Details about the LandBank Developer’s End-Buyers Financing Tie-Up Agreement
LANDBANK DEVELOPER’S END-BUYERS FINANCING TIE-UP – Here is a guide on the housing loan offer under this agreement set by the Landbank of the Philippines.
The LandBank of the Philippines, one of the biggest and reputable banking industries in the country, is one of those entities that aim to help as many Filipinos as it can attain affordable residential properties.
Thus, it launched different offers that include the LandBank Developer’s End-Buyers Financing Tie-Up Agreement that was crafted to help both the accredited developers of the bank and their clients.
The Developer’s End-Buyers Financing Tie-Up Agreement can finance any of the following:
- acquisition or purchase of:
- Lot
- House and Lot
- Townhouse
- Condominium Units
- house construction on a lot owned by the borrower
- acquisition/Purchase of a lot and the construction of a house
Who are qualified to apply for the loan offer? The bank has set eligibility criteria among the developers and the individuals or the end-buyers of properties. To qualify, the developer must meet the following eligibility requirements for application:
- Developers with existing credit lines/loans with LANDBANK
- Developers and their subsidiaries with no existing credit lines with LANDBANK must submit their duly Audited Financial Statements and must have passed the ” Accreditation process”
For the individual or end-buyer of the property to qualify, he/she must be availing a residential property from developers with existing credit lines with LandBank or developers and their subsidiaries with no existing credit lines with the bank but have passed the “Accreditation Process”.
With regards to the loanable amounts under the LandBank Developer’s End-Buyers Financing Tie-up Agreement, the government banking entity can finance up to 90% of the contract price including the following:
- property’s selling price,
- titling and taxes, and
- outstanding balance, whichever is lower
However, it is important to know that there are factors that the bank consider with regards to the amounts allowed for borrowing. Here’s a guide:
- For Socialized Housing
- Outstanding balance which includes selling price, titling and taxes
- Loanable amount should be within the paying capacity of the borrower where paying capacity is computed at
- For Government Employees
- Based on the amount as required by GAA, after housing loan amortization
- For Private Employees
- 30% of the gross monthly income for private employees
The loan term allowed by LandBank is up to 20 years. For socialized housing, the government bank allows up to 30 years of repayment.
