LandBank’s Home Loan Program For OFWs, Government, And The Private Sector Workers

If it’s home loan we’re talking about, the first thing that comes to mind is Pag-IBIG. If this is the first time you’re hearing this, Pag-IBIG is a government-controlled institution that aims to aid workers have affordable shelters for them and their families. Since it’s their main role to help Filipinos, they are the “go-to” organization when it comes to housing. What most of us forget to consider is that they’re not the only institution that accommodates these types of requests. Banks also approve housing loans as well, if you did not know that. The LandBank of the Philippines, is one of the banks that have better loan programs.

Overseas Filipino Workers (OFWs), Government employees, and people who work in the private sector can apply for LandBank’s Home Loan.

Although LandBank’s home loan program is open to those eligible, factors are different from those working outside the country and those who are employed here. For OFWs, they have the Bahay Para sa Bagong Bayani Program (3B Program). For government, businessmen, and private sector workers however, they have the Easy Access to Shelter You (EASY) Home Loan Program/Gintong Pabahay Program.

Does LandBank’s Home Loan program differ? If they are, what are the differences?

To be straightforward, there is little difference between the two. The reason why LandBank has this program is that the HDMF loan program is a bit hassle for OFWs given the fact that they’re away. However, in order for me to successfully portray what the differences are, let me give you everything you need to know about LandBank’s home loan program which is;

(1) Easy Access to Shelter You (EASY)

Let’s start with the basics first; let’s find out who are eligible in getting the EASY home loan, the borrowing capacity, and the purpose of the loan:

Eligible borrowers for the EASY home loan

• Must be a Filipino citizen;
• Should have a reliable source of income either from employment and/or businesses/investments;
• Age should be 21 years old but not more than 65 years old upon loan maturity; and
• No adverse findings in credit and background investigations

The borrowing capacity of borrowers

• Should be at least 30% of gross monthly income of borrower and his/her spouse (for private applicants)
• Government employees are required of the monthly net take home pay; shall be observed per current General Appropriations Act (GAA).

Loan purpose

• To purchase a residential lot, house and lot, townhouse, or a condominium unit;
• Construction or renovation of a residential unit or residential/commercial apartment; and
• Refinancing of existing housing loan with other financing firms or developers’ in-house financing-provided account is in “current status.“

The amount of loan

The loan amount should be minimum of Php500, 000.00 and shall be computed based on the borrowing capacity of the client. However, it should not be more than the value of the collateral.

For Private Applicants – Borrowing capacity of the individual borrower and his/her spouse (if applicable) shall be based on the 30% of the applied Gross Monthly Income.

For Government Employees – The borrowing capacity on the other hand shall be based on the amount as required by GAA, after the housing loan amortization.

Term and value of loan

Value should be 70% of appraised value for below Php3.5 million; 60% of appraised value for loans above Php3.5 million. The terms would be a maximum of 20 years considering the combined age of principal borrower and loan not exceed 65. 

Read: OFW Auto Loan For Saudi Arabia And Hong Kong Workers

Collateral, and loan security

The loan shall be secured by residential/commercial real estate properties acceptable to the LandBank of the Philippines; REM.

What are the fees, charges, and documentary requirements a borrower needs to comply to?

• Application/Filing Fee  of  Php2, 000.00  (non-refundable)
• Appraisal and Inspection Fees per CPI no. 2014-003 dated 12 February 2014;
• Handling Fee of 1/10 of 1% based on amount approved
• Commitment Fee of 50% of the unavailed amount
• Notarial Fee: Minimum of Php500.00
• Documentary Stamps Tax per PN
• BIR & Registry of Deeds Registration Fees
• Insurance Premium on MRI & Fire

The requirements for employed borrowers:

• Their Personal Information Data Sheet;
• The latest pay slip indicating net take home pay of borrower;
• Certificate of Employment (CoE);
• Two (2) of the following latest Billing Statements: (Electric Bill, Phone Bill, Water Bill, Credit Card Bill, TV Subscription Bill)

Individuals who own their business/with established source of income

• Biodata;
• Business Registration and Licenses; and
• BIR-stamped and certified financial statements and Income Tax Returns for the last three years

(2) Bahay para sa Bagong Bayani (3B Program)

Eligible borrowers for the 3B Program

The same as the eligibility of EASY Home Loan borrowers but of course, they need to have a live contract from a reputable company overseas.

The borrowing capacity of borrowers

• Should be at least 30% of gross monthly income of borrower spouse (if applicable)

Loan purpose

• To purchase a residential lot, house and lot, townhouse, or a condominium unit;
• Construction or renovation of a residential unit or residential/commercial apartment; and
• Refinancing of existing housing loan with other financing firms or developers’ in-house financing-provided account is in “current status.“
• Assumption by an OFW of an existing housing loan by another borrower either with LandBank or another creditor

The amount of loan

For the OFW program, it would be the lowest of the paying capacity of the overseas worker or loan value of collateral with loan value of 80% given that:

• The financing will be for the principal residence of the OFW; and
• Property title should be under the name of the OFW

Term and value of loan

Loan value would be 80% of the appraised value. Tenor is:

• 15 years for OFW without co-borrower
• 20 years for OFW with co-borrower

Collateral, and loan security

• The primary collateral would be the object of financing or separate prime property (if warranted); and
• Others that may be subject to approval in addition to the object of financing would be deposit with hold-out

Interest Rates 

• The variable in the formula is based on the posted rates at the time of availing;
• Subject to yearly repricing
• Fixed: Based on posted rates at the time of availment (2-3 years, 4-5 years, 6-7 years, 8-10 years, 11-15 years, 16-20 years)
• For Socialized Housing: 1% below the posted EHL rates at the time of availment subject to annual repricing

What are the fees, charges, and documentary requirements an OFW borrower needs to comply to?

The fees would be the same as the fees of the EHL borrowers. The documentary requirements however are quite different:

For Credit Analysis:

• Duly accomplished loan application form with 1 x 1 ID photo;
• Copy of employment contract (CoE)

For Appraisal:

• A photocopy of TCT/CCT;
• Original and photocopy of Tax Declaration (land improvements);
• Lot Plan;
• Latest Real Estate Tax Receipts;
• Certified by a Geodetic Engineer; and
• Location and map of the vicinity

So are you interested in getting LandBank’s home loan programs? Whether you’re working for the government, the private sector, or as an OFW, you can apply for a housing loan through LandBank. This is one example on how our country is striving to aid our modern-day heroes in putting food in their families’ tables.

Read Also: Opening A LandBank Account With Php100 Initial Deposit For OFWs

Source: LandBank