Today we start a 3-part Pag-IBIG series that aims to give you guidelines and some pointers about Pag-IBIG (Home Development Mutual Fund) housing loans and how to avail of this facility for financing your home.    This first installment in the series talks about the valid loan purposes and who are qualified to avail of a housing loan.

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As per the Amended Guidelines for Pag-IBIG’s End-User Financing Program, a housing loan may be availed of by qualified members to finance the following:

1.  Purchase of a fully developed lot located in a residential area which is not less than 24 square meters but not more than 1,000 square meters;

2.  Purchase of a residential house and lot, condominium unit or townhouse, inclusive of parking slot and which may be :

a.  brand new or old;

b.  a property mortgaged with the Pagibig Fund;

c.  an acquired asset; or

d.  adjoining houses and lots/townhouses/ row houses/condominium unit

3.  Construction or completion of a residential unit on a lot owned by the member

4.  Home improvement, i.e. any alteration in an existing residential unit intended by a homeowner to be a permanent integral part of the property, which will enhance its durability and material value;

5.  Refinancing of an existing mortgage with an institution acceptable to the Fund, provided that, the account reflects a perfect repayment history of at least one (1) year prior to date of application as supported by the borrower’s official receipts;

6.  Combination of loan purposes, which shall be limited to the following:

a.  Purchase of a fully developed lot not exceeding 1,000 square meters and construction of a  residential unit thereon;

b.  Purchase of a residential unit, whether old or new, with home improvement;

c.  Refinancing of an existing mortgage with home improvement;

d.  Refinancing of an existing mortgage, specifically a lot loan, with construction of a residential unit thereon.

To qualify for a Pag-IBIG Housing Loan, a loan applicant shall satisfy the following requirements:

1.  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.  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.

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

c.  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.

d.  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.


Next…. What are the documentary requirements to a Pag-IBIG loan?

Click here for very affordable house and lot packages developed by Ayala Land Bellavita

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