PNB Los Angeles » Philippine National Bank » Your Global Filipino Bank

Home Loan Program

Own a Philippine Home Loan (OPHL) is a financing program unique to PNB. It allows Filipinos and non-Filipinos residing and working abroad an easy way to purchase residential real estate in the Philippines.

Features:

Purpose	Purchase of Lot, House & Lot, Condominium, Townhouse or Rowhouse House Construction or Home Improvement Refinancing of a Philippine Peso home mortgage loan Reimbursement of Acquisition or Construction Cost [Back to Top]
Eligible Borrowers	Filipinos residing and working abroad who have maintained their Filipino citizenship Natural-born Filipinos residing and working abroad who have lost their Filipino citizenship (limited to a maximum lot area of 1,000 sq.m. only) Foreigners or nationals of foreign countries but limited to the acquisition of condominium units only 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. [Back to Top]
Loanable Amount	Loans for lot purchase with proposed/ongoing construction/newly-built house, townhouse or rowhouse and condominium unit will be up to 80% of verified selling price of the property or as per Reservation Agreement/Contract to Sell entered into between the borrower and the seller/real estate developer if the property is acquired from a PNB-accredited project of a PNB-accredited developer or 80% of the appraised value (AV) for non-accredited projects. Loans for house construction will be up to a maximum of 80% of the AV of the lot and house to be constructed. For house improvement, it will be up to a maximum of 80% of the AV of the lot and of the bill of materials of the house to be improved/renovated. Loans for the purchase of lot and existing improvements which are no longer brand new (i.e. house, townhouse or rowhouse and condominium unit) will be up to a maximum of 80% of the AV of the real estate property to be acquired. Loans for lot purchase will be up to a maximum of 60% of the verified selling price of the property or as per Reservation Agreement/Contract to Sell entered into between the borrower and the seller/real estate developer if the property is acquired from a PNB-accredited project of a PNB-accredited developer or 60% of the AV for non-accredited projects. Loans for refinancing/take-out will be up to a maximum of 80% of the AV of the property to be financed or the outstanding principal balance, whichever is lower. [Back to Top]
Collateral	The loan shall be secured by any of the following: Real estate mortgage (REM) on the property being financed Standby Letter of Credit (SLC) if the host country’s rules and regulations do not allow a REM on the property to be financed. The SLC shall: (i) expire one month after maturity of the loan, (ii) be issued by PNB Head Office, (iii) be secured by the real estate mortgage on the property to be financed, and, (iv) be as prescribed by the PNB Legal Group Hold-out on deposit maintained with the Bank. The hold-out shall fully cover the outstanding principal and interest for a year and shall be backed by an unregistered REM which will be registered immediately in case of default or a clean exposure. [Back to Top]
Interest Rate	The following interest rates shall apply under the OPHL program: 7.50% fixed for 1 year 8.50% fixed for 5 years 9.00% fixed for 10 years [Back to Top]
Manner of Release	The proceeds of the loan may be released in Philippine Pesos or US Dollars in the following manner: Lump sum release for purchase of property, refinancing or reimbursement Staggered releases for construction or home improvement. There shall be a maximum of 4 drawdowns with the last drawdown upon 90% completion. Construction should be finished within one year. [Back to Top]
Repayment Scheme	Maximum of 20 years for house construction and purchase of house and lot, townhouse condominium unit, rowhouse or apartment unit Maximum of 10 years for purchase of lot or home improvement Repayment of your loan shall be in US dollars or the local currency where the overseas branch is located. This shall be paid directly to the overseas branch either through submission of post-dated checks or a debit arrangement. Amount of monthly amortization shall be adjusted upward or downward depending on the interest rate charged for a particular interest period. Payments commence one month after a lump sum loan release or one month after the initial loan release for house construction. Monthly amortization for house construction will increase as staggered releases are made. [Back to Top]
Insurance	Mortgage Redemption insurance equivalent to at least the amount of the loan shall be secured by the principal borrower prior to loan release and shall be renewed every year thereafter at an amount based on the outstanding loan balance. Fire insurance coverage for improvements on properties mortgaged, equivalent to the latest appraised value of the insurable property, shall be procured by the borrower. [Back to Top]
Standard Requirements	Duly accomplished loan application form Applicable processing/application and/or appraisal fee Photocopy of the Owner’s Duplicate Copy of the Title Lot plan with location/vicinity map certified by a geodetic engineer Latest tax declaration on land, and improvement (if applicable) Photocopy of passport Copy of bank and credit card statements Copy of marriage certificate (if applicable) If employed, copy of payslips and original certificate of employment indicating salary, position & length of employment If self-employed, copy of business registration certificate, income tax returns and audited financial statements for the last 3 years Other documents may be required for the evaluation [Back to Top]

