HOUSING CREDIT GUARANTEE PROGRAMS
PHILGUARANTEE provides guarantees and tax/fiscal incentives to Banks, Real Estate Developers and Other Financial Institutions which grant loans, credits and financing for housing acquisition and development. The Corporation provides risk cover on the outstanding principal and interest yields up to 11%. These guaranteed housing loans and investments are exempt from all taxes up to 11%.
BENEFITS OF HOUSING GUARANTEE
UNSECURED SMALL HOUSING LOANS
CREDIT GUARANTEE FACILITY
Covers loans to housing developers for their permanent working capital and development expenses. A pool of Contract-to-Sell (CTS) receivables and its underlying properties shall serve as collateral to the loan. PHILGUARANTEE shall pay the defaulting accounts from the pool of CTS receivables.
CASH FLOW GUARANTEE (CFG)
ON ASSET-BACKED SECURITIES
Covers securities or financial instruments for financing of housing developments. PHILGUARANTEE shall pay the defaulting accounts from the pool of assets such as receivables from loans/mortgages and/or real estate properties backing up the securities.
CASH FLOW GUARANTEE ON SOCIALIZED HOUSING LOANS
Covers socialized housing loans extended by the Social Security System, the Government Service Insurance System, Home Development Mutual Fund or Pag-IBIG and their accredited financial institutions. The facility is one of the components of the Abot-Kaya Pabahay Fund (AKPF), which is under the trusteeship and administration of PHILGUARANTEE.