How to Avail of Pag-IBIG Fund Housing Loan – Requirements and Procedures

Are you planning to purchase a new house or a condo? Or maybe you want to renovate your house but you don’t have enough funds?

Either way, Pag-IBIG Fund Housing Loan Program might be able to help you.

• Pag IBIG Foreclosed Properties – SEPTEMBER 2019

What is Pag-IBIG Housing Loan Program? 

This housing loan program of Pag-IBIG Fund provides opportunities for its members to finance their housing needs. Members can avail of the Pag-IBIG Housing Loan to help them fulfill any of the following:

1. You can avail of the Pag-IBIG Housing Loan to purchase a fully developed lot.
   • This lot should be within a residential area and it must not exceed 1,000 square meters.
2. You can avail of the Pag-IBIG Housing Loan to purchase a residential house and lot, townhouse or condominium unit including the parking slot, if any.
   • This property may be brand new or old and must be mortgaged with the Pag-IBIG Fund
   • This property could be an acquired asset, which you could have gotten through the Rent-to-Own Program, a negotiated sale or a sealed public bidding, or the “Magaang Pabahay, Disenteng Buhay” Program.
3. If you own a lot, you can avail of the Pag-IBIG Housing Loan to construct or complete your residential unit.
4. You can also avail of the Pag-IBIG Housing Loan for your Home improvement.
5. You can avail of the Pag-IBIG Housing Loan to refinance an existing mortgage with an institution that is acceptable to Pag-IBIG, provided that:
   • The loan is not in default within 12 months prior to the date of application.
   • The loan has a repayment history of at least 2 years with the original mortgagee.

2 Ways to Apply for Pag-IBIG Housing Loan

1. Retail – You can apply directly to the Pag-IBIG Fund if you are a Pag-IBIG member.

2. Developer-Assisted – If you’re purchasing a property through a developer, the developer can assist you on your Pag-IBIG Housing Loan application.

Who can apply for the Pag-IBIG Housing Loan?

• A Pag-IBIG member who has paid at least 24 months of contributions to the Pag-IBIG Fund.
  • If you have been a contributing member for at least 12 months, you can make a lump sum payment to meet the required number of contributions when applying for Pag-IBIG Housing Loan.
  • If your loan exceeds P500,000, you will be required to pay the upgraded membership contribution rates upon housing loan approval and onwards.
• The member-applicant must not be more than 65 years old when you apply for a loan and you must be insurable. The member must not be more than 70 years old at loan maturity.
• You must have the legal capacity to acquire and pay for a real property consistently until it’s fully paid.
• You must have passed satisfactory background or credit and employment or business checks of the Pag-IBIG Fund as part of your application process. This is to ensure that you have the capacity to pay the property in the long run.
• You must not have any outstanding Pag-IBIG housing loan, either as a principal borrower or co-borrower;
• You must not have any Pag-IBIG housing loan that was foreclosed or canceled.
• You must not have any outstanding Pag-IBIG multi-purpose loan in arrears at the time of your loan application. If you have, you will be required to pay your arrearages over the counter to update your account.

How much are the Processing Fees for Pag-IBIG Housing Loan? 

a. P1,000 loan filing fee –  This is charged upon the filing of housing loan application with all the required documents and this is non-refundable.

b. P2,000 loan appraisal fee – This is also charged upon the filing of housing loan application and this is non-refundable.

c. P2,000 loan take-out fee – This is charged upon take-out and this is deducted from the loan proceeds.

What are the Requirements for Pag-IBIG Housing Loan Application? 

1. Housing Loan Application Form (2 copies)

This must be completely filled out and you have to attach your most recent ID photo.

