What is the Housing Loan Program? (Circ. 247)

The Housing Loan Program extends assistance to individual borrowers to finance any or a combination of the following:

• Purchase of a fully developed lot not exceeding one thousand (1,000) square meters which should be within a residential area;
• Purchase of a lot and construction of a house thereon.
• Purchase of a residential house and lot, townhouse or condominium unit, inclusive of a parking slot, which may be:

-old or brand new;

-a property mortgaged with the Fund; or

-an acquired asset which is disposed of through sealed public bidding, negotiated sale or Rent to Own program

• Construction or completion of a residential unit in a lot owned by the member;
• Home improvement;
• Refinancing of an existing mortgage loan with an institution acceptable to the Fund, provided that:

- the loan to be refinanced is current and updated at the time of loan application;
and

- the account reflects a perfect repayment history for at least two years, as supported by the borrower’s official receipts

• Combination of loan purposes shall be limited to the following:

-Purchase of a fully developed lot not exceeding 1,000 sq.m. and construction of a residential unit thereon

-Purchase of a residential unit, whether old or new, with home improvement;

-Refinancing of an existing mortgage with home improvement or

-Refinancing of an existing mortgage, specifically a lot loan with construction of a residential unit thereon.

Who are eligible to borrow?

• • Must be a member under the Pag-IBIG I or Pag-IBIG II program for at least 24 months as evidenced by the remittance of at least 24 monthly contributions at the time of loan application:
  • Must be a member under the Pag-IBIG Overseas Program (POP) for at least two years
  • A member under Pag-IBIG I & II or the POP shall be allowed to make a lump sum payment equivalent to the required number of monthly contributions to satisfy this requirement;
  • Under the Pag-IBIG Overseas Program (POP), must have remitted an amount equivalent to his savings for at least 12 months.
  • Must not be more than 65 years old at loan maturity and must be insurable;
  • Must have the legal capacity to acquire and encumber real property;
  • Must have passed satisfactory background/credit and employment/business checks of the developer and the Fund;
  • Had no Pag-IBIG housing loan that was foreclosed, cancelled, bought back or subjected to “dacion en pago”
  • Must have no outstanding Pag-IBIG housing loan, either as a principal borrower or co-borrower; and
  • Has no outstanding Pag-IBIG multi-purpose loan in arrears at the time of loan application. A member whose multi-purpose loan is in arrears shall be required to pay his arrears over the counter to update his account.

How does one avail of a Pag-IBG Housing Loan ?

• • 1. Attend a Loan Counseling session at the Pag-IBIG Office concerned

Accomplish a Preliminary Loan Counseling Questionnaire, Housing Loan Application (HLA) and Membership Status Verification Slip. If eligible, secure checklist of requirements.

• • 1. Submit HLA with complete requirements. Pay a processing fee of P1,000.00 (non-refundable)
    2. Receive Notice of Approval/Letter of Guaranty and sign loan documents.
    3. Proceed to BIR and present Deed of Absolute Sale (DOAS) between owner of the property and applicant for payment of documentary stamps and capital gains tax.
    4. Proceed to Registry of Deeds (RD) for payment of transfer of tax and registration fees for the transfer of title.
    5. Proceed to Notary Public for notarization of LMA and annotation of mortgage with the Registry of Deeds (RD) and to Assessor’s Office to secure new tax declaration in the name of the applicant.
    6. Secure Occupancy Permit from the Local Government Unit’s (LGU) Engineering Office for Purchase of new Residential Unit (PRU), Purchase of Lot and Construction of a New Residential Unit (PLCH) and Construction of House (CH) loan purposes.
    7. Submit the following documents to Pag-IBIG office concerned:
       • Original Transfer Certificate of Title in the name of the applicant with annotated mortgage
       • DOAS with original RD stamp
       • New Tax Declaration in the name of the applicant
       • Updated Real Estate Tax Receipt (house and lot, if applicable)
       • Occupancy Permit
       • Assignment of Loan Proceeds
    8. Release of loan proceeds
    9. Start monthly amortization on the month immediately following loan take-out/final loan release.

Article taken from : Pag-IBIG Fund

More related Real Estate News and Updates at: Http://www.allrealestateph.com

Realty Installment Buyers Protection Act (R.A 6552 MACEDA LAW)

Right to update payments without additional interest or in the alternative a refund of cash surrender value.

There are two categories of buyers accorded protection under this law:

1. a buyer with at least 2 years of installments under Section 3 RA 6552, and
2. a buyer with less than 2 years of installments under Section 4 RA 6552Buyer with at least two (2) years of installment – Section 3 RA 6552
   If the buyer in this category defaults in the payment of his succeeding installments, he is entitled to the following rights:
   1. to pay without additional interest the unpaid installments due within the total grace period earned by him. Said grace period is equal to one (1) month for every year of installment payments he has made. Here the buyer has at least two (2) months grace period for he should have paid at least two (2) years of
      installments to avail of the rights under this section.

      This right can be exercised by the buyer only once in every five years of the life of the contract.

   2. to be refunded of the cash surrender value of his payments equal to 50% of his total payments if the contract is cancelled. But if he has paid five years or more, he is entitled to an increase of 5% every year and so on but the cash surrender value shall not exceed 90% of his total payments.The actual cancellation of the contract referred to above shall take place only:
      1. after 30 days from receipt by the buyer of the notice of cancellation or demand for rescission, AND
      2. upon full payment to the buyer of the cash surrender value.In the computation of the total number of installment payments the following are included:
         1. down payment and
         2. deposit or option money

         Section 3 of RA 6552 provides, thus:

         “SECTION 3. In all transactions or contracts, involving the sale or financing of real estate on installment payments, including residential condominium apartments … where the buyer has paid at
         least two years of installments, the buyer is entitled to the following rights in case he defaults in the payment of succeeding installments:

         “(a) To pay, without additional interest, the unpaid installments due within the total grace period earned by him, which is hereby fixed at the rate of one month grace period for every one year of installment payments made; provided, That this right shall be exercised by the buyer only once in every five years of the life of the contract and its extensions, if any.

