Housing Loan Philippines How to Affordably Own a Home in the Philippines

Owning a home is probably one of the biggest dreams of every Filipino but the reality of owning one seems to be an impossible feat for the great majority. Good thing there are housing loan Philippines available. Now, even the working class can start weaving their dreams to reality!

There are a lot of privately held corporations as well as government institutions that offer housing loan Philippines. However, since these institutions have their own guidelines and specific loan terms, it’s best to shop around and do some research before you settle for one to make sure you get the best deal in town. After all, buying or building a house is one of the biggest decisions you’ll ever make in your life.

Most housing loan Philippines are open to all Filipinos, residing and working in the Philippines or overseas, who wish to purchase residential real estate in the country. So, whether you, the borrower, are interested in purchasing a lot, a house and lot, a condominium unit, a townhouse or a residential rowhousing unit, you may qualify for such loans provided that you meet the individual criteria set by the lending institution. Housing loan Philippines may also be used for the improvement on an existing house owned by the borrower and for refinancing a Philippine Peso home mortgage loan.

Some of the most common criteria set by institutions offering housing loan Philippines include the following:

Age Requirement. Must be at least 21 years old during the time of loan application and must not be over 65 years old at the time of loan maturity.

Employment Status. If the borrower is employed, he or she must be on regular status at current work. He/she must also have at least 2 years work experience, and with a minimum gross family (combined for married applicant) monthly income of P30,000. If the applicant is self-employed, he/she must be a practicing professional or his/her business must be operating profitably, for at least the last 2 years, and with a minimum net monthly income of P30,000. However, please note that the minimum acceptable monthly income may vary from one institution to another.

Even non-Filipinos (foreign nationals) who want to own a residential real estate in the Philippines can qualify for a housing loan Philippines in some lending facilities, provided that he/she has been residing in the country for the last 2 years. Depending on the program chosen, temporary workers on a temporary working visa, may or may not be granted a loan, depending on the prospective stability of his/her employment, his/her current and future assets and other such factors.

However, do note that foreign nationals are only allowed to acquire condominium units, where the majority is owned by Filipino Citizens or the foreign ownership in the Condominium Corporation should not exceed 40% as required by Philippine Law.

If you’ve decided that you really need to apply for a housing loan Philippines to bring your dream house into existence, you need to choose which institution and under which terms will be right for you and your needs. Here are some tips that may help you accomplish this:

Ask for recommendations. Oftentimes, the best way to find the best lenders is to shop for recommendations. Word of mouth is, and always will be, the best gauge to learn about the best deals in town. Have any of your friends taken a home loan recently? What do they recommend? Ask about their experiences and use those to help you in making your own decision.

Consider your unique needs. Take an honest look at your situation and decide what your essential needs are. If you’re buying your first home, the loan terms should be easily manageable, especially during the first year. This is important since a housing loan can significantly change your financial situation. Work on something that you can effectively manage.

Consider the package. Different lending facilities offer different packages. There are some that only offers about 60% to 80% of the project’s total value while some may offer to fully finance the project. Interest rates and repayment terms also vary from one institution to another. So, it may be best for you to do your research thoroughly and keep a comparison chart on what the lending institutions are offering you. This way, you’ll be able to choose the best package available for you.

Your dream home may just be a few steps away so don’t give up. No matter what your current situation is, chances are, there is a perfect housing loan Philippines that will fit your needs.

There are also some other types of loans such as salary loans that might interest you.