Can Former Filipinos Apply for Housing Loan in the Philippines?

In this blog, let’s explore how former Filipinos or natural-born Filipinos who are naturalized citizens in foreign countries can make their dream of owning property in the Philippines a reality with a housing loan. This guide will help you turn your dreams into reality, giving you the confidence to invest in your home country.

In our previous blog, we said that former Filipinos or natural-born Filipinos who are naturalized citizens in foreign countries 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:

1. For Residential Use - 1,000 sqm for urban land and 1 hectare for rural land

2. For Investment Use - 5,000 sqm for urban land and 3 hectares for rural land

Bank Requirements

To secure a home loan with BDO, you need to meet specific requirements. Meeting these criteria is not just about numbers—it’s about making your dream of owning a property in the Philippines come true. Imagine the joy of investing in your home country and the comfort of having a place to call your own. For personalized guidance, visit BDO’s official website or contact their customer service.

I checked with a local bank (BDO), which offers a home loan program for former Filipinos. Here are the requirements:

• At least 21 years old but not older than 70 years old at the end of the loan term.

• Filipino citizens or foreign nationals.

• Minimum gross income of PHP 50,000/month (or its equivalent in US Dollars).

• A stable source of income from employment or business.
  

A broker mentioned that two banks refused to offer housing loans to former Filipinos. He also said a bank officer referred him to a BSP circular that supposedly prohibits local banks from lending to former Filipinos.

I reviewed REPUBLIC ACT 8791, known as "The General Banking Law of 2000," specifically Chapter IV on Deposits, Loans, and Other Operations, and found no rule against lending to former Filipinos.

I also reviewed the “2016 Revised Implementing Rules and Regulations of Republic Act No. 9160, as Amended” and found no such prohibition.

Besides BDO, which allows foreign nationals to get a housing loan, I discovered PNB's Own a Philippine Home Loan. This program allows both Filipinos and non-Filipinos residing and working in the U.S. to borrow for housing in the Philippines.

PNB's Own a Philippine Home Loan (OPHL) is convenient and secure, with no attorney-in-fact, no remittance charges, no foreign exchange rate risk, and loans booked in USD.

For more details, I’ve included a screenshot of the OPHL program’s features.

How About Pag-IBIG Housing Loan?

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)

Eligibility requirements for Pag-IBIG membership include:

• Active membership with at least 24 months of savings.

• Not older than 65 years at the date of loan application and not older than 70 years at loan maturity.

• Legal capacity to acquire and encumber real property.

• No previous Pag-IBIG housing loan foreclosures or cancellations.

• Up-to-date payments on existing Pag-IBIG accounts.

There is no specific requirement to be a Filipino citizen. However, “Permanent departure from the country” is one of the grounds for membership termination.

Former Filipinos can join Pag-IBIG Fund as voluntary members to buy property in the Philippines. Section 4c, Rule V of the Implementing Rules and Regulations of Republic Act No. 9679 states that voluntary membership starts on the actual registration date.

I will verify this with Pag-IBIG Fund.

This discussion is for educational purposes only. Consult your lawyer for advice on your specific case. For any questions, contact us.

If you’re planning to buy a residential lot, house-and-lot, or condo unit, get in touch with us at 0920 207 5035 or email cebuhousefinder@yahoo.com for free assistance.