Pag-ibig Housing Loan Program

Want to own a house but your salary is barely enough to build one? Why not try Pag-ibig Housing Loan Program. With pag-ibig housing loan program, you can build your dream house without sacrificing your daily needs.

In today's world, living in a home we can truly call our own is both a need and pride. Especially if we have our own family, it is utterly hard to share a living room, kitchen, etc. with other families. But with Pag-ibig Housing Loan Program, two families don't need to crowd under one roof.

Do you have questions about this housing loan program? Take a look at the slides below to learn more about frequently asked questions.

Whether we are renting or living in your parent's house and seem to feel comfortable with it, nothing compares to have a house to our own name. We don't have to worry about what the future holds since nobody can send us away homeless or we don't have to agonize over our monthly rent payments.

Pag-ibig Fund knows our need. What's more, our capacity to pay our loan has already been figured out beforehand, that is why we are given options or modes of applying for a Pag-ibig housing loan and loan terms that suit our needs.

Two (2) modes of applying for a Pag-IBIG housing loan:

(a) Developer-Assisted - the developer assists the member in his/her housing loan application and
(b) Retail - the member applies directly to the Fund.

Below are the requirements to avail this housing loan program of Pag-ibig.

Eligibility Requirements

To qualify for a Pag-IBIG housing loan, a member shall satisfy the following requirements:

1. On Pag-IBIG Membership

· Must be a member under the Pag-IBIG I, Pag-IBIG II or Pag-IBIG Overseas Program (POP) for at least twenty-four (24) months, as evidenced by the remittance of at least 24 monthly contributions at the time of loan application.

· A member with less than the required number of contributions applying for a Pag-IBIG housing loan shall be allowed to make lump sum payment based on the mandatory monthly membership contribution rates (both EE and ER share) to meet the said requirement at point of loan application provided he has been a contributing member of the Fund for at least twelve (12) months. Lump sum payment of membership contributions shall be considered a single contribution for the applicable month as of the payment date.

· A member whose loan exceeds P500,000.00 shall be required to pay the upgraded membership contribution rates upon housing loan approval and onwards.

· A member who has contributed for at least two (2) years and whose loans exceed P500,000.00 shall be required to pay the upgraded contribution rates upon housing loan approval and onwards.

For purposes of satisfying the required two (2) years membership contributions, the member may opt to pay in lump sum any amount short of the said requirement. In addition, the period corresponding to the TAV applied earlier to an outstanding loan shall also be considered when counting the total number of monthly contributions, provided the remaining TAV after offsetting does not fall below the equivalent amount of two (2) years membership contributions.

2. Not more than sixty-five (65) years old at the date of loan application and must be insurable; provided further that he is not more than seventy (70) years old at loan maturity;

3. Has the legal capacity to acquire and encumber real property;

4. Has passed satisfactory background/credit and employment/business checks of the Pag-IBIG Fund;

5. Has no outstanding Pag-IBIG housing loan, either as a principal borrower or co-borrower;

However, should a co-borrower in a tacked loan signify an intention to avail of a Pag-IBIG housing loan for himself, he shall be allowed to do so provided the tacked loan is updated and the amount proportionate to his loan entitlement has been fully paid. Hence, the co-borrower shall be released from the original obligation and shall be allowed to avail of his own Pag-IBIG housing loan, subject to standard evaluation procedures.

6. Had no Pag-IBIG housing loan that was foreclosed, cancelled, bought back due to default, or subjected to dacion en pago, which shall include cases where the borrower is no longer interested to pursue the loan and surrenders the property;

7. Has no outstanding Pag-IBIG multi-purpose loan in arrears at the time of loan application. A member whose multi-purpose loan is in arrears shall be required to pay his arrearages over the counter to update his account.

» PROCESSING FEE

· P1,000 - upon filing of housing loan application with required documents (non-refundable)

· P2,000 – appraisal fee (upon filing of loan application, non-refundable)

· P2,000 – upon take-out (deducted from the loan proceeds)

» BASIC REQUIREMENTS (UPON LOAN APPLICATION)

1. Housing Loan Application with recent ID photo of borrower/co-borrower (if applicable) (2 copies, HQP-HLF-068/069)

2. Proof of Income (see details below)

3. One (1) valid ID (Photocopy, back-to-back) of Principal Borrower and Spouse, Co-Borrower and Spouse, Seller and Spouse and Developer’s Authorized Representative and Attorney-In-Fact, if applicable

4. Transfer Certificate of Title (TCT) (latest title, Certified True Copy). For Condominium Unit, present TCT of the land and Condominium Certificate of Title (CCT) (Certified True Copy).

