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OFW Loaning

Posted by yogi2011 on September 19, 2011 at 8:55 AM Comments comments (0)

If you are an OFW, please read carefully the entire content of this article as you may gather some bits of important information that is particularly applicable to your situation.

Question #1 : Is it still okay to continue Pag-ibig rather than opt for POP(Pag-IBIG Overseas Program) which is specialized for OFWs?

Answer to Q#1: The Pag-IBIG Overseas Program (POP) has already been stalled and replaced with the regular Pag-IBIG Membership which is sometimes referred to as Pag-IBIG I. So, if you have not been a member of POP, that’s okay. You can simply continue with your former Pag-IBIG I Membership.

More Detailed Answer: Yes it’s true that since the Pag-IBIG Law of 2009 took effect, all OFWs are already required to become members of the Pag-IBIG Fund. For those who have returned to the country and have visited the office of the POEA before going back to work again abroad experienced this already. Just to make it clear, this is Pag-IBIG I, or the regular Pag-IBIG membership.

The Pag-IBIG Overseas Program was not at all abandoned. It’s just that, Pag-IBIG is not accepting new enrolees to the program anymore. But for those who are already contributors, you can do so until that reaches its maturity period and then be ready to cash out all your contributions.


Question #2: If yes, can I pay every 6 or 12 months since I go home once to twice a year to the Philippines anyway?

Answer to Q#2: Yes you can do that — meaning make advanced payments.

A Better Way To Do It: Have someone whom you can trust with your money pay for your contribution over the counter at the Pag-IBIG Branch of your choice on a monthly basis. Or, you may also issue a set of post dated checks.


Question #3: Apart from not giving my contributions for 3 years, can I still presently use my existing contributions which I had with my former employer to loan for housing to date?

Answer to Q#3: Please be aware that you need to be an actively contributing member to qualify for a housing loan.

Related Answer: Your past contributions will certainly count in terms of establishing your track record with the Pag-IBIG Fund. But remember, it’s not just the contributions that will ensure your loan approval. The most important factor really is your capacity to pay.

The Pag-IBIG Housing Loan Process

Posted by yogi2011 on September 19, 2011 at 8:30 AM Comments comments (0)

This can be filed as one of the frequently asked questions: “How can I apply for a Pag-IBIG Housing Loan?”

This article addresses that question in a very straight-forward and easy-to-understand manner.

So without further ado, here are the steps to take.

Step #1: Attend The Loan Orientation.

Officially, it’s called Loan Counselling Session. It’s conducted at any Pag-IBIG Office all over the Philippines. Check your nearest Pag-IBIG Fund office to check their scheduled Loan Counselling Session.

It’s conducted at any Pag-IBIG Office all over the Philippines. Check your nearest Pag-IBIG Fund office to check their scheduled Loan Counselling Session.

Step #2: Fill Up Some Documents. Normally, you will be asked to accomplish the following documents:

       1.) Preliminary Counselling Questionnaire – Some basic questions that are easy to answer.

       2.) Membership Status Verification Slip (MSVS) – This will be used by the assigned staff to check your records

             and contributions to the Pag-IBIG Fund.

 

      3.) Housing Loan Application (HLA) – This is the official document where you signify your intention of getting a loan.

If you are qualified for a loan, you will be given the Checklist of Requirements (COR) depending on the purpose of your housing loan. Fill-up the HLA only after knowing your status. (Read Step 3)

Step #3: Submit HLA And Other Required Documents. This will probably take a couple of days to comply. But once all of the documents in the requirement checklist are ready, submit them together with the Loan Application Form. You will be asked to pay the processing fee, which is non-refundable.

Step #4 Wait for The Notice of Loan Approval or Letter of Guaranty. Or if you can’t wait on your mail box, phone them to follow-up the status of your loan application.

Step #5. Sign Loan Documents. There are some and will be provided at the Pag-IBIG Fund office.

Step #6: Visit the Bureau of Internal Revenue and Registry of Deeds.

                - Pay for the documentary stamps and capital gains tax at the BIR.

                - Have the Registry of Deeds put an annotation of mortgage on the Land Title

Step #7. Get Loan Proceeds. But you have to show Pag-IBIG Fund the following documents:

                - Original Transfer Certificate of Title (TCT) in the name of the applicant with annotated mortgage

                - Deed of Absolute Sale with original stamp from the Registry of Deeds

                - New Tax Declaration in the name of the applicant

                - Updated Real Estate Tax Receipt (for house and lot, if applicable)

                - Occupancy Permit (secured from LGU Engineering Office, if applicable)

                - Assignment of Loan Proceeds

That’s it for the Pag-IBIG Housing Loan process — only seven steps.

Most likely, you will also be asked to make an advanced payment on the first monthly amortization immediately following the loan release. So have your cash or check ready.

Further Note: If you are buying a property from a real estate developer, this whole process would be easier. All that are needed is for you to follow Steps 1 to 3. Ask your agent or broker if he/she can assist on the housing loan application most often you will be extended an assistance.  

