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Re: Housing Benefits for Filipino Freelancers

Community Guru
Maria Marilyn M Member Since: Oct 27, 2010

I have a question if you don't mind. I've read numerous horror stories when it comes to Pag-ibig Housing Loan applications being declined. One of the common reasons is when the applicant is not yet qualified because he/she is lacking in terms of premium payment contributions made (number of years or months). So I assume that the number of contributions you've made were all accounted for, before you became a freelancer and afterwards right? 

Community Guru
Juvy Ann P Member Since: Oct 29, 2015

@Maria Marilyn M wrote:

I have a question if you don't mind. I've read numerous horror stories when it comes to Pag-ibig Housing Loan applications being declined. One of the common reasons is when the applicant is not yet qualified because he/she is lacking in terms of premium payment contributions made (number of years or months). So I assume that the number of contributions you've made were all accounted for, before you became a freelancer and afterwards right? 


I made a total of 93 contributions all in all, Marilyn, so yes my past contributions have been accounted for at the developer level.  I have been a Pag-IBIG member since 2003.  Being a self-paying member (due to the fact that I am a freelancer), I noticed that my contribution rate per month has increased but I am not equating this with my chances to have my loan approved.  As for horror stories, I guess these are only for people who do not have plan B.

Community Guru
Juvy Ann P Member Since: Oct 29, 2015

Plan B is for married Filipino freelancers.  If either the husband or wife is an Overseas Filipino Worker (OFW), there might just be some adjustments to be done as regards the details of the reservation agreement, in particular the ownership information.  So the housing loan application may be forwarded into either a Pag-IBIG Business category (for Filipino freelancers who are BIR-certified self-employed individuals) or Pag-IBIG OFW category.  At any rate and whoever gets to have the title of the property, BIR-registered Fillipino freelancers need to file quarterly and annual income and monthly percentage tax returns as scheduled. 

Community Guru
Maria Marilyn M Member Since: Oct 27, 2010

Thanks for the reply. I appreciate it. Aside from non-eligibility due to premium payments made, one other usual issue is the property availability. The loan seems to be mostly applicable only to select properties. Some developers accept bank loans and not Pag-ibig based ones. The properties are also often located in areas outside Metro Manila (Cavite in particular). 

 

I hope your loan turns out well so you can share encouraging updates. 

Community Guru
Juvy Ann P Member Since: Oct 29, 2015

Hi Marilyn,

 

I am quite familiar with in-house options.  It's actually another way to have a house as a freelancer.  Thanks for bringing that up.  An in-house buyer has to secure the following documentary requirements:

 

1. Certificate of Employment (in this case the Certificate of Earnings Report for freelancers)

2. Financial Statement of Business

3. Proof of Billing (Globe Internet bill may suffice for this purpose)

4. Any valid ID of the freelancer (preferably a government-issued ID)

5. ID pictures 1 x 1 (5 pcs.)

6. Latest ITR (orginal copy)

7.  Marriage Contract (for married freelancers)

8.  Birth Certificate (for single freelancers)

9.  Taxpayer Identification (TIN) Card

10. Post-dated Checks

Highlighted
Community Guru
Juvy Ann P Member Since: Oct 29, 2015

Updates:

 

Following the advice of the marketing specialist of the land developer, I have been submitting tax documents such as the Monthly Percentage Tax Return, BIR Form 0605 (for the renewal of registration), and annual ITR.  When I spoke with my broker, she told me that the earliest time possible for early move-in procedures will either be April or May, 2017.  As a consequence I had to make sure that my son gets to be enrolled early on at a school near our future home.  This is going to be a calculated risk since if we finally get to move in later than May, 2017 then we will have to adjust to the commuting schedules.  Anyway, he has been enrolled already after a thorough interview he had with his future teacher in Grade 1.

 

I just noticed that the pressure to come up with a tax return every month has been intense these past few weeks.  I am just grateful to my clients who continue to give me tasks and trust me with the Team App.  I think that more than having to own a house and lot, winning my clients' trust is like touching base with an earthly haven.  Furthermore, I can sense that my family's house-and-lot journey this year is also the journey of Filipino freelancers capable of dreaming and I am grateful to them who have suddenly shown interest in taxes and knocked at my door via PM option.