Repayment Terms

Maximum of 20 years for a house and lot; 10 years for purchase of a lot only.
Repayment of your loan shall be in US dollars. Amount of monthly amortization shall be adjusted upward or downward depending on the interest rate charged for a particular interest period.
Payments commence one month after a lump sum loan release (for lot or house and lot package) or one month after the initial loan release for house construction. Monthly amortization for house construction will increase as staggered releases are made.
Monthly amortization payments will be made against a monthly statement of account which shall be sent approximately 2 weeks prior to each monthly due date.

Life Insurance

The life insurance requirement may be waived provided that the borrower’s equity is at least 20%. However, an optional life insurance policy equivalent to at least the amount of loan (based on diminishing balance) may be secured by the principal borrower from a PNB affiliate, Beneficial-PNB Life Insurance Co., Inc.

How to Apply?

Send a complete application package to PNB together with supporting documents and fees. This will include:
- Loan application which includes your Personal Financial Statement, Collateral Appraisal/Reappraisal Authorization, Credit and Financial Information Authorization and Declaration of Purpose Statement (for downloading from this website)
- Latest 2 years Federal Income Tax Returns with the corresponding W-2
- Latest two (2) months payslip
- Latest two (2) months Bank statements
NOTE: for self-employed applicants, 3 years income tax returns evidencing consistent profits will be required.
- In order to obtain a proper appraisal of the property, the following items should be obtained & forwarded to PNB:
  - Transfer/Condominium Certificate of Title (may still be in the name of seller)
  - Lot Plan certified by Geodetic Engineer
  - Location/Vicinity Map
  - Realty Tax Declaration
  - Reservation Agreement, Contract To Sell or Conditional Deed of Sale (if borrower has tendered a down payment)
  - For house construction, complete architects plan specification of the proposed house/project and detailed cost estimate e of the proposed house/project with detailed quantity take-off of each structure.
Upon receipt of the complete application package, a formal appraisal report will be requested through PNB Manila and PNB Los Angeles shall evaluate the credit worthiness of the loan applicant. Analysis will be conducted in accordance with existing credit standards, taking into particular consideration the applicant’s character, capacity to pay and stability of residence/employment.
Once the loan is approved by Head Office, the decision will be conveyed to the applicant in writing.
Upon final approval, legal documentation will be prepared. Loan related documents will be signed by the borrower in the U.S. Real estate mortgage and L/C related documents may be signed by the borrower in the U.S. or, an “Attorney-in-Fact” (AIF) in the Philippines. The mortgage and L/C related documents or the Special Power of Attorney appointing an AIF, will require authentication by the Philippine Consul.
Upon receipt by PNB Manila of all signed documents, the real estate mortgage is registered and annotated on the title (already in the name of the buyer), the standby L/C is issued and loan proceeds are released to the seller. Real estate property titles are kept at PNB Manila for safekeeping and copies are forwarded to PNB Los Angeles for the branch and buyer’s files.

A 1% origination fee will also be charged upon execution of all related documents prior to the release of the loan proceeds

Past Dues / Late Payments

All late payments (10 days or more after due date) shall be subject to a late payment charge equal to 5% of the late installment.

The Bank will attempt to collect on delinquencies for a maximum of 90 days during which a sequence of demand letters will be sent to the borrower. If no attempt is made by the borrower to contact the Bank and settle outstanding obligations, on the 90th day the Bank will draw against the Standby Letter of Credit collateralizing the loan. At this point the loan is transferred to the Philippines and booked as a 10 DAY PESO DEMAND LOAN subject to Philippine Peso rates and Peso Loan procedures. If still unpaid within the 10 day Peso Loan period, immediate foreclosure on the property will be implemented.

