the Condominium Certificate of Title (CCT) if you’re purchasing a condo.
For OFWs over 60 years old or those 60 and younger with loan amounts exceeding Php 2 million, you need to provide a duly accomplished Health Statement Form along with a copy of the medical examination result. You also need to submit photocopies of the updated Tax Declaration (house and lot) and Real Estate Tax Receipt, as well as a vicinity map or sketch of the property.
If you’re abroad, you need to provide a Special Power of Attorney notarized either by a Philippine Consular Officer or a notary in the country where you’re working, which should be authenticated by the Philippine Consulate. Any or a combination of the following documents can also be submitted: Valid OWWA Membership Certificate; Payslip indicating income received and the period covered; Professional License issued by Host Country/Government; Residence card/permit; Overseas Employment Certificate; Passport with appropriate visa (Working Visa); Bank remittance record.
For other requirements specific to the type or number of properties you’re planning to purchase/invest in, please refer to this list.
Step 5: File your housing loan application to Pag IBIG
If you are in a foreign country, someone you know such as a relative or friend can submit your application form and required documents on your behalf, as long as you give them a Special Power of Attorney.
Step 6: Wait for the approval of your housing loan
Your application will take around 17 days to be approved, and after that, there will be an additional 3-day wait for the check or loan proceeds to be released once you have met all compliance requirements. To learn more about the steps you need to take after approval, please follow the link provided.
Step 7: Claim the check/loan proceeds at Pag IBIG
“If you are out of the country, someone can receive the document on your behalf as long as they provide a notarized Special Power of Attorney (which you have executed) and two valid IDs each for both you and the representative.”