5 Great Tips For The First Time Pag-IBIG Home Buyers

Posted by yogi2011 on September 19, 2011 at 8:10 AM Comments comments (0)

This article is intended for the first-time home buyer who wanted to buy a house using Pag-IBIG Financing.

Maybe you are still single and you already wanted to get a house before getting married. (Well, this was the route that I followed.) Or, maybe you are newly wed and you decided that you want to live separately from your parents. Believe me, there’s no substitute to the feeling that you are living on your own home.

A Pag-IBIG starter home — your first home — may not be the most impressive home in town. That’s okay. Forget about the Joneses. Like your puppy love, don’t ever think that it will become your dream home. Rather, treat it as a nest egg that allows you to slowly build your investment (hedge against inflation) while literally having a roof over your head.

Buying your first home through Pag-IBIG is so easy if you take note of the following tips offered here.

Tip #1: Work With Your Real Estate Professional

By real estate professional, in this context, I’m referring to the real estate broker or agent who is directly selling the house.

You may think that getting the assistance of a real estate agent will make the property more expensive. Whoever told you that must be very ignorant of the whole process.

Here’s what you should know: The real estate professional can’t change the selling price of the property that is owned by the Developer. That is, they can’t markup the price nor can they offer a discount. The selling price and discounts are completely dictated by the Developer’s Marketing Team and the agent can never, ever change that price.

Using a real estate professional right from the start saves you from a lot of headaches associated with the home purchase. For one, the guy is a good source of information such as the following:

1.) The project

2.) The property

3.) The financing schemes

4.) Special promotions and discounts

5.) The materials used,

6.) The move-in process

And if you are using Pag-IBIG Financing, your real estate agent should be able to help you cut through the bureaucracy in the Office.


Tip #2 : Buy A New House

Avoid foreclosure properties or properties that are for assume. Most of these properties are inherently problematic. You don’t want to find yourself catching someone else’s problem, do you?

Many foreclosed properties are so cheap you are tempted to jump on the deal immediately. Not so fast. This may be one of those cases where cheap could actually turn out to be very expensive.

As much as possible, make sure you are the first owner. Of course, as time goes, newer homes will become harder to find. If that’s the case, make sure that the Land Title is clean.


Tip #3 : Buy From A Legitimate Real Estate Developer

Never, ever deal with a fly-by-night real estate developer. But the crooks have a way of putting on the mask in such a way that you can’t detect the devil’s intentions. Here’s where common sense becomes a useful tool at your disposal.

At the very least, a legitimate Real Estate Developer:

1.) Has complete Business Permits and Licenses to operate in that line of business.

2.) Issues an Official Receipt from the Bureau of Internal Revenue.


Some good points to keep in mind:

1.) Check the track record of the Developer – especially its past projects.

2.) Make sure they are accredited by the Pag-IBIG Fund. (only if you intend to use Pag-IBIG Loan)

3.) Check the License To Sell and Development Permit – they should have both.


Tip #4 : Make Sure You Have Your Finances In Order

Here’s a handy checklist:

1.) You are currently an active Pag-IBIG member with at least 24 months contributions

2.) Your employment history is impressive

3.) You have enough salary/income to cover the monthly amortization


Tip #5 : Save Enough For The Down Payment

The greatest hurdle most real estates buyer ever faced is coming up with the down payment. Many are surprised when they find they don’t have enough cash to cover the outright cash payment required of them.

The down payment, sometimes called equity, is usually 10% to 30% of the selling price. And almost always, it is to be paid one-time about one month after placing the Reservation Fee. So one of the first problems you should think about is the amount of cash you need to raise for the down payment.

Down Payment Tip: Ask your real estate agent if you can defer the payment of the down payment to, say, 12 months. This should be easier on your pocket.

Happy Investing Guys!


Real Estate Bank Financing

Posted by yogi2011 on September 19, 2011 at 6:30 AM Comments comments (0)

Banks offer a variety of mortage loans and products. Getting a loan through a bank is the most common method of financing properties but not all investors qualify. If you have steady income that you can prove (W-2 forms from your employer), have a good credit score (680 or higher), and have a down payment (20% or more), you have the greatest chances of being approved for a loan through a conventional bank when you are investing in real estate.

 

Fixed: Both the interest rate and the monthly payment are fixed.

Flexible rate: Both the interest rate and payment are flexible and change according to market prices and situation.

Interest only: Borrower pays only the interest on the loan for a number of years and during that time none of the principal is paid off.

Balloon mortgage: Both the interest rate and the monthly payment are fixed for a certain length of time, but at the end of the short-term loan, a much larger "balloon" payment is due for the balance.

Assumable mortgage: Both fixed and flexible rate mortgages can be assumable. A borrower simply takes over someone's else's payments and becomes the new owner. The original owner gives up their ownership of a property without the new borrower taking out their own new loan.



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