financing and prob comp

8/9/2019 Financing and Prob Comp

1/31

REAL ESTATE FINANCING

Methods of Financing Property Acquisition

1. Cash payment2. Swapping (payment in kind)3. Lease to own4. Formation of Cooperative (Community ortgage !rogram)". #oint $enture%. &oans'. nsta&&ment asis

Modes of rea estate !nancing

1. *+uity Finan,ing - uyer uses own funds2. et Finan,ing

• /anks and other 0nan,ia& institution

• n-house 0nan,ing

E"ects of Equity !nancing

1. !ur,hase dis,ounts given y se&&er to the uyer2. o periodi, 0nan,ia& o&igation3. o risk of fore,&osure4. Fund ,an e used for other higher pro0t-yie&ding ventures ,ompared to

prevai&ing interest rate to e paid y the orrower". Li+uidity (avai&ai&ity of ,ash)

E"ects of #e$t%Financing

1. !eriodi, 0nan,ia& o&igations2. isk of fore,&osure3. Funds ,an e used for other higher pro0t-yie&ding ventures4. Li+uidity". !roperty pur,hased may e used as a ,o&&atera& of ortgagor to se,ure

&oan from other 0nan,ing ,ompany

%. nterest rate might soar if there is a surge in ination rate or if peso

depre,iates signi0,ant&y

&RE# FLAGS' (N REAL ESTATE L(ANS


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1. ua&i0,ation of ortgagora. esiden,y. 5ge,. Civi& Status

d. Finan,ia& Capa,itye. o,uments avai&ai&ity (i.e. S!5)f. Cash F&owg. epository ankh. 6overnment 0nan,ing memership

2. ua&i0,ation of ortgagee1. Finan,ia& stai&ity2. 5ppraisa&3. 7ime&ine

4. nterest rate". Finan,ing s,heme

3. ua&i0,ation of Co&&atera&a. Lo,ation. 8ind9type,. Co&&atera& va&ued. eve&oper9Se&&ere. 7ime&ine (do,umentation)

4. Compensation (pra,titioner)

T)E *NIFIE# )(ME LEN#ING PR(GRAM +*)LP,

5 home-orrowers 0nan,ing program of the government with &ong-termfunds prin,ipa&&y provided y the So,ia& Se,urity System (SSS) and6overnment Servi,e nsuran,e System and :ome eve&opment utua& Fund(!ag-iig)Muti%-indo. Lending Syste/ for the *)LP

5 modi0ed system under ;:L!< wherey housing &oan may ee=tended through other ,onduits &ike anks and 0nan,ia& institutions< insteadof the former ;:L! system uti&i>ing ?ust a sing&e window.SSS0GSISLoan !urpose@

• Constru,tion of a new house or dwe&&ing units


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• !ur,hase of a &ot and ,onstru,tion thereon of a new house or dwe&&ing

unit

• !ur,hase with assumption of mortgage of an e=isting residentia& unit

previous&y 0nan,e under ;:L!

• !ur,hase of residentia& unit

/orrowerAs *&igii&ity

• 5n a,tive memer and in good standing

• :as not avai&ed of any housing &oan

• oes not own residentia& unit in a ,apa,ity as so&e owner or ,o-owner

Loan !a,kageLoan 5mount (house and &ot) nterest ate per annum;p to 1B


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MEM1ERS)IP

1. andatory emership

• *mp&oyers and emp&oyees ,overed y SSS96SS

• Fi&ipinos emp&oyed y foreign-ased emp&oyers whether they aredep&oyed here or aroad

2. $o&untary emership

• pen to individua&s 1B to %" years o&d< provided< they ,omp&y

with the set of ru&es of !ag-ig in,&uding the amount of

,ontriution and s,hedu&e of payment (in,&udes dai&y wage

earners)

Eigi$iity Require/ents

7o +ua&ify for a !ag-/6 housing &oan< a memer sha&& satisfy the fo&&owingre+uirements@

1. n !ag-/6 emership

ust e a memer under the !ag-/6 < !ag-/6 or !ag-/6verseas !rogram (!!) for at &east twenty-four (24) months< aseviden,ed y the remittan,e of at east 34 /onthy contri$utions atthe ti/e of oan appication5

