How to get a PAG-IBIG housing loan
The Home Development Mutual Fund, more commonly known as Pag-IBIG, has been one of the usual options of Filipinos when looking for an affordable home loan.
Not everyone knows it but a Pag-IBIG housing loan may be used to finance not just the purchase of a brand-new property but also the following:
- Purchase of a fully developed residential lot or adjoining lots not exceeding 1,000 square meters;
- Purchase of a residential house and lot, townhouse, or condominium unit; or
- Construction or completion of a residential unit on a lot owned by the member.
Who are eligible to apply for a Pag-IBIG housing loan?
Filipinos who satisfy the following requirements may avail of a Pag-IBIG housing loan:
- Must have remitted 24 monthly contributions under the “Pag-IBIG I Membership Program”. New members may pay the 24 monthly membership contributions in lump sum, corresponding to the loan amount applied for;
- Not more than 65 years old;
- Has no outstanding Pag-IBIG housing loan;
- Has no outstanding multi-purpose loan in arrears;
- Had no Pag-IBIG housing loan that was foreclosed, cancelled, bought back due to default or subjected to Dacion en Pago.
The amount of loan, the loan interest rate, and other specific requirements may differ depending on the type of loan the member wishes to avail. There are currently two types of housing loans offered by Pag-IBIG: the Affordable Housing Program and the End-User Financing Program.
What is the “Affordable Housing Program”?
The Affordable Housing Program is for minimum wage earners or those whose gross monthly income does not exceed P17,500. Borrowers may loan up to P750,000, with interest rates of 4.5% or 6.5% in the first ten years of the loan, depending on the gross monthly income of the borrower.
What is the End-User Financing Program?
The other housing loan program of Pag-IBIG, called the End-user Financing (EUF) Program, is for those wishing to borrow higher amounts, up to P6 million. The annual interest rate depends on the fixing period chosen by the borrower.
More details about the interest rates can be found in our article Pag-IBIG’s Housing Loan Program Interest Rates.
How long is the repayment term?
The maximum repayment period for a Pag-IBIG loan is thirty (30) years.
What is the Processing Time?
The regular processing time for a housing loan application is sixteen (16) working days, provided the borrower has submitted all the necessary requirements.
How do I apply for a Pag-IBIG home loan?
Step 1. Get a Housing Loan Application Form and Checklist of Requirements from any Pag-IBIG office nationwide or at their official website at www.pagibigfund.gov.ph
Step 2. Submit the accomplished Application Form together with the complete requirements to the Pag-IBIG office whose jurisdiction covers the property subject of the loan. Pay the partial processing fee of P1,000. You may also file your application online via www.pagibigfund.gov.ph (click “E-Services”). The processing of application is 16 working days, provided that all required documents are submitted on time and without issues.
Step 3. Upon receipt of the Notice of Approval (NOA)/Letter of Guaranty (LOG), sign the loan documents.
Step 4. Accomplish the NOA requirements for check release.
Step 5. Receive the loan proceeds from Pag-IBIG. (The check payee is either the borrower, seller, or a third party to which the loan proceeds are assigned to be released). Bring two (2) valid IDs and twelve (12) Post-Dated Checks (if payment is not through Salary Deduction).
Step 6. Payment of monthly amortization starts one (1) month from Check Date.
Hope you can own a property soon!
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