What are the Financing Options in the Philippines?

Community Mortgage Programs (CMP)

In the Philippines, there are several community mortgage programs available for low-income families and individuals. These include:

1. Social Housing Finance Corporation (SHFC) administers this program and aims to provide affordable housing to informal settlers and other low-income groups.
2. Pag-IBIG Fund Community Mortgage Program (CMP) – This program is offered by the Home Development Mutual Fund (HDMF) and provides financial assistance to informal settlers and other low-income groups for the purchase or improvement of their homes.
3. National Home Mortgage Finance Corporation (NHMFC) offers this program and provides financial assistance to low-income families for the purchase or improvement of their homes.
4. Philippine Veterans Affairs Office (PVAO) offers this program and provides financial assistance to war veterans and their families for the purchase or improvement of their homes.
5. Local Government Units (LGUs) can offer and provides financial assistance to low-income families for the purchase or improvement of their homes.

It’s important to note that the specific requirements, terms, and conditions for each program may vary, and it’s best to reach out to the specific agency for more information.

The eligibility criteria for community mortgage programs in the Philippines typically include being a Filipino citizen, having a regular income, and not owning any other property.

However, it’s worth noting that the rules and regulations on foreign nationals’ property ownership in the Philippines are not very clear-cut and may vary depending on the type of property, location, and certain laws and regulations. It’s best to consult with a lawyer or real estate professional for more information on foreign nationals’ property ownership in the Philippines.

1. Bank financing: Some commercial banks in the Philippines offer home loans to foreign nationals and investors, but the terms and conditions may be stricter compared to those for Filipino citizens.
2. In-house financing: Some developers and property sellers may offer in-house financing to foreign nationals and investors, but the terms and conditions may vary.
3. Pag-IBIG Fund: The Home Development Mutual Fund (HDMF), commonly known as Pag-IBIG Fund, also offers a Home Development Mutual Fund (HDMF) Foreign Housing Loan Program (FHLP) to qualified foreign nationals working in the Philippines. The program aims to provide affordable housing options to foreign employees working in the country. However, the maximum loanable amount is limited and the interest rate is higher than the regular housing loan program.
4. Lease-to-Own: Some developers also offer lease-to-own schemes for foreign nationals and investors. This allows the tenant to lease the property for a certain period of time, with the option to purchase the property at the end of the lease period.

It’s important to note that foreign nationals are subject to certain restrictions on property ownership in the Philippines and it’s best to consult with a lawyer or real estate professional for more information and to ensure compliance with local laws and regulations.

Banks

Banco de Oro, Bank of the Philippine Islands, Union Bank, and Philippine National Bank are generally offering the same banking services, with some minor variations.

Banco de Oro (BDO) does offer housing loans for properties classified as condominiums, which are open to foreign nationals who meet certain visa requirements. The maximum loan is up to 80% of the appraised value of the property, with a minimum loan of P500,000 and a term of up to 20 years.

Bank of the Philippine Islands (BPI) also offers loans for condominiums that are open to foreigners. The minimum loan is P400,000 with a maximum of 60% of the appraised value of a vacant lot or residential condominium. The minimum qualifying total household income is P40,000 and the loan term for residential condominiums is a maximum of 10 years.

Union Bank does lend to foreigners who wish to buy a residential condominium and are supported by a valid Alien Certificate of Registration (ACR) or Special Resident Retiree Visa (SRRV). The minimum loanable amount is P500,000.00, while the maximum loanable amount is up to 90% of the property’s selling price.

It is possible to obtain loans to buy property in the Philippines from foreign banks, such as HSBC. However, please note that the availability of mortgage services may vary depending on the country and branch of the bank. It is best to check with the specific bank for more information on the mortgage options available to foreign nationals.

Lastly, Philippine National Bank does have a home loan through their Singapore branch that is open to foreigners to purchase property in the Philippines. However, for foreigners, the loan is limited to the acquisition of condominium units only where the majority is owned by Filipinos, as required by Philippine Law. The borrower’s gross annual salary should be at least SGD 48,000.00 and Total Debt Servicing Ratio must not exceed 60% of Gross Monthly Income. Philippine National Bank (PNB) does have branches in Los Angeles and New York, as I can see from their website. These branches are a part of PNB’s Remittance and Collection International (RCI) network, which is a network of remittance centers that cater to the needs of overseas Filipinos and foreign nationals. These branches in Los Angeles and New York are not full-service branches, but they do have the capability to handle remittances, foreign exchange, and other banking transactions. They may also be able to assist in obtaining a mortgage from PNB if you are a foreign national or investor interested in purchasing property in the Philippines.