2. Proof of Income

a. For Locally Employed members 

• ITR, Audited Financial Statements, and Official Receipt of tax payment from bank supported with DTI Registration and Mayor’s Permit/Business Permit
• Commission Vouchers reflecting the issuer’s name and contact details (for the last 12 months)
• Bank Statements or passbook for the last 12 months (in case income is sourced from foreign remittances, pensions, etc.)
• Copy of Lease Contract and Tax Declaration (if income is derived from rental payments)
• Certified True Copy of Transport Franchise issued by appropriate government agency (LGU for tricycles, LTFRB for other PUVs)
• Certificate of Engagement issued by owner of business
• Other documents that would validate source of income

b. For Self Employed

• ITR, Audited Financial Statements, and Official Receipt of tax payment from bank supported with DTI Registration and Mayor’s Permit/Business Permit
• Commission Vouchers reflecting the issuer’s name and contact details (for the last 12 months)
• Bank Statements or passbook for the last 12 months (in case income is sourced from foreign remittances, pensions, etc.)
• Copy of Lease Contract and Tax Declaration (if income is derived from rental payments)
• Certified True Copy of Transport Franchise issued by appropriate government agency (LGU for tricycles, LTFRB for other PUVs)
• Certificate of Engagement issued by owner of business
• Other documents that would validate source of income

c. For Overseas Filipino Workers (OFW)

• Employment Contract
  • Employment Contract between employee and employer; or
  • POEA Standard Contract
• 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
• Income Tax Return filed with Host Country/Government

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

4. Transfer Certificate of Title (TCT)

You should submit the Certified True Copy of the latest TCT. For Condominium Unit, you should present the Certified True Copy of the TCT of the land and Condominium Certificate of Title (CCT).

5. For House and Lot, you need to submit a photocopy of the updated Tax Declaration and Real Estate Tax Receipt.

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

7. Vicinity Map or clear Sketch of the Property

What are the Requirements Prior to the Release of the Loan?

1. TCT or CCT with proper mortgage annotation in favor of Pag-IBIG Fund (Owner’s Duplicate Copy).

2. TCT or CCT (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).

These documents should be in the name of the borrower or co-borrower/s, if applicable.

4. Loan Mortgage Documents

• Loan and Mortgage Agreement – this should be duly registered with Registry of Deeds with original RD stamp (HQP-HLF-162/163)
• Deed of Absolute Sale – this should be duly registered with Registry of Deeds with original RD stamp
• Duly accomplished or notarized Promissory Note (HQP-HLF-086/087)
• Disclosure Statement on Loan Transaction (HQP-HLF-085)

What are the Procedures when Applying for Pag-IBIG Housing Loan? 

Step 1: Prepare all requirements

• Prepare all the required documents for your Pag-IBIG Loan Application. Go to the nearest Pag-IBIG branch and ask for the Mortgage Loan Specialist who will assist you with your loan application.
• Get a copy of the Membership Status Verification Slip (MSVS), fill it out completely and submit it for verification.
• After verification, get the verified MSV, acknowledgment receipt, Pag-IBIG Loan Application Form (PHLAF) and the checklist of requirements.

Step 2: File your Pag-IBIG Housing Loan Application 

You can file your Housing Loan application either at the Pag-IBIG branch or online. The processing time of the loan is approximately 20 working days from the date of filing with all the required documents submitted.

• Visit the Pag-IBIG branch with territorial jurisdiction over the property subject of the loan. Submit your application form and all the required documents.

If you have lacking documents, you will be given an Acknowledgment Receipt. You can go back to the branch and present your documents once it’s available.

• Update your Pag-IBIG Membership Data through Online Membership Registration System and get a system-generated MDF with the RTN or Registration Tracking Number.
• Get a copy of the Payment Order Form (POF) and pay the processing fee of P1,000.
• Get the Pag-IBIG Fund Receipt (PFR) and photocopy it.
• Submit the PFR photocopy and get the Acknowledgment Receipt (AR)

The Mortgage Loan Specialist will do the necessary procedures and will inform you of any findings regarding the credit investigation within 5 working days.

The Property Appraiser II of the Property Valuation Division will inform you about the schedule of property appraisal within 5 working days. They will inform you of any findings of the inspection within 2 days.

