In response to the housing needs of the community, the Flexi-Home Loan Program is designed to help answer the various levels of financing needs of low and medium segments of the population. The program consists of short, medium and long term arrangements and covers both lot and housing acquisition.
Loan proceeds may be used for various purposes as long as the REM on the property to be acquired by the participant is used as the collateral.
- Purchase of lot
- Purchase of house and lot
- House construction
- Purchase of town house or condo unit
- House Renovation
1-2 years – 8.5% per annum
3-5 years - 9.5%
6-8 years - 10.5%
9 years above – based on prevailing market rates.
Terms and Conditions:
- Loan is to be secured by REM on the house and lot to be acquired by the participant.
- The term of the loan is flexible up to twenty (20) years depending on the capacity to pay of the participant.
- The participant is to put up an equity participation of not less than twenty percent (20%) of the cost of house and lot or their fair market value.
- Other terms and conditions regularly contained in REM of the bank in its usual lending program shall be applied.
Procedure of Loan Availment:
- Application for the housing loan may be done through any of the branches or other business offices of QCRB.
- The Branch will conduct its regular loan processing subject for approval.
- The housing unit maybe acquired under any of the following financing schemes:
- Outright purchase of an existing or finished house and lot in which case the loan is to be based on the appraisal of fair market value or purchase price whichever is lower.
- Lot pre-owned and construction of a new house in which case a complete building plan approved by the City or Municipality with cost and program of work is to be appraised by the bank to determine its feasibility. Construction may be done by the owner or through a contractor, in which case loan releases is based on percentage of completion.
Example of schedule of releases:
• Up to 50% of fair market value of lot provided the residual value is not less than the equity portion of the participant, upon execution and registration of REM.
• 40% completion of construction.
• 80% completion of construction.
• 100% completion and issuance of City or municipal of Occupancy Permit.
Each release will be covered by a separate Promissory Note which shall be consolidated with the final and last release. Accrued interest on the previous PNs will be deducted from the final release. Monthly amortization of the loan principal and interest starts one month after the final release.
- House and Lot purchase from the Owner/Developer of housing subdivisions where the house is to be constructed.
In this case, after the loan application is approved by the bank, the Buyer/Applicant enters into a contract of Construct and Sell Agreement with subdivision Owner/Developer.
For this purpose a Memorandum of Agreement or understanding may be executed between the Bank and the Owner/Developer for the continued partnership of the housing project.