Pagibig Housing

Owning a home in the Philippines has been made easier and more affordable by the Home Development Mutual Fund or PagIBIG.  When you start early, you should be able to pay your PagIBIG-loaned house in full before you hit your 50s or 60s.  The monthly amortizations are also budget-friendly and are almost at par with the current rates of renting an apartment.

If you have been working for at least 5 years now, you may already be eligible to acquire an Affordable Housing Loan program from PagIBIG.  To help you get started, here are the basic information you need to know about this program:

  1. What can be purchased with the Affordable Housing Loan Program? 
    • Fully developed residential lot or adjoining lots not exceeding 1,000 square meters;
    • Residential house and lot, townhouse, or condominium unit;
    • Construction or completion of a residential unit on a lot owned by the member.
  2. Who can avail of the Affordable Housing Program?
    • Any Pag-IBIG member who meets the following requirements:
      • Must have remitted 24 monthly contributions under Pag-IBIG 1 Membership Program.  If you are a new member, you have the option to pay the 24 monthly membership contributions in lump sum, corresponding to the loan amount applied for.
      • Gross monthly income must not exceed Php 17,500.00 (NCR-based) and Php 14,000 (for workers based in other regions).
      • Not more than 65 years old.
      • Does not have an outstanding Pag-IBIG housing loan.
      • Does not have outstanding multi-purpose loan in arrears.
      • Does not have a previous Pag-IBIG housing loan that was foreclosed, cancelled, bought back due to default or subjected to Dacion en Pago.
  3. How much can a member borrow?
    • Qualified members may borrow up to a maximum amount of Php 750,000.00.  This shall be based on the following:
      • Member’s actual need;
      • Member’s loan entitlement based on gross monthly income, capacity to pay, and loan-to-appraisal value ratio, whichever is the lowest;
      • A maximum of three (3) qualified Pag-IBIG members may be tacked into a single loan provided they are related within the second civil degree of consanguinity or affinity.
  4. What is the loan to appraisal value ratio? (table)
    • Loan Amount Loan – to – Appraisal Value Ratio
      Up to P450,000 100%
      Over P450,000 to P750,000 90%
  5. What are the interest rates? (table)

    • For the first 10 years of the loan, the following table shall be followed on interest rates.
    • After first 10 years of the loan, the interest rate shall be re-priced based on the prevailing interest rates in the Fund’s pricing framework or it shall be increased by 2%, whichever is lower.
      GROSS MONTHLY INCOME  LOAN AMOUNT INTEREST RATE
      P15,000 (NCR) P450,000 4.50%
      P12,000 (Other Regions) P450,000 4.50%
      P17,500 (NCR) P750,000 6.50%
      P14,000 (Other Regions) P750,000 6.50%
  6. How long is the repayment term?  The Affordable Housing Loan program’s repayment term is thirty (30) years.
  7. Are there any charges to be collected?  Processing fee: P3,000 where the P1,000 is paid upon filing of the loan application and the remaining P2,000 will be paid upon loan takeout.
  8. What are the documentary requirements?  You may visit the Pag-IBIG fund’s website at www.pagibigfund.gov.ph and click on Benefits and Programs.  Look for “Housing Loan Program” and then click on “Requirements” under Housing Loan Availment.
  9. Where to file Housing Loan Application?  You may file the loan online under the E-Services link in the Pag-IBIG website.  Otherwise, you may visit the Pag-IBIG NCR or any regional branch that has territorial jurisdiction over the property you intend to purchase.
  10. What is the processing time for the application?  The housing loan application’s regular processing time is 15 working days.  The borrower has to make sure that all required documents are duly submitted to avoid any delays in processing.

Source: http://www.pagibigfund.gov.ph/faqpdf/Affordable%20Housing%20FAQs%207-28-2014.pdf

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