5 memer with &ess than the re+uired numer of ,ontriutionsapp&ying for a !ag-/6 housing &oan sha $e ao.ed to /a6e u/psu/ pay/ent ased on the mandatory month&y memership,ontriution rates (oth ** and * share) to meet the said re+uirement atpoint of &oan app&i,ation provided he has een a contri$uting /e/$erof the Fund for at east t.e7e +83, /onths. Lump sum payment of memership ,ontriutions sha&& e ,onsidered a sing&e ,ontriution for theapp&i,a&e month as of the payment date.

5 memer whose &oan e9ceeds P:;;;, years od at oan /aturityH

3 :as the &ega& ,apa,ity to a,+uire and en,umer rea& propertyH


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4 :as passed satisfa,tory a,kground9,redit and emp&oyment9usiness,he,ks of the !ag-/6 FundH

" :as no outstanding !ag-/6 housing &oan< either as a prin,ipa&orrower or ,o-orrowerH

:owever< shou&d a ,o-orrower in a ta,ked &oan signify an intention toavai& of a !ag-/6 housing &oan for himse&f< he sha&& e a&&owed to doso provided the ta,ked &oan is updated and the amount proportionateto his &oan entit&ement has een fu&&y paid. :en,e< the ,o-orrowersha&& e re&eased from the origina& o&igation and sha&& e a&&owed toavai& of his own !ag-/6 housing &oan< su?e,t to standard eva&uationpro,edures.

% :ad no !ag-/6 housing &oan that was fore,&osed< ,an,e&&ed< oughta,k due to defau&t< or su?e,ted to da,ion en pago< whi,h sha&&in,&ude ,ases where the orrower is no &onger interested to pursue the

&oan and surrenders the propertyH

' :as no outstanding !ag-/6 mu&ti-purpose &oan in arrears at the time of &oanapp&i,ation. 5 memer whose mu&ti-purpose &oan is in arrears sha&& ere+uired to pay his arrearages over the ,ounter to update his a,,ount.

B /orrower who is a ,o-orrower in a ta,ked &oan (3nd degree $y

consanguinity)

• Sha&& e a&&owed to avai& of &oan for himse&f provided

a. 7he ta,ked &oan is updated. 7he amount of &oan proportionate to his &oan entit&ement has

een fu&&y paid

)(*SING L(AN A2AILMENT

7his housing &oan program grants opportunities to !ag-/6 Fund memers toavai& of housing &oans to 0nan,e any one or a ,omination of the fo&&owing@

1. !ur,hase of a fu&&y deve&oped &ot not e=,eeding 1


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5n a,+uired asset< whi,h is disposed of through sea&ed pu&i,idding< negotiated sa&e< the ent-to-wn !rogram< or theIagaang !aahay< isenteng /uhayJ !rogram.

3. Constru,tion or ,omp&etion of a residentia& unit on a &ot owned y the

memerH

4. :ome improvement< i.e. any a&teration in an e=isting residentia& unitintended y a homeowner to e a permanent integra& part thereof<whi,h wi&& enhan,e its durai&ity and materia& va&ueH

". e0nan,ing of an e=isting mortgage with an institution a,,epta&e tothe Fund< provided that@ 7he &oan is not in defau&t within 12 months prior to the date of app&i,ationH 7he said &oan has a repayment history of at &east two (2) years with the

origina& mortgagee

%. Comination of &oan purposes< whi,h sha&& e &imited to the fo&&owing@

!ur,hase of a fu&&y deve&oped &ot not e=,eeding 1


7/31

Kindow MM the deve&oper assists the memer ut does not oGer anyuya,k guaranteeKindow the memer app&ies dire,t&y to the !ag-ig Fund

)(*SING L(AN PR(CE#*RE

1. 5ttend the !ag-iig housing &oan ,ounse&ing2. Fi&e !ag-ig housing &oan app&i,ation (Form !:L5F) with re+uired

do,uments and emership Status $eri0,ation S&ip (S$S)3. !ro,essing fee

! 1


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f. /ank Statements or passook for the &ast 12 months ( in ,asein,ome is sour,ed from foreign remittan,es< pensions< et,.)

