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Contract-to-Sell Financing Facility for Real Estate Developers (CTS Program)

The Contract-to-Sell Financing Facility for Real Estate Developers (CTS Program) is a credit assistance to provide Residential Real Estate Developers means to grow its housing portfolio and assist Key Shelter Agencies (KSAs) in addressing the housing requirements of the country.

Eligible Borrowers

    • DBP Accredited Real Estate Developers

Eligible Loan Purpose

Working capital requirements for the construction and completion of housing/condominium units of end-buyer’s account covering Developer’s receivables.

Eligible Projects

Residential projects with Total Contract Price (TCP) as follows:

    • Socialized Housing – P450,000.00 and below
    • Low-cost Housing – Above P450,000.00 to P3 Million
    • Medium-cost Housing – Above P3 Million to P4 Million
    • Open Market – Above P4 Million

Loanable Amount

Up to 80% of the Total Contract Price (TCP) of the CTS outstanding balance

Loan Tenor

    • Term Loan – up to fifteen (15) years or the remaining term of the CTS at the time of purchase, whichever comes first
    • Credit Line – Up to 360 days, subject to renewal for not more than 360 days as long as CTS is current and no incidence of delinquency

Interest Rate

Prevailing Market Rate

Grace Period

Up to 7 years, depending on the type of plantation

Collateral Security

Any or combination of the following:

  1. Real Estate Mortgage
  2. Chattel Mortgage
  3. Assignment of Insurance or guarantee coverage
  4. Assignment of supply contract/receivables
  5. Continuing Suretyship (JSS) or Co-makership
  6. Holdout on deposit
  7. For LGUs, Deed of Assignment of specified portion of IRA
  8. Other security arrangements acceptable to DBP.

Documentary Requirements

  1. Standard Requirements
    • Letter of Intent
    • DBP Application Form
    • Income Tax Returns for the last three (3) years with accompanying Audited Financial Statement
    • Latest interim financial statements (if applicable)
    • Approved subdivision plan
    • Certificate of Registration/License to Sell issued by HLURB
    • DENR Environmental Compliance Certificate or Certificate of Non-Coverage
    • Applicable Licenses and permits (DTI, SEC Registration, Development Permits, Mayor’s Permit)

 

  1. Specific Requirements for Corporations
    • Certified True Copy of Certificate of Registration (SEC)
    • Certified True Copy of Articles of Incorporation and By-Laws
    • Latest General Information Sheet (GIS) and/or additional documents to fully establish beneficial owners of the legal entity
    • Board Resolution duly certified by the Corporate Secretary, or equivalent document (e.g. Secretary’s Certificate), authorizing the loan and the signatory to sign in behalf of the entity

 

  1. Specific Requirements for Cooperatives
    • Certified True Copy of Certificates of Registration (CDA)
    • Certified True Copy of Articles of Cooperation and By-Laws
    • List of shareholders/cooperative membership and their shareholdings and/or additional documents to fully establish beneficial owners of the legal entity
    • Board Resolution duly certified by the Corporate Secretary, or equivalent document (e.g. Secretary’s Certificate), authorizing the loan and the signatory to sign in behalf of the entity

Download Brochure

For inquiries, feel free to contact the following numbers:

Erdie Leah Banzali
Program Development and Management II
(02) 818-9511 local 2349
elmbanzali@dbp.ph

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