Question & AnswerQ&A (OWWA MEMORANDUM OF INSTRUCTIONS NO. 033, s.1993)
The main objective is to provide mechanisms that assist OCWs to acquire housing units on an individual or group basis, potentially leading to the creation of exclusive self-reliant communities of OCWs.
Eligible beneficiaries are OCWs who are members of OWWA and concurrently members of the Home Development Mutual Fund (HDMF), Social Security System, or the Government Service Insurance System.
OWWA acts as the marketing arm through its Overseas Centers, extending equity financing, certifying membership registrations, maintaining inventory of housing units, and coordinating all aspects of the program.
Requirements include the Pag-ibig Housing Loan Application form with photo ID, Income Tax Return or employment certification, Pag-ibig Premium Payment Certificate, marriage and birth certificates, residence certificates, pay slips, special power of attorney if applicable, loan eligibility certificate, and other documents requested by HDMF.
Interest rates vary by loan amount: 9% per annum for loans P150,000 and below; 12% for over P150,000 to P225,000; 16% for over P225,000 to P375,000; and 17% for over P375,000 to P500,000.
The OCW is obliged to pay interest on the equity financing from the date the check was issued until the whole amount is returned to OWWA.
A 2% monthly penalty charge is imposed on late payments.
Loans are secured by post-dated checks issued by the OCWs corresponding to their monthly amortization covering the entire loan term, payable to OWWA.
OWWA sends at least three registered demand letters; if unpaid, files estafa charges with the Fiscal's Office within 20 days after the third letter; followed by preliminary investigation, possible filing with RTC or MTC; and possible issuance of warrant of arrest if non-payment persists.
FILOW members earning below US$1,000 monthly are entitled to a maximum loan amount of P250,000; those earning more than US$1,000 monthly can avail of up to P500,000.