g. Copy of Lease Contra,t and 7a= e,&aration (if in,ome is derivedfrom renta& payments)

h. Certi0ed 7rue Copy of 7ransport Fran,hise issued y appropriategovernment agen,y (L6; for tri,y,&es< L7F/ for other !u&i, ;ti&ity$ehi,&e or !;$s)

i. Certi0,ate of *ngagement issued y owner of usiness

?. ther do,ument that wou&d va&idate sour,e of in,ome

3.3 For verseas Fi&ipino Korkers (FKs)< any of the fo&&owing@

k. *mp&oyment Contra,t (with *ng&ish trans&ation if in foreign&anguage)

&. rigina& *mp&oyerAs Certi0,ate of n,ome (with *ng&ishtrans&ation if in foreign &anguage). f do,ument sumitted is photo,opy<it sha&& e du&y va&idated and ,erti0ed9initia&ed y :F nformationN,er assigned in the ,ountry where the memer works

m. ther !roofs of n,ome< whether origina& or photo,opy< sha&& edu&y va&idated and ,erti0ed9initia&ed y :F nformation N,erassigned in the ,ountry where the memer works

4. !hoto,opy (a,k-to-a,k) of one (1) va&id of !rin,ipa& /orrower andSpouse< Co-/orrower and Spouse< and 5ttorney-n-Fa,t< if app&i,a&e. 7hesame must e presented during the ,ondu,t of orrowerAs va&idation.

". 5uthori>ation to Condu,t9Credit /a,kground nvestigation

%. For FK memers< Spe,ia& !ower of 5ttorney notari>ed prior to date of departure or du&y ,erti0ed and authenti,ated y the !hi&ippine *massy orConsu&ate in the ,ountry where the memer is staying< if aroad

'. nsuran,e Coverage

a. :ea&th Statement Form (edi,a& uestionnaire)

FK memers over % years o&d

Loans over !2. to !3. and for orrowers aged up to% years o&d


9/31

. :ea&th Statement Form (edi,a& uestionnaire) and Fu&& edi,a&*=amination

/orrowers over % years o&d

B. arriage Contra,t (For a&& married orrower9s< ,o-orrower9s< spouse


10/31

,. !ur,hase of Lot and Constru,tion of :ouse< Constru,tion of :ouse< :ome mprovement

1. /ui&ding !&ans< Spe,i0,ation and /i&& of ateria&s du&y signed y theLi,ensed Civi& *ngineer or 5r,hite,t

)(*SING PR(GRAMS

1. I65/5O !5/5:5OJ !rogram opportunity to restru,ture &oan

*&igi&e 5pp&i,ants(I6aay !aahayJ !rogram)

e&in+uent housing &oan orrowers or insta&&ment uyers< or those who arein arrears for at &east three (3) months in the payment of their housing

&oan o&igations with the Fund and sha&& in,&ude the fo&&owing@

a. 7hose who +ua&ify for pena&ty ,ondonation under Se,tion 2 of 5 B"1<i.e< orrowers who have not yet avai&ed of any pen,on program fromany government 0nan,ia& institution or agen,y invo&ved in the ationa&She&ter !rogram.

. 7hose who +ua&ify for pena&ty ,ondonation under Se,tion 3 of 5 B"1<i.e.< orrowers with an annua& in,ome of not more than !3


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sha&& e su?e,t to a 24-month seasoning period< for purposes of ,onversion< re,koned from date of approva& of &oan restru,turing.

f. e&in+uent orrowers whose &oan terms have e=pired< provided thatthe orrowers are not eyond age % at the time of app&i,ation.

g. :eirs of de,eased housing &oan orrowers with unpaid &oan a&an,eafter app&i,ation of the pro,eeds of the ortgage edemptionnsuran,e ().

h. :eirs who have een paying the outstanding a&an,e or haveprevious&y avai&ed of a &oan restru,turing program.

i. Su,,essors-in-interest of !ag-/6 housing &oan orrowers< hereinde0ned as individua&s who have assumed the origina& mortgage assupported y &ega& do,uments.

