Pagibig Financing

Pag-IBIG Fund, Housing Loans, Mortgage, Membership, Foreclosures, etc

OFW Members

The Pag-IBIG Overseas Program

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For many Filipinos, times seem so hard these days in their homeland. That is why more and more Pinoys try their luck abroad, where the grass is perceived to be greener. They work in foreign lands that promise them the financial freedom that their native country cannot seem to give them.

For those who are lucky enough to return to their native land with sufficient money they have accumulated abroad, the first sound investment that would come to mind is an investment in real property. Home ownership is in every responsible Filipino’s wish list.

Overseas Investment

But waiting for a good sum of money to pay Spot Cash for a property in the Philippines is not only a good idea, but would also take a long time for most Overseas Filipinos. After all, there are other expenses, family remittances and obligations to take care of also.

Wouldn’t it be nice if they can start building their home in the Philippines while they are building their nest of cash overseas? In other words, building a house in the Philippines, without requiring too much upfront cash and pay for it in installments (mortgage amortizations).

Enter: The Pag-IBIG Overseas Program

To help the Overseas Filipino Workers, along with immigrants and naturalized citizens realize their dream home, the Pag–IBIG Overseas Program (POP) was created.

The Pag–IBIG Overseas Program is a voluntary Savings Program, wherein members are given a chance to set aside money for their future housing investments. With the program, members may avail of a housing loan of as much as Php 3,000,000 (at the time of this writing).

The Pag-IBIG Overseas Program is open to the following:

  1. All Overseas Filipino Workers (OFWs) with valid Visas or Employment Contracts
  2. Filipino immigrants and naturalized citizens

Money Talk – Member Contributions

Members of the program are to contribute monthly an amount equal to $US 5, at a minimum.

An upgraded membership is required for members, who would like to avail of a higher loan amount.For instance, if a member wishes to avail of a housing loan ranging from P1,500,000 to P1,600,000, he or she will have to contribute monthly an amount equal to the US dollar equivalent of PhP 750 at the point of availing the loan.

The upgraded membership contribution will form part of the housing loan monthly amortization.

POP As Savings / Investment

The Pag–IBIG Overseas Program not only serves as the OFW’s aid in fulfilling his dreams of owing a home. It also serves as a savings investment in the mutual fund company, that promises positive gains on the investment money. Note: The Pag-IBIG is a government controlled Mutual Fund corporation.

As a Pag – IBIG Overseas Program member, one is entitled to variable dividends from the excess earnings of the Fund. These dividends are distributed annually to the members and are credited to their Total Accumulated Values (TAV).

Members of the program have the option to withdraw their accumulated savings at the end of five (5), ten (10), fifteen (15), or twenty (20) years upon membership.

Foreign denomination contributions shall be converted to the Philippine Peso based on the prevailing US dollar exchange rate. As such, withdrawals of savings shall be made in Philippine Peso.

Member Benefits

Members of the Pag-IBIG Overseas programs are illegible to the following benefits:

  1. Housing Loan
  2. Multi-Purpose Loan
  3. Dividends

It is good to know that the Pag–IBIG Overseas Program is there to reward the efforts of OFWs through an effective savings and home financing scheme. Somehow, through POP, the OFW’s return to their native land will grant them the freedom that was somewhat denied them in the first place.

Indeed, perhaps one’s best investment in life is one’s own home. It reflects one’s status and achievement in life. This is especially true for Overseas Filipino Workers, who take chances and make sacrifices abroad for their future and that of their families.

Related Links

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The Pag-IBIG Overseas Program is written by Kyro Jo.

Voluntary Membership To Pag-IBIG Fund: The Self-Employed, Freelancers, And Non-Employees

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Self – employed? Unemployed? How about Non-Employed? In other words, are you not connected with a single company that considers you on its monthly payroll?

The good news is, you can become a member of the Pag-IBIG Fund as a Voluntary contributor.

The bad news is you have to shoulder of the contributions yourself without the aid of a company or employer. But if you are self-employed or you are on a business by yourself, you already know that you are in control of your financial direction, right?

In this article, we’ll show you how to become a member of the Pag-IBIG Fund as a Voluntary Member.

How To Join Pag-IBIG As A Voluntary Member

  1. Accomplish and submit two (2) copies of the MDF and all required supporting documents to the Marketing and Enforcement Division of the concerned Pag-IBIG branch office (bring all originals for authentication).
  2. Secure a Payment Order Form (POF) from the Marketing and Enforcement Division, and then proceed to the Cash Division for payment of initial Membership Contributions (MC).
  3. Present all verified/stamped documents to the Marketing and Enforcement Division.
  4. Secure a Payment Order Form before proceeding to Cash Division for payment of contribution.

Requirements For Individual Payers

Here are the respective requirements for different categories of Individual Voluntary Members. Please check with group you belong.

1. Self-Paying Empployee (Waived Company)

You may be employed by one or more companies, but for some reasons, you choose to pay your Pag-IBIG contributions by yourself without their aid.

  • Certificate of Employment & Compensation
  • Latest Pay Slip
  • Company ID

2. Self – Employed

Freelancers, professionals, consultants and owners of small businesses belong to this category. (See also item #5.)

  • Latest Income Tax Return (ITR) with Financial Statement of the previous year certified by a CPA
  • Certificate of Remittance/ESAV (for old members)
  • Two 1×1 ID pictures
  • SEC or DTI Registration (should be under the member’s name)
  • Business Permit or Mayor’s Permit

3. Franchise Holders or Operators

  • Franchise Permit (under the member’s name)
  • Official Receipt or Car Registration (under member’s name)
  • Latest ITR (previous year)
  • Two 1×1 ID pictures
  • Certificate of Remittance or ESAV

4. Overseas Filipino Workers (reactivating members)

  • Latest Contract of Employment
  • Passport or any valid ID / POEA License
  • Latest and valid Contract of Employment (with POEA original stamp)
  • Certificate of Remittance or ESAV
  • Two 1×1 ID pictures
  • Special Power of Attorney (SPA), in case a representative shall submit the documents and pay the member’s contributions

5. Self – Employed Professionals

These are government licensed professionals practising their expertise.

  • PRC / BAR License
  • Latest ITR (previous year)
  • Certificate of Remittance or ESAV (for old members)
  • Two 1×1 ID pictures

6. Unemployed Spouse

Yes, if you are unemployed you may still qualify provided your spouse is employed and a Pag-IBIG member.

  • Written consent from member-working spouse
  • Certificate of Employment and Compensation of member-working spouse
  • Affidavit of Unemployment

7. Member – Spouse with Business

This is similar to #6 above, but the spouse is in business.

  • Latest ITR
  • Written consent from member-employed/working spouse
  • Certificate of Employment and Compensation of member-working spouse (notarized)
  • Affidavit of Unemployment
  • Two 1×1 ID pictures
  • ITR (previous year)
  • Business Permit or Mayor’s Permit
  • SEC or DTI Registration

Important Notes:

  • Monthly contributions of unemployed members (reactivating or non-working spouse) shall be P100.00.
  • The unemployed member has the option to upgrade his monthly contributions, but may not downgrade the amount.
  • Unemployed members may avail of the Multi-Purpose Loan, but not a housing loan from Pag-IBIG.
  • Individual payers or voluntary members have the option to choose their terms of payment, e.g. monthly, bi-monthly, quarterly, etc.

8. Unemployed (reactivating member)

Well, let’s admit it, times are tough. One day, your employment may just be gone in a flash. You may still continue your contributions provided you provide:

  • Affidavit of Unemployment

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This article on Voluntary Membership To Pag-IBIG is written by Kyro Jo.