In this post we'll share the 3 institutions that you can take advantage of to finance the construction of your dream house.
You have your plans for your dream house design, your contractor, but low on cash? This is where the financing institutions come in play. Although they have different requirements and different ways to finance. These 3 are the go to financing for house construction.
1. PAG-IBIG - The Home Development Mutual Fund (HDMF) mostly known as PAG-IBIG Fund, a public-owned and controlled corporation. It offers its members short term loans and access to housing programs. There are two types of housing loan in PAG-IBIG.
Developer assisted - the developer assist the member in his/her loan application
Retail - the member applies directly to the fund
The process to get a loan from PAG-IBIG:
Should be a member for at least 24 months (not to worry, you can always pay an amount equivalent to contributing for 24 months to avail.)
All requirements should be met with the cooperation of JEMM Builders (Contractor) and borrower(you).
You and the contractor will agree on a contract price and the design of your house.
PAG-IBIG will evaluate and asses your capacity to pay, with your salary certificate (if employed) and or proof of income (for businesses and free lances), appraisal of house and lot price, and will give out the loan-able amount and interest according to their assessment.
The difference of the approved loan and the total contract price will be your equity to pay the contractor which in this case in JEMM Builders.
You can choose to pay the loan for up to a maximum of 30 years.
Once all of the above is processed, the construction can begin, and within 6 months your house will be built by JEMM Builders.
for more info visit: http://www.pagibigfund.gov.ph/
2. SSS - The Philippine Social Security System is a state-run, social insurance program in the Philippines to workers in the private, professional, and informal sectors. SSS has 4 types of housing loan for you to choose from:
Direct Housing Loan for Worker's Organization Members
Direct Housing Loan for OFWs
House Repair/Improvement Loan
Assumption of Mortgage
The process to get a loan from SSS
Should be a member for at least 36 months and 24 continuous months of contribution prior to application to SSS
All requirements should be met with the cooperation of JEMM Builders (Contractor) and borrower(you).
You and the contractor will agree on a contract price and the design of your house.
SSS will evaluate and asses your capacity to pay, with your salary certificate (if employed), appraisal of house and lot price, and will give out the loan according to the assessment
How to apply for SSS Loan: Click Here
The difference of the approved loan and the total contract price will be your equity to pay the contractor
You can choose to pay the loan for up to a maximum of 30 years.
Once all of the above is processed, the construction can begin, and within 6 months your house will be built by JEMM Builders.
For more info visit SSS website: Click Here
3. Bank Loan - A bank is a financial institution that accepts deposits from the public and creates credit. Lending activities can be performed either directly or indirectly through capital markets. Banks are willing to give you a housing loan as long as your credit score is good enough, and if you don't have an outstanding with the bank in mind.
This is the preferred institution by JEMM Builders due to the speed of which banks process loans, and assess your collateral.
Banks in the Philippines to consider:
HSBC
BPI
Security Bank
East West
BDO
RCBC
Metrobank
CTBC Bank
China Bank
PNB Union Bank
Maybank
Click Here for the loan calculator is extremely helpful. Check it out.
With all loans, the lender will need a collateral which is assurance if ever the borrower defaults (decides not to pay) the loan.
Interested in building your dream house?
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