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RA 580 (Home Financing Act) Section 11

Section 11

SEC. 11. The Commission is authorized upon application by the mortgagee, to insure, in accordance with the provisions of this Act, any mortgage offered to it which is eligible for insurance as hereinafter provided and upon such terms as the Commission may prescribe (including advance on such mortgages during construction), if the mortgage covers property held by— The National Government, provincial, city or municipal governments, or government-owned or controlled corporations and agencies. Private corporations, associations, cooperative societies which, are legal agents of owner-occupants, or trusts formed or created for the purpose of rehabilitating slum or blighted areas, or providing housing for rent or sale, and which possess powers necessary therefor and incidental thereto, and which, until the termination of all obligations of the Commission under such insurance, are regulated or restricted by the Commission as to rents or sales, charges, capital structure, rate of return, and methods of operation to such extent and in such manner as to provide reasonable rentals to tenants and a reasonable return on the investment. The Commission may make such contracts with, and acquire for not to exceed one hundred pesos such stock or interest in, any such corporation, association, cooperative society, or trust as it may deem necessary to render effective such restriction or regulation. Such stock or interest shall be paid for out of the Fund, and shall be redeemed by the corporation, association, cooperative society, or trust at par upon the termination of all obligations of the Commission under the insurance. An individual owner or joint-owners. Such mortgages may cover the installation of improvements involving— A rental project not to exceed one hundred units and involve a principal obligation (including such initial service charges, appraisal, inspection, and other fees as the Commission shall approve) in an amount not to exceed one million pesos. A rental project not to exceed one thousand units and involve a principal obligation (including such initial service, charges, appraisal, inspection, and other fees as the Commission shall approve) in an amount not to exceed five million pesos. To be eligible for insurance under this section a mortgage shall— Involve a principal obligation not to exceed eighty per centum, for projects under subsection (b) (1) ; and not to exceed ninety per centum, for projects under subsection (b) (2), of the amount which the Commission estimates will be the value of the property or project when the proposed improvements are completed, including the land; the proposed physical improvements; utilities within the boundaries of the property or project; architect's fees; taxes and interest accruing during construction; and other miscellaneous charges incident to construction and approved by the Commission. Have a maturity satisfactory to the Commission but not to exceed twenty years from the date of the insurance of the mortgage under subsection (b) (1), and not to exceed thirty years from the date of insurance of the mortgage under subsection (b) (2).

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Other provisions in CHAPTER II

Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗ · Data as of 2026-07-04

CitationRA 580 (Home Financing Act) Section 11 (LawPlayer, data as of 2026-07-04)

Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).

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