OFW Program

Subject: OFW Loaning

We are always delighted to receive letters from OFW Pag-IBIG Members.

A couple of days ago, we received a letter from a Pag-IBIG Member who is an Overseas Filipino Worker based in Indonesia. The subject line of the email says, “OFW Loaning.” As you can see, he was planning to apply for a Housing Loan with Pag-IBIG Fund. Why not? That’s one of the benefits afforded to every Pag-IBIG Member and you should avail that one too.

If you are an OFW, please read carefully the entire content of this article as you may gather some bits of important information that is particularly applicable to your situation.

Here’s what the letter says in part:

“I am working here in Jakarta for 3 years now making my contribution for Pag-ibig stagnant for 3 years as well. I have three questions: Is it still okay to continue Pag-ibig rather than opt for POP which is specialized for OFWs? If yes, can I pay every 6 or 12 months since I go home once to twice a year to the Philippines anyway? Apart from not giving my contributions for 3 years, can I still presently use my existing contributions which I had with my former employer to loan for housing to date?”

In the succeeding paragraphs, we try to dissect some parts of the letter to address the questions that he raised. We present here our original reply, which was really just a very short and quick. In addition, we also elaborated more on the issue for the benefit of the other website visitors, most especially the Overseas Filipinos.

Question #1 : Is it still okay to continue Pag-ibig rather than opt for POP which is specialized for OFWs?

pag-ibig housing loan philippines Answer to Q#1: The Pag-IBIG Overseas Program (POP) has already been stalled and replaced with the regular Pag-IBIG Membership which is sometimes referred to as Pag-IBIG I. So, if you have not been a member of POP, that’s okay. You can simply continue with your former Pag-IBIG I Membership.

More Detailed Answer: Yes it’s true that since the Pag-IBIG Law of 2009 took effect, all OFWs are already required to become members of the Pag-IBIG Fund. For those who have returned to the country and have visited the office of the POEA before going back to work again abroad experienced this already. Just to make it clear, this is Pag-IBIG I, or the regular Pag-IBIG membership.

The Pag-IBIG Overseas Program was not at all abandoned. It’s just that, Pag-IBIG is not accepting new enrolees to the program anymore. But for those who are already contributors, you can do so until that reaches its maturity period and then be ready to cash out all your contributions.

Question #2: If yes, can I pay every 6 or 12 months since I go home once to twice a year to the Philippines anyway?

Answer to Q#2: Yes you can do that — meaning make advanced payments.

A Better Way To Do It: Have someone whom you can trust with your money pay for your contribution over the counter at the Pag-IBIG Branch of your choice on a monthly basis. Or, you may also issue a set of post dated checks.

Question #3: Apart from not giving my contributions for 3 years, can I still presently use my existing contributions which I had with my former employer to loan for housing to date?

Answer to Q#3: Please be aware that you need to be an actively contributing member to qualify for a housing loan.

Related Answer: Your past contributions will certainly count in terms of establishing your track record with the Pag-IBIG Fund. But remember, it’s not just the contributions that will ensure your loan approval. The most important factor really is your capacity to pay.

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“Subject: OFW Loaning” is written and by Carlos Velasco as an elaborated answer to a letter sent by an OFW Member.

Citizenship, Land Ownership and Pag-IBIG Fund Membership

by Pag-IBIG Financing Admin

A good number of our website visitors came from Filipinos based overseas – both OFWs and immigrants. And occasionally, we also have dual-citizenship holders and former Filipinos who are certainly interested in the Pag-IBIG Fund Program. The messages and inquiries that we received from them are as varied as the different cultures they are currently in.

There is one particular question that struck our attention and we want to cover it hear simply because it many of our visitors can relate to this one and we want them to be informed about this once and for all.

The question came from R. Nunez and he said in part…

“I am a dual citizen but wish to retire early in the Philippines(Filipino/American passport holder).Can I be qualified to become a ‘Pagibig Fund’ member?”

And we replied with this:

“Please don’t make it complicated on your part. You can always use a Mortgage Loan from a Bank in your situation. That way, there is no more membership requirements and other complicated matters that go with it.”

“And yes, you are certainly allowed to own a piece of land under the Laws of the Philippines.”

(For the complete series of replies, refer to this link. )

Again, we are citing that particular inquiry because we want to elaborate further and add a few more important information for Dual Citizenship holders just like Mr Nunez and other former Filipinos as well.

Citizenship and Membership To The Pag-IBIG Fund

The right answer to Mr Nunez question is this: Yes, he is qualified to be a member of the Pag-IBIG Fund under the Pag-IBIG Overseas Program. As a matter of fact, The Pag-IBIG Fund stated that “Membership under the Pag-IBIG Overseas Program (POP) shall be open to all Overseas Filipino Workers (OFWs) with valid visas or employment contracts. Likewise, it shall be open to Filipino immigrants and to Filipinos naturalized in other countries.”

IMPORTANT UPDATE:
The Home Development Mutual Fund (or simply Pag-IBIG Fund) has changed the rule requiring OFW’s to become members of the Pag-IBIG Fund. In other words, the Pag-IBIG Overseas Program is only optional for the OFW’s, because they are now required to become regular members of the Pag-IBIG I.

For more information on the Pag-IBIG Overseas Program, please refer to the following links:

Citizenship and Land Ownership

dual passport -- Philippines and England It is a well known fact that land ownership in the Philippines is granted only to Filipino Citizens and Philippine Corporations with at least 60% interest by Filipinos.

Foreign Nationals are definitely not allowed to own. Most of them simply put the Land title in the name of a Filipino whom they can trust such as the spouse. Or it could be that they are on a long term lease-contract with the land owner.

As for the former Filipinos who are already naturalized in other countries, the Law of the Philippines still allows them to own a piece of land, but with a few limitations.

If this describes you, take note of the following restrictions.

Land must be used for residential or business purposes only.
Limitation on Residential land:
1. maximum of 1,000 sq meters of urban land
2. or one (1) hectare of rural land is allowed
Limitation of Land intended for business use:
1. maximum of 5,000 sq meters of urban land
2. or three (3) hectares of rural land
You can only get either urban land or rural land, but not both.
A maximum of two (2) lots not exceeding the maximum limit in total combined area is allowed. Lots must be located in different cities or municipalities.

As for the Dual Citizenship holders (one citizenship being a Filipino) the Law of the Philippines still allows you to own land in your name just like any Filipino National.

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Citizenship, Land Ownership and Pag-IBIG Fund Membership is written by Carlos Velasco.

The Pag-IBIG Overseas Program

by Pag-IBIG Financing Admin

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:

All Overseas Filipino Workers (OFWs) with valid Visas or Employment Contracts
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:

Housing Loan
Multi-Purpose Loan
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.