?. 6roup Land 5,+uisition and eve&opment (6L5) and other:omeownersA 5sso,iation (:5) a,,ounts.

2. So,ia&i>ed and &ow-,ost Condonation program opportunity to restru,ture

&oan y ,ondonation of pena&ties3. Iagaang !aahay< isenteng /uhayJ !rogram a,+uired assets

n ,e&eration of the ationa& She&ter onth &ast ,toer 2% and in,omp&ian,e with emorandum Cir,u&ar o. 112 signed y !resident

6&oria a,apaga& 5rroyo< the Fund imp&emented the Iagaang!aahay< isenteng /uhayJ !rogram.

;nder this program< the FundAs a,+uired assets are put up for sa&e<initia&&y to government emp&oyees< at redu,ed rates. is,ounts of 1"Eand 2E are given to interested uyers who wi&& pur,hase propertiesthrough housing &oan and through ,ash payment< respe,tive&y. 5nadditiona& dis,ount of "E is granted to the uyers if the properties theyare a,+uiring are i&&ega&&y o,,upied. /uyers who are opting to paythrough housing &oan en?oy %E interest rate for the entire term of the&oan.

4. !5 for ?oint venture

C(MP*TATI(N (F L(ANA1LE AM(*NT +housing oan,1. 5,tua& need


12/31

2. Co&&atera& va&ue if with uya,k guarantee without

uya,k

4


13/31

isks

• on-,omp&etion of pro?e,t or deve&operAs defau&t

• n the event of uyerAs defau&t

• /ank or 0nan,ing institution ,&osure

• eve&opers are undertaking +uasi-anking fun,tions

• mpa,t on 0nan,ia& market

Mar6et Reference Guideines on Contract to Se FinancingFormu&ated y the /ankerAs 5sso,iation of the !hi&s. (/5!)< ura& /ankerAs5sso,iation of the !hi&ipinnes (/5!)< Chamer of 7hrift /anks (C7/) in,oordination with /angko Sentra& ng !i&ipinas (/S!)

?e,tives@

• !rudentia& thrust of the /S! to strengthen ,redit underwriting pra,ti,es

for rea& estate transa,tions

• /a&an,e etween stai&ity and deve&opment

• !revent e=,esses that may &ead to 0nan,ia& ,risis

• itigate any potentia& easing of ankAs ,redit standard under g&oa&

regime of &ow interest rate

8ey *&ements1. 5,,reditation of oth rea& estate deve&opers and their spe,i0, pro?e,t2. *&igii&ity of homeuyers who ,an avai& of C7S 0nan,ing3. /ankAs risk management system

CAPITAL STR*CT*RE5SS;!7 @ C*75 C5S: FLK

5/C Corp. has 1 outstanding shares of sto,ks with a market pri,e of!1. per share. n this ,ase < the 0rmAs va&ue is $P* ($a&ue P *+uity) P!1


14/31

ination and ta=es< 5/C Corp. is ,ertain that its rate of return is 1"E. Khatis the est ,apita& stru,ture to ma=imi>e its rate of return.5ssuming further that 5/C Corp. is ,onsidering to mi= 2"E det and '%Ee+uity su,h that the tota& money raised remains ,onstant at !1


15/31

7he Community ortgage !rogram (C!) aims to improve the &iving ,onditions ofhome&ess and underprivi&eged ,iti>ens y providing them aGorda&e 0nan,ing withwhi,h they ,an se,ure tenure on the &and they o,,upy.

7he C! is a mortgage 0nan,ing program whi,h assists &ega&&y organi>edasso,iations of residents of &ighted or depressed areas to own the &ots they o,,upy<

providing them se,urity of tenure and eventua&&y improve their neighorhood andhomes to the e=tent of their aGordai&ity.

