Pag-Ibig Overseas Program Housing Loan for OFW – It is practical nowadays for every worker to save at least ten percent of salaries. It is also important that every worker could backup money ready in times of emergencies and provide if they need something in the future.
Pag-Ibig Overseas Program Housing Loan is a response of this initiative. Overseas Filipino Workers (OFWs) can also save some part of their salaries for future needs.
Pag-Ibig Overseas Program Housing Loan for OFW – Photo credits to the rightful owner There are government agencies which aim to provide those OFWs as well as immigrants, permanent residents and seafarers the opportunity to save for future and can also avail of housing loans of as much as P 3,000,000.00. One of these is the Pag-IBIG Overseas Program (POP).
What is POP?
Pag-IBIG is a government agency that allows its members to avail loans for the purpose of acquiring a house. And one of its programs is the POP which is open to all OFWs with valid visas or employment contracts. Similarly, it shall be opened to Filipino immigrants and to Filipinos naturalized in other countries.
How to Sign Up for POP?
To register, accomplish and submit the Member’s Data Form (MDF), together with the required membership contributions. Also, attach a photocopy of the passport or contract, and a 1×1 ID photo.
Register in any of the Pag-IBIG Fund Offices nationwide, designatedPOP offices broad or accredited/authorized Pag-IBIG coordinator.
Pay the Required Contribution!
The contribution rate for all mandatory members, including OFWs will be as follows:
Over 1,500 = 2% (employee share) 2% (employer counterpart)
ü Dividend Rate
Variable dividends from surplus earnings of the Fund shall be distributed annually to all POP
members, to be credited to their Total Accumulated Values (TAV).
ü The Membership Term/Maturity
The accumulated savings under the program may only be withdrawn at the end of five (5), ten (10), fifteen (15), or twenty (20) years at the option of the member upon membership registration. Withdrawal of contributions shall be in Philippine peso. Contributions in foreign denomination shall be converted to Philippine peso based on the prevailing US dollar exchange rate as of payment date.
ü Loan Availability
POP members may avail themselves of the housing loan benefit, subject to the provisions of the existing Consolidated Guidelines of the Pag-IBIG Housing Loan Program, through their immediate family members with the execution of a Special Power of Attorney (SPA), duly certified by the Philippine embassy or consulate in the country of their workplace. They can also avail of the Multi-Purpose Loan (MPL), subject to the existing guidelines of the MPL Program
Well if you have more questions about the contribution rate and related terms in the above, see the list of POP DIRECTORY to contact the Pag-IBIG Fund officer.
Qualifications for applying a housing loan
S/he must be an active member with at least 24 monthly contributions at the time of loan application. The applicant must be insurable, is not more than 65 years old at the time of application, and not over 70 years old at loan maturity and has the legal capacity to acquire and encumber real property. S/he has passed satisfactory background /credit and payment/business checks by the developer and the Fund and has no outstanding PAG-IBIG housing loan, either as principal or co-borrower, has no Pag-IBIG housing loan that was foreclosed, cancelled, bought back or subjected to dacion en pago and has no outstanding Pag-IBIG multi-purpose loan in arrears at the time of loan application.
Qualified Pag-IBIG member may avail an additional housing loan
A qualified Pag-IBIG member who has an existing housing loan may avail himself of an additional housing loan for house construction or improvement of a house constructed on a lot purchased through a Pag-IBIG housing loan; or for home improvement.
Justifiable Housing Loan Purposes
Overseas Filipino – OFW Guide
The Pag-IBIG Housing Loan may be used to finance any or a combination of the following:
– Purchase of a fully developed lot not more than 1,000 square meters, located within a residential area
– Purchase of a lot and construction of a residential unit thereon
– Purchase of a residential house and lot, townhouse or condominium unit
– Construction or completion of a housing unit on a lot owned by the member
– Home improvement
– Refinancing of an existing mortgage loan with an institution acceptable to the Fund
– Combination of loan purposes
The Duration of Payment
Loan shall be repaid at a maximum term
The loan shall be repaid at a maximum term of 30 years, and should not exceed the difference between 70 years and the present age of the principal borrower. The housing loan should be fully paid when the borrower reaches the age of 70 years.
What happens if member’s savings withdrawn?
A member or his legal heirs ( in case of death ) will be entitled to claim his total savings from the Fund, less any and all pending obligations the member may have with the Fund, upon termination of membership. Once the member terminates his Pag-IBIG membership, the Fund shall automatically apply his total savings to the outstanding housing loan, regardless of the status of the account. To have a clear understanding about the POP Program, don’t hesitate to contact the assigned Pag-IBIG officer in your location. Every Filipino knows the vernacular saying “May may isinuksok, may may madadampot sa oras ng kagipitan”. According to Senator Manny Villar, “Mas mabuti nang magdildil ng asin basta may sariling bahay”. Truly, this program is very helpful to those OFWs who wished to have a harmonious house when they want to return back in the country. It is also an investment for them so that their hardships and sacrifices won’t be useless.