         “(b) if the contract is cancelled, the seller shall refund to the buyer the cash surrender value of the payments on the property equivalent to fifty per cent of the total payments made and, after five years of installments, an additional five per cent every year but not to exceed ninety per cent of the total payments made; provided, That the actual cancellation of the contract shall take place after thirty days from receipt by the buyer of the notice of cancellation or demand for rescission of the contract by a notarial act and upon full payment of the cash surrender value to the buyer.

         “Down payments, deposits or options on the contract shall be included in the computation of the total number of installment payments made.”

   Buyer with less than 2 years of installments Section 4 RA 6552
   If he has paid less than two (2) years of installments, he still has the right to pay within a grace period of not less than sixty (60) days from the date the installment became due.

   If the buyer fails to pay the installment due at the expiration of the grace period, i.e. 60 days, the seller may cancel the contract after 30 days from receipt by the buyer of the notice of cancellation or demand for rescission of the contract by a notarial act.

   Here the buyer is not entitled to any refund.

   Section 4 of RA 6552 provides, thus:

   “SECTION 4. In case where less than two years of installments were paid the seller shall give the buyer a grace period of not less than sixty days from the date the installment become due. If the buyer fails to pay the installments due at the expiration of the grace period, the seller may cancel the contract after thirty days from receipt by the buyer of the notice of cancellation or the demand for rescission of the contract by a notarial act.”

Right to Assign/Reinstate Contract

The buyer has a right to sell or assign his rights over the lot or unit to another person or reinstate the contract by updating the account provided this is done during the grace period and before actual cancellation of the contract.

Section 5 of RA 6552 states:

“SECTION 5. Under Sections 3 and 4, the buyer shall have the right to sell his rights or assign the same to another person or to reinstate the contract by upgrading the account during the grace period and before actual cancellation of the contract. The deed of sale or assignment shall be done by notarial act.”

Right to Advance Payment without Interest and Annotation of Full Payment in the Title Subject of the Sale

The buyer has the right to pay in advance any installments or the full unpaid balance without interest any time and have such full payment annotated in the title.

Section 6 of RA 6552 states:

“SECTION 6. The buyer shall have the right to pay in advance any installments or the full unpaid balance of the purchase price any time without interest and to have such full payment of the purchase price annotated in the certificate of title covering the property.”

Article taken from: HOUSING AND LAND USE REGULATORY BOARD; Government’s regulatory body for housing and land use development

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THE RIGHT TO OWN LAND:
The right to own real estate in the Philippines is governed by:

1. Constitution and
2. Other pertinent laws, as follows:

General Rule:

1. Only Filipino Citizens and
2. Corporations or partnerships at least 60% of the capital of which is owned by Filipinos are entitled to acquire land in the Philippines.

EXCEPTIONS:

As exceptions to the general rule, alien (foreign) acquisition of real estate in the Philippines is allowed in the following cases:

1. Acquisition before the 1935 constitution
2. Acquisition by hereditary succession;
3. C. Purchase by aliens of not more than 40% of the units in a condominium project

• B.P. 185 (1982): FORMER NATURAL BORN FILIPINO CITIZENS

Purchase by former natural born Filipino Citizens, subject to the requirements or limitations prescribed by law.

1. Acquisition shall not exceed 1,000 square meters/ 10.7639 square feet for URBAN LAND OR 1 hectare/ 107639.104 square feet for RURAL LAND to be used solely for residence of the buyer
2. In case of married couples, one or both of them may avail of the privilege provided that the total area shall not exceed the maximum limit
3. When the transferee already owns urban or rural lands for residential purpose, he shall be entitled to acquire additional urban or rural land for residential for residential purpose which, when added those already owned by him, shall not exceed the maximum area allowed by law.

• Foreign Investments Act of 1991: ( RA 7042 as amended by R.A 8179)

Any natural born citizen who has lost his Philippine citizenship and who has the legal capacity to enter into a contract under Philippine laws may be a transferee of a private land

1. Up to a maximum area of five thousand (5,000) square meters in the case of urban land or three (3) hectares in the case of rural land to be used by him for business or other purposes.
2. In the case of married couples, one of them avails of the privilege herein granted: Provided that if both shall avail of the same, the total area acquired shall not exceed the maximum herein fixed.
3. In the case the transferee already owns urban or rural land for business or other purposes. He shall still be entitled to be a transferee or additional urban or rural land for business or other purposes which when added to those already owned by him shall not exceed the maximum areas herein authorized.
4. A transferee under this Act may acquire not more than two (2) lots which should be situated in different municipalities or cities anywhere in the Philippines: Provided, that the total land area thereof shall not exceed five thousand (5,000) square meters in the case of urban land or three (3) hectares in the case of rural land for use by him for business or other purposes. A transferee who has already acquired urban land shall be disqualified from acquiring rural land and vice verse. (Sec. 10, RA 7042 as amended by R.A 8179, Approved March 28, 1996)

1. A  Filipina who married an alien retains her Philippine Citizenship (unless by her act or omission she is deemed under the laws to have renounced her Philippine Citizenship) and may therefore still acquire real estate in the Philippines.

• Dual Citizenship Law (R.A. 9225)

A former natural-born citizen of the Philippines who became a citizen of another country and reacquires Filipino Citizenship