7he ma=imum &oan entit&ement of individua& memers wou&d e as fo&&ows@

a=imum Loan 5mount!;!S* etro ani&a9:;5 ther 5reas 1. Lot 5,+uisition ;ndeve&oped ! D


16/31

7he ,ommunity has een in e=isten,e for 0ve (") yearsH B"E of the tota& numer ofmemers shou&d have a residen,y of " yearsH

at &east B"E o,,upan,y rate at the time of app&i,ation and 1E after two (2) yearsfrom &oan re&ease

T a=imum of 2 ene0,iariesT 1E appraisa&

(FF%SITE:omogenous group &iving outside the pro?e,t area ut has to e re&o,ated due toany of the fo&&owing reasons@

/ene0,iaries &iving in danger >ones9areasH /ene0,iaries aGe,ted y government infrastru,ture pro?e,tH and /ene0,iaries with threat of evi,tion or a,tua& e?e,tment thru a ,ase9,ourt orderT a=imum of 2 ene0,iariesT 1E appraisa&

CMP L(AN C(LLATERAL 7he &and to e a,+uired y the Community 5sso,iation (C5) sha&& serve as the C!&oan ,o&&atera&< and wi&& e a,,epta&e if the fo&&owing ,riteria are met@1. 7he tit&e to the &and is free from a&& &iens and en,umran,es at the time of re&easeof the C! &oanH2. 7he &and is not ,&assi0ed as agri,u&tura&H3. 7he &and is not within environmenta&&y-,onstrained9 ha>ardous or high-risk areasas ,erti0ed y the * and the ,on,erned &o,a& government unitH4. 7he &and has a road right of way or an a,,ess road &ot to a ,ity< muni,ipa& orarangay roadH and

". 7he &andowner shou&d have the &ega& ,apa,ity to se&& or transfer the su?e,tproperty for &oan ,o&&atera& under the C!.

1(RR(-ERS 7enants9ene0,iaries sha&& form and register a C5< whi,h entity sha&& orrow andinitia&&y own and mortgage the &and. ndividua& ene0,iariesA right over the &and andeventua& ownership of the &ot is a,hieved through a Lease !ur,hase 5greement(L!5) with the C5.

ELIGI1ILIT (F CMP 1(RR(-ERS1. Fi&ipino ,iti>en< of &ega& age (1B) at the time of the &oan app&i,ation and sha&& note more than % years o&d upon &oan re&easeH2. Certi0es under oath that he9she has not een a re,ipient of any C! &oan or othergovt. housing programs. oes not own or ,o-own a rea& property and is not aprofessiona& s+uatter as de0ned in 5 '2'DH3. ust e a stru,ture owner< a renter or a sharer at the site.#ELINB*ENC 0 #EFA*LT

5 C5 a,,ount is ,onsidered in defau&t if it is not up to date with its &oan amorti>ationpayments e+uiva&ent to three months.


17/31

PENALTIESn ,ase of non-payment of month&y amorti>ations on the due date (one month afterre&ease of the &oan)< the C5 sha&& pay a pena&ty e+uiva&ent to de&ay. INS*RANCE

For the duration of the &oan< there sha&& e a ortgage nsuran,e on the &ives ofthe prin,ipa& orrowers as identi0ed in the aster List of emers on a year&yrenewa&e term asis. 7he insuran,e premiums sha&& e in,&uded in the month&yamorti>ations of the memers.

S*1STIT*TI(N (F 1ENEFICIARIES 0 F(RECL(S*RE

7he aster &ist of memers sumitted as part of the C! &oan app&i,ation aredeemed 0na& and may not e su?e,t to sustitution during &oan app&i,ationpro,essing period.

5 memer may e sustituted due to the fo&&owing@1. 5 memer is in defau&t in the payment of his9her share in the month&yamorti>ation of the C5 &oanH and2. 5 memer vo&untari&y waives his9her rights to the a&&o,ated &ot9property in favorof the C5.

enters or sharers in the pro?e,t sites sha&& e preferred or prioriti>ed in thesustitution pro,ess.

7he C5 sha&& e responsi&e for the sustitution of the memer without pre?udi,e tothe right of S:FC to dis+ua&ify sustitute memers if they fai& to meet the+ua&i0,ations of a memer or if there is proof of misrepresentation y the C5

oN,ers.

C(MM*NIT M(1ILIERS +CMP%M,

5,,redited C!-s are tasked to assist informa& sett&ers in organi>ingthemse&ves into C5s.

