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OWN A PHILIPPINE HOME LOAN PROGRAM

About the Program

This loan facility is open to all Filipinos and non-Filipinos residing and working overseas who are interested in purchasing residential real estate (lot, house & lot, condominium, townhouse or rowhouse) in the Philippines. The loan may also be availed of for purposes of constructing a house on a lot owned by the borrower, improvement on an existing house owned by the borrower and refinancing of a Philippine Peso home mortgage loan. Borrowers may avail of only one loan.

Properties that can be acquired under the program are those located at the following major locations:

Metro Manila Legaspi General Santos Metro Cebu
Batangas Bacolod Cavite Baguio
Davao Naga Laguna Cagayan De Oro
Iloilo Tacloban Rizal Zamboanga
Dagupan Bulacan Quezon
*additional list of cities/province may be obtained from the PNB office.

WN A PHILIPPINE HOME LOAN PROGRAM

Who can Borrow

# Filipinos residing and working overseas who have maintained their Filipino citizenship.
# Natural-born Filipinos residing and working overseas who have lost their Filipino citizenship (limited to a maximum area of 5,000 square meters).
# Citizens and nationals of foreign countries who are non-filipinos and residing in the (limited to acquisition of condominium units only where the common areas are owned by the Condominium Corporation.

Note: If an applicant is a temporary worker on a temporary working visa his/her qualification to borrow under this program shall be determined on a case to case basis, depending on the prospective stability of employment, the current and future assets of the borrower and other factors.

How Much You Can Borrow

The minimum loan amount and payment terms are:

Minimum Loan Amount Maximum Loan Term
Purchase of lot $10,000.00 10 Years
Purchase of house & lot $20,000.00 20 Years
House Construction $20,000.00 20 Years
House Improvement $10,000.00 10 Years
Refinancing Loan Balance 20 Years

Repayment Terms

* Repayment of loan shall be in US dollars with an option to choose either a:

Fixed Term With Variable Monthly Amortization - the amount of the monthly amortization shall be adjusted upward or downward depending on the movement of the interest rate. The term of the loan is fixed.
Fixed Monthly Amortization with Sliding Maturity - the amount of monthly amortization is uniform for the entire term of the loan regardless of interest rate changes. Loan term shall be adjusted in case of increases or decreases in the interest rate.

* Payments commence one month after loan release. Payments will be made against a monthly statement of account which shall be sent approximately 2 weeks prior to each monthly due date.

How to Apply and How Long Processing Will Take

1. Send a complete application package to PNB ____ branch together with supporting documents. A complete application package will include:
* Personal Financial Statement
* Declaration of Purpose Statement
* Collateral Appraisal/Reappraisal Authorization
* Credit Information Authorization
* Request for Verification of Deposits
* Check in the amount of $225.00 to pay for the following fees:
o $100 - non-refundable application fee
o $125 - appraisal fee (refundable if application is withdrawn prior to appraisal of real property collateral
The required supporting documents are:
* Latest 2 years income tax returns with withholding tax statements
* Most recent pay slips (2 months)
* ost recent bank statements ( 2 months)
* To obtain a proper appraisal of the property, the following items should be attached to the Collateral/Appraisal/Reappraisal Authorization:
o Transfer/Condominium Certificate of Title (may still be in the name of seller)
o Lot Plan certified by Geodetic Engineer
o Latest Tax Receipt
o Realty Tax Declaration
o Reservation Agreement, Contract to Sell or Conditional Deed of Sale (if borrower has tendered a down payment)
2. Upon receipt of the complete application package, a formal appraisal report will be requested through PNB Manila and the PNB branch shall evaluate the credit worthiness of the loan applicant.
3. The approval/denial process will take approximately 2 weeks from the time PNB receives all required documents, which shall include the appraisal report on the real estate property (note: 3 to 4 weeks if Head Office approval is required for loan amounts exceeding the PNB branch?s approving limit). The decision will be conveyed to the applicant in writing.
4. Upon final approval, legal documents will be prepared. Loan related documents will be signed by the borrower in the ___. Real estate mortgage documents may be signed by the borrower in the ___ or an Attorney-In-Fact in the Philippines. The mortgage documents or the Special Power of Attorney appointing an AIF will require authentication by the Philippine Consulate.
5. Upon receipt by PNB Manila of all signed documents, the real estate mortgage is registered and annotated on the title (already in the name of the borrower), the loan proceeds are released to the appropriate payees. Real estate property titles are kept at PNB Manila.

The entire loan process, including appraisal, legal, filing, execution of documents and loan release, is expected to take approximately 1 1/2 to 2 months, assuming there is no delay in the transfer of title to the buyer. A 1% (of loan amount) origination fee will also be charged upon execution of all related documents prior to the release of the loan proceeds.

More updated info at http://203.177.21.43/Portal/do/ofw