Step 3: Approval of the Housing Loan

• You will be informed if your housing loan application is approved.
• Once your loan is approved, you need to go to to the Pag-IBIG branch where you file your loan application and you need to sign the following documents:
  • Loan Mortgage Agreement (LMA)
  • Promissory Note (PN)
  • Disclosure Statement on Loan Transaction (DSLT)
  • Notice of Approval (NOA) Conforme page.
• You will then receive the following documents
  • Notice of Approval (NOA)
  • Letter of Guaranty (LOG) – applicable except Construction/Home Improvement loan purpose
  • Disclosure Statement on Loan Transaction (DSLT)
  • Loan Mortgage Agreement (LMA)
  • Promissory Note (PN)
• The LMA and PN must be notarized by a Notary Public.
• Complete and submit the requirements in the NOA within 90 days from receipt of NOA/LOG.

Step 4: Release of the Housing Loan Proceeds

• Submit all the requirements in the NOA for evaluation and processing of Check.
• When you check is available, you will be informed and you will have to go to the Pag-IBIG branch to pick up your check.
  • present 2 valid IDs to get your check if you pick it up personally.
  • if a representative will pick up your check, he/she must present a notarized SPA or special power of attorney and valid IDs of the principal and attorney-in-fact.

Note: If you loan purpose is for Construction/Home Improvement, the loan proceeds from Pag-IBIG will be released on a staggered basis depending on the progress of the construction.

Step 5: Payment of Pag-IBIG Housing Loan 

• Payment through Post-dated Checks (PDCs)
  • You must issue 12 PDCs for the 12 monthly amortization payment. Upon consumption of 10 PDCs, you need to issue 12 PDCs again for the next 12 monthly amortization payment.
  • Ger your Acknowledgment Receipt (AR), Notice of Installment/Amortization, and your Pag-IBIG Fund Receipts at the branch where you issued your PDCs.
• Payment through Salary Deduction (SD)
  • You need to present Authority to Deduct duly received by the Billing and Collection Department
  • Get Notice of Installment/Amortization.

Why Avail the Pag-IBIG Housing Loan? 

With Pag-IBIG Fund, you can loan as much as P6 million. It’s easy to avail of a loan from the Pag-IBIG Fund plus the interest rates are way lower compared to the banks and other lending institutions.

• 5.500% for a 1-year fixed-pricing period
• 6.500% for 3 years
• 7.270% for 5 years
• 8.035% for 10 years
• 8.585% for 15 years
• 8.800% for 20 years
• 9.050% for 25 years
• 10.000% under a 30-year fixed-pricing period

You can use the Pag-IBIG Housing Loan Amortization Calculator to get an estimate/approximate of your monthly amortization.

In the calculator, the following interest rates are used:

• 6.985 % – 3 Years
• 7.825 % – 5 Years
• 8.775 % – 10 Years
• 9.385 % – 15 Years
• 9.675 % – 20 Years
• 10.000 % – 25 Years
• 11.375 % – 30 Years

Note: This calculator computes the approximate Principal and Interest and the Required Gross Monthly Income only. MRI and other fees and/or charges are NOT included in the computation.

Lower Loan Rates for Minimum-Wage Earners

With the Affordable Housing Program of Pag-IBIG Fund, minimum-wage earners can borrow up to P450,000 for only 4.5% per annum for the first 10 years of the loan term. The loan term can be extended to 30 years with a minimal difference in the interest rate in the years following the first 10 years.

This program can help drivers, kasambahays, and other minimum-wage earners own a home for as low as P2,280.08 monthly amortization. They’re just like renting a house or they’re even paying lower than the current rate of rental apartments.

It’s not impossible to have a house that you can call your own.

Pag-IBIG Fund Housing Loan can surely help you. Just go through the steps on how you can go about availing the loan and sooner or later, you’ll be living in your dream house.

RELATED VIDEOS:

• Steps in Buying Pag IBIG Acquired Assets or Foreclosed Properties
• Pag IBIG Foreclosed Properties Requirements
• How to Find Pag IBIG Acquired Assets Online in Pag IBIG Fund Website

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