How OFWs can qualify for affordable homes in the Philippines

Dubai: Overseas Filipino workers (OFWs), including those based in the UAE, can now qualify for socialised housing units in the Philippines regardless of their monthly income, following an expansion of the government’s flagship housing programme.

The move has come after Philippine president Ferdinand Marcos Jr. has directed authorities to make housing more accessible under the Expanded Pambansang Pabahay Para sa Pilipino (4PH) programme.

According to Presidential Communications Office undersecretary and Palace press officer Claire Castro, the policy ensures that affordable housing becomes “more accessible, faster, and within reach” for all Filipinos, especially for OFWs referred to as modern-day heroes.

No income cap for OFWs

The Department of Human Settlements and Urban Development (DHSUD), in coordination with the Pag-IBIG fund or the home development mutual fund, has confirmed that OFWs are exempt from the monthly salary cap to qualify for socialised housing.

In addition to the exemption, OFWs have been included as priority beneficiaries under the expanded 4PH programme.

"The government continues to strengthen and expand the 4PH programme across the country to turn into reality the dream of many of our fellow citizens, to have a home of their own to return to," said Castro in Filipino.

Lower monthly payments

Under the programme, qualified beneficiaries, particularly those in the working class, can avail of socialised housing units, including both horizontal and vertical developments, through the Pag-IBIG fund financing.

In a statement, DHSUD has noted that the loans come with subsidised interest rates of as low as 3 percent per annum for up to 10 years, among the lowest in the market today.

This translates into significantly reduced monthly amortisations. For example, a horizontal unit priced at ₱850,000 would require a monthly payment of around ₱3,583, compared to the standard ₱5,233. A vertical unit valued at ₱1.5 million would cost about ₱6,234 per month, down from ₱9,235.

Moreover, the DHSUD has revealed that more than 10,000 families have already benefited from these subsidised rates.

Eligibility rules

Under Pag-IBIG fund circular no. 473, OFWs may apply for housing under the 4PH programme provided that they are active Pag-IBIG members and first-time homebuyers.

Applicants must not be older than 65 at the time of application and must be insurable, with the loan maturing before they reach the age of 70.

Meanwhile, Castro has highlighted that OFWs have welcomed the development and the government will continue strengthening and expanding the 4PH programme across the country to make home ownership a reality for more Filipinos.

With sustained reforms, the DHSUD has eyed "to making housing more inclusive, affordable, and responsive" to Filipinos, whether at home or overseas, and that no one is left behind in the pursuit of a dignified life.