How to Apply for a Pag-IBIG Housing Loan

by Moneymax, on category "Government Services,Personal Finance,Real Estate"

January 18, 2018


MoneyMaxph_PAGIBIGVSBanksAccording to Pag-IBIG’s ‘At a glance August 2017’ report, as of August 2017, there were a total of 1,237,979 borrowers of Pag-IBIG’s housing or institutional loans. These housing loans enable Filipinos to turn their dream home into a reality. Whether the loan is used for purchasing a new lot or used for home improvements and repairs, Pag-IBIG members are entitled to apply for its housing loan programs. This article explains all the necessary details required for a Pag-IBIG Housing Loan.

1. Member Requirements

If you fit the below criteria, you are entitled to apply for a housing loan –

  • Pag-IBIG member for at least 24 months (show proof of contributions)
  • If you’ve been a member for more than 12 months but less than 24, you are entitled to apply for a housing loan permitted you to make a lump sum payment equal to two years’ contribution
  • No more than 65 years old at time of application
  • Less than 70 years old at loan maturity
  • Pass background, employment, and credit checks

2. Pag-IBIG Housing Loan Requirements

To apply for the loan, you will need to pay a processing fee of Php 1,000 upon filing your application together with the required documents. An additional Php 2,000 will also be deducted from the loan proceeds.
Aside from the Pag-IBIG Housing Loan Application Form (PHLAF) and Membership Status Verification Slip (MSVS), below are the additional requirements you’ll need to submit:

  • Authorization to conduct background check
  • Photocopy of valid photo-bearing ID (principal, co-borrower, and spouses of borrowers)
  • Proof of income (payslip, income tax return, POEA employment contract, etc.)

Aside from the abovementioned, you will also need to provide technical documents for the housing loan application. Documents included are:

  • Certified true copy of TCT/CCT by the Registry of Deeds
  • Location plan and vicinity map of your property
  • Photocopy of the Tax Declaration and Real Estate Tax Receipt

Take note that upon release of the loan, there are additional documents you’ll need to present. For a comprehensive list of all the documentary requirements, you can check the Pag-IBIG website.

3. Online Application

If you’re ready to apply for a housing loan and present the required documents, you can apply online through the Pag-IBIG Fund Online Housing Loan Application System. The first step in the application process is to provide your Pag-IBIG MTD/RTN number, and your given name. Once you’ve input the following, you can now fill up the online application form.
Unlike credit card debt which is bad debt, a housing loan can be considered good debt. This is because real estate is an investment and is considered an asset, whether you buy and hold your property for the long-term or rent it out and earn additional income. It is important to note that you must pay the monthly payments on your housing loan lest you want to end up spending more on interest payments than on the loan balance. As long as you pay the required monthly loan payments, you will reap the rewards of being both a real estate investor and a homeowner.

4. Notice of Approval or Letter of Guarantee

NOA will be released only to the borrower or to the Attorney-in-Fact for OFW borrowers, provided with SPA. Upon receipt of NOA, sign the loan documents and submit within 90 days.

5. Get loan proceeds at the Pag-IBIG Fund

The proceeds are released to the person/institution assigned by the borrower/buyer, who is expected to bring 12 Post Dated Checks if payment is not thru salary deduction.

6. Start of monthly amortization payments

The payments start one month from DV/Check date.

7. Taking Multiple Housing Loans from Pag-Ibig

Since 2015, Pag-Ibig allows its borrowers to avail a Multiple Housing Loan under the following conditions
  • The total monthly amortizations for all Housing Loans must not fall below 35% of the Gross Monthly Income
  • The aggregate loan value, representing the outstanding balances of his existing housing loans and the loanable amount for the new housing loan, does not exceed P6,000,000
  • In case of multiple loans, if one of the housing loan accounts becomes in default, all of the housing loan accounts of the borrower shall be considered in default as well

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