Owning a home is a dream for many OFWs. After all, the reason they leave the country to work abroad in the first place is to provide a better life for their families. The OFW Pabahay program, also known as the Tahanan ng Bagong Bayani (TBB) program, provides an affordable housing solution to make this dream come true. It is spearheaded by the Philippine National Housing Authority (NHA) and the Department of Labor and Employment (DOLE).
In this article, we will explore the OFW Pabahay Program. We’ll look into the details of the program, including who is eligible, the kinds of housing options you can acquire, how to apply, and the payment schemes. This guide will help both OFWs currently working abroad or former OFWs wanting to build a home they can call their own in the Philippines.
How OFWs Can Build Their First Home in the Philippines
The OFW Pabahay Program, aka TBB Program, is a government initiative aimed at providing affordable housing options to OFWs. These homes come from the Government Employees Housing Program (GEHP), which was originally made for uniformed personnel and other government employees. The coverage of this program was expanded to include OFWs back in 2021.
The Pabahay program offers a variety of different housing options that OFWs can choose from depending on their needs. Some of these housing options are the one-story, two-story duplexes. You also get to choose between low-rise, medium-rise and high-rise condominium units.
These housing units have lot sizes that are up to 150 square meters and floor areas that are approximately 60 square meters. Most of these houses feature 2 bedrooms, 1 full bathroom, 1 kitchen, 1 living room and 1 parking space. When it comes to condominiums, the range in size is from 36 to 42 square meters.
Housing Options Under the Program:
- One-storey duplexes
- Two-storey duplexes
- Low-rise building condominium units
- Medium-rise building condominium units
- High-rise building condominium units
Who is Eligible?
To qualify for the OFW Pabahay Program, you must:
- Be an active OFW aged 65 or younger at the time of application.
- Be 70 years old or younger when your loan matures.
- Have an up-to-date NHA account, if applicable.
Former OFWs can also qualify if they provide proof of income and meet other requirements.
Required Documents
When applying for the TBB program, you’ll need:
- Completed Application to Purchase House and Lot Form
- Overseas Employment Certificate (OEC) or a work contract certified by the Department of Migrant Workers
- Certificate of Compensation from your employer or an income tax return
- Two valid government-issued IDs
- Birth certificate
- Marriage certificate (if applicable)
- Affidavit of Separation-in-Fact (if applicable)
How to Apply
Online Application:
- Visit the GEHP official website at gehp.nha.gov.ph.
- Click “How to Apply” and select “Overseas Filipino Worker” from the options.
- Fill out the application form, upload your documents, and submit.
In-Person Application:
- Download and fill out the OFW application form from the NHA website.
- Have the form notarized.
- Submit the form and other requirements to the nearest NHA office or regional office.
After submission, you will soon receive emails for updates. Once your application of approve, you will receive a Notice of Allocation which then allows you to schedule a turnover date for your new home.
Payment Options
There are three options in which OFWs can buy a home through the TBB program. These are as follows:
- Outright cash sale – you can directly purchase a home with a loan agreement from the NHA.
- Staggered Cash Payment – you can pay in 12 equal monthly installments without interest. If you miss a payment, then you will have to pay a penalty of 0.5%.
- Installment plan – you can apply for a housing loan via Pag-IBIG or Landbank.
Comparing Pag-IBIG and Landbank Housing Loans
Pag-IBIG and Landbank Housing are the two main housing loan providers in the country. Let us compare both so that you as an OFW can decide which one’s the right one for you.
- Loanable Amount – Pag-IBIG can make you loan up to 6 million pesos, while Landbank provides up to 80% of the home value.
- Loan Maturity – Pag-IBIG allows up to 30 years, while Landbank offers 15 to 20 years.
- Interest Rates – Pag-IBIG rates depend on the repricing period, while Landbank’s rates are variable.
Pag-IBIG Loan Application Steps:
Here are the steps you need to take in order to loan through Pag-IBIG:
- Prepare documents like the Housing Loan Application Form, proof of income, and property documents.
- Submit the application via Virtual Pag-IBIG or to a Pag-IBIG branch.
- Upon approval, submit the post-approval documents within 90 days.
- Loan release takes about 10 working days, with repayments starting one month later.
Landbank 3B Program Application
Here are steps you should take to loan through Landbank:
- Prepare documents such as your employment contract, property title, and tax receipts.
- Submit your application through Landbank’s online portal and follow the provided instructions.
Getting a Housing Loan
If you choose the installment plan, you have two main options: Pag-IBIG Housing Loan and Landbank’s Bahay para sa Bagong Bayani (3B) lending program. Both options have their own requirements, interest rates, and loan terms.
For example, Pag-IBIG allows you to loan up to ₱6 million with a maximum loan term of 30 years, while Landbank offers loans of up to 80% of the home’s value with terms ranging from 15 to 20 years. Interest rates vary depending on the lender and your chosen repayment period.
To apply for a loan, you’ll need to gather various documents such as proof of income, identification cards, and property details. Once you’ve completed the application process, the lender will review your application and, if approved, disburse the loan amount.
While these housing programs are designed for every Filipino regardless of where they work at, OFWs in particular will find these most useful as they are generally already set on achieving this goal. With the help of Landbank, Pag-IBIG and other agencies, public or private, offering housing programs, OFWs have a safe and effective way of having their own homes in the Philippines.