In this blog let us discuss whether or not a former Filipino can buy a property through a housing loan in the Philippines. What are the options?
In our previous blog, we said that former Filipinos or natural-born Filipinos can buy and own properties in the Philippines. However, they are subject to the limits as prescribed by PB 185 and RA 1879 as follows:
For Residential Use - 1,000 sqm for urban land and 1 hectare for rural land
For Investment Use - 5,000 sqm for urban land and 3 hectares for rural land
I checked a local bank (BDO) and it has a home loan program for former Filipinos. Below are the bank requirements:
At least 21 years old but not exceeding 70 years old at the end of the loan term
Filipino Citizens or Foreign Nationals
Minimum gross income of P50,000/month or its equivalent in US Dollars
With a stable source of income from employment or business
A broker said that he approached at least two banks that refused to cater a housing loan for former Filipinos. A bank officer, he said, referred him to the Bangko Sentral ng Pilipinas (BSP) circular prohibiting local banks to lend money to former Filipinos. I checked REPUBLIC ACT 8791 or "The General Banking Law of 2000" particularly Chapter IV on Deposits, Loans, and Other Operations and I cannot find any prescription prohibiting the bank from lending money to a former Filipino citizen. I also checked “2016 Revised Implementing Rules and Regulations of Republic Act No. 9160, as Amended” but no prescription prohibiting the bank from lending money to a former Filipino citizen.
Aside from BDO allowing foreign nationals to get a housing loan, I found PNB's Own a Philippine Home Loan that allows Filipinos and non-Filipinos residing and working in the United States to borrow for housing loans in the Philippines.
"Natural-born Filipinos residing and working in the U.S who have lost their Filipino citizenship (limited to the purchase of up to a maximum lot area of 1,000 sqm only)." The maximum limit of lot area of 1,000 sqm in urban area per BP 185 which I discussed in the previous blog.
How about former Filipino residing in other countries? We can ask the bank for their offerings.
PNB's Own a Philippine Home Loan or OPHL.
Own a Philippine Home Loan or OPHL, is a financing program unique to PNB, that "allows Filipinos and non-Filipinos residing and working in the United States an easy way to obtain a bank financing of residential properties in the Philippines."
OPHL is the most convenient and secured home loan with:
NO ATTORNEY-IN-FACT
NO REMITTANCE CHARGES
NO FOREIGN EXCHANGE RATE RISK
LOAN BOOKED IN USD
I take a screen grab of the features of this OPHL program of the PNB for your perusal.
As we said, BDO offers also home loans for former Filipinos. It appears that other commercial banks can also cater to former Filipinos for the housing loans.
The Philippine Consulate General in San Francisco, USA, in its update reports of Pag-IBIG Home Development Mutual Fund states:
The Pag-IBIG Membership Program for Filipinos Abroad aims to provide Filipinos who are working and living abroad the opportunity to save and avail of Pag-IBIG's housing loan program. OFWs, Filipino immigrants and even kababayans who are permanent residents or naturalized citizens of foreign countries may register as Pag-IBIG members. (Emphasis added)
The eligibility for Pag-Ibig Membership is silent about it. Here are the eligibility requirements:
Active member with at least 24 months of savings
Not more than 65 years old at the date of loan application and is not more than 70 years old at the date of loan maturity
Legal capacity to acquire and encumber real property
No Pag-IBIG housing loan was foreclosed, canceled, bought back, or voluntarily surrendered
If with an existing Pag-IBIG Housing account or Short-Term Loan (STL), payments must be updated
There is no "must be a Filipino citizen" requirement. However, one of the grounds for the termination of membership is "Permanent departure from the country".
This refers to the mandatory membership of Filipino workers, here and abroad. However, a former Filipino may join the Pag-Ibig Fund as a voluntary member for the purpose of buying a property in the Philippines. Section 4c, Rule V of the Implementing Rules and Regulations of Republic Act No. 9679 states: For "Voluntary members, coverage shall commence on the actual date of registration." I will verify this issue with Pag-Ibig Fund. This discussion is for educational purposes only. Consult your lawyer for your specific case. If you have any questions regarding the topic, please contact us.
If you are planning to buy a residential lot, house-and-lot, or condo unit, contact us at 0920 207 6284 or email cebuhousefinder@yahoo.com for FREE assistance.