Estimated Monthly Payment Required

(Per $1,000.00)

Int. Rate	Monthly Paymt 10 Years	APR For 10 year Term	Monthly Paymt 15 Years	APR For 15 Year Term	Monthly Paymt 20 Years	APR For 20 yearTerm
7.00	11.62	7.328	8.99	7.241	7.76	7.194
7.25	11.75	7.590	9.13	7.493	7.91	7.446
7.50	11.88	7.841	9.28	7.745	8.06	7.698
7.75	12.01	8.093	9.42	7.997	8.21	7.950
8.00	12.14	8.344	9.56	8.249	8.37	8.203
8.25	12.27	8.596	9.71	8.500	8.53	8.454
8.50	12.40	8.848	9.85	8.752	8.68	8.707
8.75	12.54	9.099	10.00	9.004	8.84	8.959
9.00	12.67	9.351	10.15	9.256	9.00	9.211
9.25	12.81	9.603	10.30	9.508	9.16	9.463

Annual Percentage Rate

The Annual Percentage Rate (APR) is the percentage relationship of the total finance charges to the amount of your loan. It is a measure of the cost of credit, expressed as a yearly rate. It includes interest as well as other finance charges such as points, appraisal fee, Letter of Credit (LC) issuance fee, LC wire fee and notarial fee.

Example: Borrower’s loan is $60,000.00, payable in 10 years, and an Adjustable Rate (AR) of 7.75%. Prepaid finance charges are the following: Points - $600.00, Appraisal fee - $125.00, LC Issuance fee - $100.00, LC Wire fee - $40.00 and Notarial fee is $10.00. Annual Percentage Rate for this loan is 8.093%

Example: Borrower’s loan is $60,000.00, payable in 20 years, and an AR of 7.75%. Prepaid finance charges are the following: Points - $600.00, Appraisal fee - $125.00, LC Issuance fee - $100.00, LC Wire fee - $40.00 and Notarial fee is $10.00. Annual Percentage Rate for this loan is 7.950%.

Frequently Asked Questions

If I have already purchased a house and lot and currently paying a Philippine Peso mortgage in the Philippines, can I still avail of the “Own a Philippine Home Loan” ?
Yes. PNB’s Own a Philippine Home Loan” can be used to refinance existing Peso mortgages. Refinancing through PNB’s program will usually result in a lower interest rate and lower monthly amortization's.

We can refinance your existing peso mortgage loans up to 100% of the outstanding balance of the loan provided that the outstanding balance does not exceed 80% of the appraised value.
What if I am a Filipino citizen but my husband/wife is not? Are we eligible to purchase property with your loan program?
Yes. However, under Section 7, Article XII of the Philippine Constitution, foreigners may not acquire private land. Therefore, title to the property will be in the name of the Filipino spouse. For condominium units, the certificate of title may be in the names of both Filipino and foreigner spouses.
We want the house and lot to be in the name of our mother in the Philippines but we, her children, wish to borrow and pay the loan here in the U.S. Can we avail of your loan?
Yes. But your mother would have to sign the loan as a “Grantor of Collateral”. This means that although she is not a borrower on the loan and does not have to pay back the loan if her children default, she is authorizing the use of the property she owns as “collateral” and is fully aware of the risk of foreclosure on the property if her children do not repay the loan.
Is this loan open only to residents of the United States?
Yes
What if I am a temporary worker in the U.S. on a temporary working visa (H1/J1), can I purchase property under your program?
The answer to this shall be determined on a case to case basis, depending on the prospective stability of U.S. employment, the current and future assets of the borrower and other factors. In general, this program was created for those Filipinos and foreigners who wish to buy Philippine real estate and are PERMANENTLY working in the U.S. It is this stable stream of future dollar income which the bank shall look to as its primary source of repayment on the loan.
What if I am a former Filipino and have now become an American, what kind of property may I purchase under your program?
As a former Filipino citizen, you are entitled to purchase private real estate with a maximum of 1,000 square meters. Foreigners, on the other hand, or children of Filipino parents born in the U.S., are entitled only to purchase condominium properties wherein common areas are owned by the condominium corporation.

Contact Persons

Name	Email Address	Number	Extension
Rowena Tabuzo	This e-mail address is being protected from spam bots, you need JavaScript enabled to view it	323-802-8000	212

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