Basis for Bank Housing Loan Approval in the Philippines
You are finally ready to take the Big Leap of being a HomeOwner. You’re excited with your Dream Home for your Family. But then, at the back of your head, you can’t kept yourself from asking,
What if I didn’t get my housing loan approved? (What if hindi me ma approved? What will happen?) If you’re one of these person, Welcome. This Guide will help you clear the air and make it easier for you to acquire your Dream Home.
BANK LOAN REQUIREMENTS
- Income Tax Return or Certificate of Creditable Tax Withheld at Source for at least three (3) years
- Photocopy of valid 2 Government Issued ID’s with 3 specimen signature
- Latest Proof of Billing
- BIR Form 2316
- Certificate of Employment and Salary ; payslip for the past three (3) months
If an OFW and SEAMAN:
- Certificate of Employment (COE) duly authenticated by Philippine Consulate
- Crew Contract & Exit Pass validated by POEA (for Seamen)
- Payslips for the last 3 months
- Notarized or authenticated Special Power of Attorney (Provided by the Developer)
If in business:
- Income Tax Return and Audited Financial Statement for three (3) years
- In-House Financial Statements for at least three (3) years (if necessary)
- Certificate of Business Registration (SEC / DTI)
- Articles of Incorporation / Partnership and By-Laws
- Business Background / Company Profile
- List of major suppliers and customers (pls. indicate telephone number and contact person)
Additional requirements (May be requested by Bank to show proof of Capacity to Pay)
- Bank Statements / Certification
- Titles to properties owned but not offered as collateral (if any)
- Lease contracts of income generating properties (if any)
- OR/CR of vehicles owned (if any)
- Stock Certificates (if any)
What are the basic things I need to know about a Bank Housing Loan?
The following are the basic information you should know about Direct Housing Loan:
- Eligible borrowers are Filipino citizens. Foreign nationals are allowed for condominium purchases only. However, a purchase of house and lot or vacant lot will be considered if a foreign national is married to a Filipino citizen and an Affidavit of Support and Waiver of Rights over the collateral property are executed by the foreigner.
- Borrower’s age should be at least 21 but not more than 65 years old upon maturity of the loan for locally employed. Not more than 60 years old for OFW.
- Principal borrowers must have an income source as a regular employee or from a business with a minimum profitable operation of 2 years.
- The amount of loan you can borrow depends on your income (capacity to pay) and the appraised value of the property.
- The interest rate that will be applied to your loan will be the prevailing Bank rate at the time of loan release.
My husband is an Expat Pinoy (OFW), can we apply for a housing loan?
Yes. For Expat Pinoys or OFW, we can offer a loan term of up to fifteen (15) years to pay. In addition to the basic requirements, you are requested to submit: (1.) Your spouse’s certificate of employment / employment contract duly authenticated by the Philippine Consulate Office (for direct hires only); and, (2.) Crew contract and exit pass from POEA (for seaman).
I am a Filipino working abroad, can I apply for a housing loan?
Yes, provided that you can submit your certificate of employment as well as employment contract duly authenticated by the Philippine Consulate Office. Also, you need a co-maker and attorney-in-fact who is residing in the Philippines. Your attorney-in-fact can be your wife or a relative who also has the capacity to pay. He / she needs to submit a Special Power of Attorney. (Forms provided by the Developer).
I am formerly a Filipino citizen and now a citizen of another country, can I apply for a housing loan?
Under the Balikbayan law, you may purchase house and lot of not more than 1,000 sq. m. provided that you intend to stay here for at least two (2) years and you have a source of income in the Philippines. You will be asked to execute a sworn statement showing your intention to reside in the Philippines.
I am separated, can I apply for a housing loan?
If you are legally separated and can submit copies of the court decision regarding your separation, we can process your loan having you as the sole borrower without requiring your estranged spouse to sign. However, if you are not legally separated, your estranged husband / wife must sign on all documents.
Can I still apply for a loan if a different party owns the collateral?
Yes, you can still apply provided that the owner of the property is willing to be your co-borrower / co-mortgagor. He / she must fill out a separate application form and must meet the age requirement. Upon loan approval, he / she will be required to sign on all documents. However, this will be treated on a case-to-case basis.