C!-s may either e any government entity< non- government organi>ations(6) and !eop&eAs rgani>ations (!) and must possess the needed ski&&s toorgani>e ,ommunities< do,ument C! pro?e,t app&i,ations and provide a,,ess toother government agen,ies invo&ved in the program.

C!-s sha&& e entit&ed to a servi,e fee e+uiva&ent to two per,ent (2E) of the&oan amount or !1


18/31

1. r. So ought a ,ommer,ia& &ot with an area of 4 s+m fof

12ations with an

interest rate of 12E per annum (amort fa,tor is .D3113). 5fter paying

four (4) month&y amortai>ation< he made a ki&&ing in the sto,k market

and thus de,ided to pay oG the remaining prin,ipa& a&an,e. Compute

the fo&&owing@a. 7he &ast payment he made to pay oG the remaining a&an,e. 7ota& interest paid for four (4) month&y amorti>ation

2. s aria ought a property at !B


19/31

%. 5 ,ommer,ia& ui&ding has the fo&&owing measurements@ 6round oor

is 3m = 2"mH me>>anine is 3E sma&&er than the ground oorH 2 nd

oor is B" s+m sma&&er that the ground oorH 3rd oor is U igger than

the me>>anine. Compute the tota& oor area of the ui&ding.

'. 5/C ea&ty Corporation owns two ad?oining par,e&s of &and. Lot 1 with

1


20/31

1. 5 prospe,tive uyer of a house and 3 s+m. Lot ,onsu&ted his

ar,hite,t and advised that the present ,ost to dup&i,ate the house is

!3


21/31

f ,orner inuen,e is 1"E< topographi, va&ue is "E and p&ottage is

1E< determine the fair market va&ue of the property.

1". 5 re,tangu&ar &ot has an area of 1


22/31

e. 7ransfer ta= if at '"E of 1Ef. *stimated registration fee if it is ."E of se&&ing pri,e

2. 5 ,ertain rea& estate property was va&ued and assessed y theassessorAs oN,e in the fo&&owing amount and rate

8ind of property arket va&ue 5ssessment ate of S*F Leve& asi, ta= 7a= rate

Land "


23/31

wou&d e the fra,tiona& share of the heirs that wi&& appear in the new

tit&eQ

24. 5 eed of Sa&e with ortgage was e=e,uted invo&ving a tota&

pri,e of !3.". 7he sum of !1 was paid in ,ash and the remainderwas se,ured y a mortgage on the same property y the uyer.

Compute the do,umentary stamps on sa&e and do,umentary stamps

on mortgage

2". 5fter " years the fair market va&ue of the &and owned y r. Sy is

!4". f the appre,iation va&ue is 19B of the va&ue efore ad?ustment<

,ompute the fo&&owing@a. $a&ue efore ad?ustment

. 5ppre,iation va&ue,. 5ppre,iation rate

2%. r. 7an ought a &ot for !%


24/31

a. et se&&ing pri,e. 6ross se&&ing pri,e,. Capita& gain ta=d. o,umentary stamps on sa&ee. 6ross ,ommission to e share y rokers

2D. 5/C ea&ty Corporation < a sudivision deve&oper a,+uired a "-

he,tare raw&and for pro?e,t deve&opment. Kith the fo&&owing data and

,onditions given@

• aw&and ,ost 1


25/31

,. nsuran,e premium of !D


26/31

a. :ow many months gra,e period is r. Chen entit&edQ. :ow mu,h is his ,ash surrender va&ue

3'. r. 6o upon due noti,e< stopped payment of his regu&ar month&y

amorti>ation e,ause the sudivision ownerAs fai&ure to deve&op thesudivision. :is payments a&ready amount to !"


27/31

42. 5 orrower mortgaged his rea& estate property for !1


28/31

,. 3ed portion of the pro,eeds of the sa&eQ

"1. Compute the fair market rent per s+uare meter per month of a

"-s+uare meter &and with a fair market va&ue of !12


29/31

"2. uring the year 212 < the tota& re,eipt from the &ease of 3

residentia& units is !2


30/31


31/31

financing and prob comp

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