Community Guru
Juvy Ann P Member Since: Oct 29, 2015

Updates:

 

Yesterday, I received a confirmation notice from my sales agent that move-in procedures are definitely going to take place this year.

 

For those who are interested to know about the occupancy requirements, here are the details.

 

The housing must be on a TAKE-OUT status.  This means that the loan must be released first.

 

Miscellaneous fees such as the refundable occupancy bond (Php 1,000.00) and streetlights good for 3 years (Php 2,520.00).  Pag-IBIG buyers need not pay for MERALCO and water meter (Php 11,700.00) and garbage fee which is good for 3 years (Php 1,200.00).  Only those who are buying a unit using the in-house financing scheme will pay for miscellaneous fees amounting to Php 16,420.00 prior to occupancy.

 

Prior to occupancy, Pag-IBIG buyers must pay in advance for 1 month of Home Development and Mutual Fund (HDMF) amortization (which is roughly Php 6,000.00 in my case), submit the List of Corrective Works (a.k.a. punch list) and thirty-five (35) post-dated checks (PDC) for HDMF amortization.  The last requirement would be to fill up the Occupancy Permit form.

 

Thirty (30) working days from the date of complete compliance of requirements or the approval of occupancy, keys will be released or the unit will be turned over to the buyer.

 

As for the house improvement policy, Pag-IBIG buyers need to pay for a 3-month amortization for inside construction (such as for the installation of an air-conditioning unit) and 6-month amortization for outside construction (including the gate, mini garden, washing area, dirty kitchen and the like) plus the construction bond (which is refundable two weeks after refund application) amounting to Php 15,000.00.  House improvement fees must be accompanied with an application for construction.

 

This means, for instance, that the floor area can be made equal to the lot area.  Currently, there are provisions for a mini garden and dirty kitchen/washing area.

 

Amenities and utilities that are (or will be) present in the subdivision include a clubhouse, basketball court, parks and playground (and one can even go out into the main area of the subdivision and enjoy bicycle sweat-out exercises), streetlights, guard house and an entrance gate.  The place is quiet and cool as there are many trees in the area.  All streets are named after currencies of specific countries, the subdivision seems to be a village for bankers and the town is named after a tax collector who later became a saint.  It is near private and public schools, wet market, grocery stores, malls, man-made resorts, church, banks and other basic business establishments. It belongs to RDO 045 which means I won't have difficulty adjusting in terms of paying for my taxes.  Garbage collection happens on a weekly basis and waste segregation is solely the responsibility of each homeowner.

 

On top of the requirements mentioned above, move-in procedures are dependent on such factors as the security of the homeowners as well as that of the construction materials and workers assigned by the developer company.  It is most likely that the process will be executed by batch so as to achieve this goal.

 

By the way, here's how the model house unit looks like:

 

model_house_interiors.jpg

 

 

Frequent Visitor
Ella Joy V Member Since: Mar 13, 2017

Hi Juvy,

 

When you applied for a loan, did Pagibig ask you for an ID of the Upwork person who signed your income certificate?

 

I too am earning only via Upwork. And I submitted the certificates, monthly transactions, and client invoices as proof of income. However they are now asking me to provide the ID of the person who signed Upwork's Certificate of Earnings (in my case, it is Ms. Elizabeth Tse, the SVP of Operations). I asked Upwork's chat support but they won't provide it for security reasons. I explained to Pagibig but they insist that I provide it. Now I am confused what to do. Smiley Frustrated

Community Guru
Juvy Ann P Member Since: Oct 29, 2015

Hi Ella Joy,

 

Please do not do that. Upwork is not our employer.  We are the employers since we are self-employed individuals. You need to process your own financial statement of business.

Frequent Visitor
Ella Joy V Member Since: Mar 13, 2017

Yes, I explained to Pagibig staff that I am a freelancer and the certificate clearly stated that Upwork is not the employer. I've read other articles of Upworkers who got their Pagibig loan approved, and I've submitted everything that they submitted too --- 12 months vouchers, certifications, bank statements, etc. I am wondering why this staff wants the ID, and its impossible to get it. What else can I do? Smiley Frustrated