5. Updated Tax Declaration (House and Lot) and Updated Real Estate Tax Receipt (photocopy)

6. Contract-to-Sell or similar agreement between the buyer and seller

7. Vicinity Map/Sketch of the Property

» REQUIRED DOCUMENTS PRIOR TO LOAN RELEASE

1. TCT/CCT in the name of the borrower/co-borrower/s (if applicable) with proper mortgage annotation in favor of Pag-IBIG Fund (Owner’s Duplicate Copy)

2. TCT/CCT in the name of the borrower/co-borrower/s (if applicable) (Certified True Copy) with proper mortgage annotation in favor of Pag-IBIG Fund (RD’s copy)

3. Updated Tax Declaration (House and Lot) and Updated Real Estate Tax Receipt (Photocopy) in the name of the borrower/co-borrower/s, if applicable

4. Loan Mortgage Documents

a. Loan and Mortgage Agreement duly registered with Registry of Deeds with original RD stamp (HQP-HLF-162/163)

b. Deed of Absolute Sale duly registered with Registry of Deeds with original RD stamp

c. Duly accomplished/notarized Promissory Note (HQP-HLF-086/087)

d. Disclosure Statement on Loan Transaction (HQP-HLF-085)

» OTHER APPLICABLE REQUIREMENTS

» INCOME DOCUMENT:

* For Locally Employed, any of the following:

a. Notarized Certificate of Employment and Compensation (CEC), indicating the gross monthly income and monthly allowances or monthly monetary benefits received by the employee

b. Latest Income Tax Return (ITR) for the year immediately preceding the date of loan application, with attached BIR Form No. 2316, stamped received by the BIR

c. Certified One (1) Month Payslip, within the last three (3) months prior to date of loan application

NOTE: For government employees, the Certified One (1) Month Payslip, within the last three (3) months prior to date of loan application, must be submitted together with CEC or ITR.

* For Self Employed, any of the following Proof/s of Income:

a. ITR, Audited Financial Statements, and Official Receipt of tax payment from bank supported with DTI Registration and Mayor’s Permit/Business Permit

b. Commission Vouchers reflecting the issuer’s name and contact details (for the last 12 months)

c. Bank Statements or passbook for the last 12 months (in case income is sourced from foreign remittances, pensions, etc.)

d. Copy of Lease Contract and Tax Declaration (if income is derived from rental payments)

e. Certified True Copy of Transport Franchise issued by appropriate government agency (LGU for tricycles, LTFRB for other PUVs)

f. Certificate of Engagement issued by owner of business

g. Other document that would validate source of income

* For Overseas Filipino Workers (OFW), any of the following:

a. Employment Contract

· Employment Contract between employee and employer; or

· POEA Standard Contract

b. Certificate of Employment and Compensation (CEC)

· CEC written on the Employer/Company’s official letterhead; or

· CEC signed by employer (for household staff and similarly situated employees) supported by a photocopy of the employer’s ID or passport

c. Income Tax Return filed with Host Country/Government

NOTE: If documents are in foreign language/s, English translation is required.

» ADDITIONAL REQUIREMENTS (if applicable only)

* Upon Loan Application

§ For OFW members

a. Special Power of Attorney (SPA) notarized prior to date of departure. For OFW member abroad, a SPA notarized by a Philippine Consular Officer, or SPA notarized by a local notary (of the country where the member is working) but duly authenticated by the Philippine Consulate.

b. The Fund may also require any or a combination of the following documents:

§ Payslip indicating income received and period covered

§ Valid OWWA Membership Certificate

§ Overseas Employment Certificate

§ Passport with appropriate visa (Working Visa)

§ Residence card/permit (permit to stay indicating work as the purpose)

§ Bank remittance record

§ Professional License issued by Host Country/Government

NOTE: If documents are in foreign language/s, English translation is required.

Insurance Coverage

a. Health Statement Form (Medical Questionnaire)

§ For borrowers over 60 years old

§ For borrowers up to 60 years old, if loans is over P2.0 M to P6.0 M

b. Health Statement Form (Medical Questionnaire) and Copy of the result of medical examination conducted prior to assignment overseas as required by the employment agency

· For OFW borrowers over 60 years old

§ For Purchase of Lot with Construction of House (PLCH)

a. Building Plans, Specification with Bill of Materials duly signed by the Licensed Civil Engineer or Architect

§ For Properties Purchased from a Developer/Corporation/ Association

a. License to Sell (Applicable to Developer only)

b. Secretary’s Certificate on the Authorized Signatory of the Developer/Corporation/Association

c. One (1) valid ID of the Corporate Secretary and Authorized Signatory of the Developer/Corporation/ Association (Photocopy, back-to-back)

* Prior to Loan Release

§ Surety bond (for properties that are subject to the lien imposed by Section 4 Rule 74 of the Rules of Court)

§ Collection Servicing Agreement with Authority to Deduct Loan Amortization or Post Dated Checks, if applicable

§ For Purchase of New Residential Unit only

§ Occupancy Permit

· For PLCH only

§ Occupancy Permit

§ Building Plans/Electrical/Sanitary Permits duly approved by the building officials

Housing Loan (Source: Wikipedia)

The most popular program benefit of the Pag-IBIG Fund offers assistance to its members by providing cheap financing for their housing needs. HDMF accomplishes this by working in partnership with the local Real Estate Developers and arranging affordable loans to real estate buyers (Pag-IBIG members).

The loan had a lower interest rate compared to the prevailing rate in the market and payable in longer terms. Pag-IBIG Fund offers a home loan at a low interest rate of 6% (for ₱400,000 loan) with a loan term of up to 30 years. A qualified member can get a maximum loan amount of up to ₱3 Million.