This article is intended for the first-time home buyer who wanted to buy a house using Pag-IBIG Financing.
Maybe you are still single and you already wanted to get a house before getting married. (Well, this was the route that I followed.) Or, maybe you are newly wed and you decided that you want to live separately from your parents. Believe me, there’s no substitute to the feeling that you are living on your own home.
A Pag-IBIG starter home — your first home — may not be the most impressive home in town. That’s okay. Forget about the Joneses. Like your puppy love, don’t ever think that it will become your dream home. Rather, treat it as a nest egg that allows you to slowly build your investment (hedge against inflation) while literally having a roof over your head.
Buying your first home through Pag-IBIG is so easy if you take note of the following tips offered here.
Tip #1: Work With Your Real Estate Professional
By real estate professional, in this context, I’m referring to the real estate broker or agent who is directly selling the house.
You may think that getting the assistance of a real estate agent will make the property more expensive. Whoever told you that must be very ignorant of the whole process.
Here’s what you should know: The real estate professional can’t change the selling price of the property that is owned by the Developer. That is, they can’t markup the price nor can they offer a discount. The selling price and discounts are completely dictated by the Developer’s Marketing Team and the agent can never, ever change that price.
Using a real estate professional right from the start saves you from a lot of headaches associated with the home purchase. For one, the guy is a good source of information such as the following:
- The project
- The property
- The financing schemes
- Special promotions and discounts
- The materials used,
- The move-in process
And if you are using Pag-IBIG Financing, your real estate agent should be able to help you cut through the bureaucracy in the Office.
Tip #2 : Buy A New House
Avoid foreclosure properties or properties that are for assume. Most of these properties are inherently problematic. You don’t want to find yourself catching someone else’s problem, do you?
Many foreclosed properties are so cheap you are tempted to jump on the deal immediately. Not so fast. This may be one of those cases where cheap could actually turn out to be very expensive due to probable renovations. If renovations are needed, we can point you towards reputable contractors like Art Construction.
As much as possible, make sure you are the first owner. Of course, as time goes, newer homes will become harder to find. If that’s the case, make sure that the Land Title is clean.
Tip #3 : Buy From A Legitimate Real Estate Developer
Never, ever deal with a fly-by-night real estate developer. But the crooks have a way of putting on the mask in such a way that you can’t detect the devil’s intentions. Here’s where common sense becomes a useful tool at your disposal.
At the very least, a legitimate Real Estate Developer:
- Has complete Business Permits and Licenses to operate in that line of business.
- Issues an Official Receipt from the Bureau of Internal Revenue.
Some good points to keep in mind:
- Check the track record of the Developer – especially its past projects.
- Make sure they are accredited by the Pag-IBIG Fund. (only if you intend to use Pag-IBIG Loan)
- Check the License To Sell and Development Permit – they should have both.
Tip #4 : Make Sure You Have Your Finances In Order
Here’s a handy checklist:
- You are currently an active Pag-IBIG member with at least 24 months contributions
- Your employment history is impressive
- You have enough salary/income to cover the monthly amortization
- The Pag-IBIG Housing Loan Process
- The Basics of Home Financing
- Improve Your Chances of Getting A Loan
Tip #5 : Save Enough For The Down Payment
The greatest hurdle most real estates buyer ever faced is coming up with the down payment. Many are surprised when they find they don’t have enough cash to cover the outright cash payment required of them.
The down payment, sometimes called equity, is usually 10% to 30% of the selling price. And almost always, it is to be paid one-time about one month after placing the Reservation Fee. So one of the first problems you should think about is the amount of cash you need to raise for the down payment.
Down Payment Tip: Ask your real estate agent if you can defer the payment of the down payment to, say, 12 months. This should be easier on your pocket.
“5 Great Tips For The First Time Pag-IBIG Home Buyers” is written by Carlos Velasco.
How about the transfer fees. All the fees needed to transfer the property to your name. Do you have experience with that.
Would the developer still require you to pay the downpayment if say you are approved of a 3M? Or will it be good as cash payable to them?
That is usually split between the buyer and the seller. They should agree on who will pay for what.
Take note that the down payment represents your “interest” on the property. The lender will normally require you to pay a down payment to see how serious you are in your investment.
elgin hernandez says
Im an OFW, and having an interest in having a house+lot loan, but will my unpaid SSS salary loan affects my loan approval?? thank you for your time.
hi, this has been a very helpful TIP for 1st time buyers. i’m planning to get a rent to own house for my mom and dad and hopefully everything will go smoothly 🙂
Can I avail the housing loan even I already have a housing loan
No, it won’t affect your loan application at all since the two institutions are now separate.
@jaja: Good luck!
I’m OFW working abroad,Is it posible to pay 24months on my PAG-IBIG then i will apply for HOUSING LOAN?I’s it posible to pay directly to PAG-IBIG OFFICE for payment?
ana s. rosario says
good am po,ask ko lang po kong pwede po bang ako na lang magbayad ng personal loan ko kasi iyong dati na agency namin kinakaltasan ako di naman binabayad kaya ang gusto ko po ako na lang magbabayad,pwede po bang magbayad sa mga accreditd niyo na mga bangko.pwede din po ba kahit magkano ibayad para matapos kaagad.
Good article!!…very informative. My husband and I are currently on the process of purchasing a house and lot and after reading this article, I was affirmed that we did made the right decision of getting a brand new house instead of the one that is due for closure. Also, I would like to commend the brilliant one behind this website. Surely this was a big help for all its members and even non-members who plans to be a member soon. More power and God bless! Suggestion po, what about having an online inquiry with regards to contribution?! Whatchatink?!!
I highly appreciate your feedback. Congratulations on your new house.
As for your online inquiry, that should be the task of the Official website of Pag-IBIG. I believe it is currently under development.
Yes, you should make sure that it it paid on time.
Pag-IBIG is not very clear on this 24 months issue. Some branches will also it, others not. Please try to do it at the branch of your choice.
This is a very helpful article. Thanks for taking the time to share these tips with us. I am currently planning to buy a new residential unit through PAGIBIG financing. (“,)
Thanks for your compliment! You made my day. This website is exactly made for that purpose.
hello it’s a good thing i read this article otherwise i will be tempted to purchase a house and lot for assume without thinking that it will be more troublesome.ty so much for the helpful tip.Godbless and more power.
Thank’s admin ang laking help mo talaga. Sana lahat ng tao katulad mo. Sna s mga nagwowowrk sa goverment yung iba dyan sana maging friendly ren kayo at helpful kasi kmeng mga mamamayan ang nagpapa sweldo sa inyo… haaayy sory po ha pero nakakainis kc yung iba :] . Basta Admin Sana wag po you magsawang tumulong at maraming salamat ulet sayo God Bless sayo kapatid… :] Mabuhay ka…
hello good day..ask ko lng po,yung ate ko po kasi almost 1 year ng nakakaltas yung shod nya s pgibig fund nung ngwowork pa sya d2 s pinas..pinapatnong nya kung ano yung process ng pgkuha ng house loan..ofw n kse sya ngaun,gusto nya ng bumili ng bhay dito s pinas..tas san lugar po p ung mga bhay..meron po b d2 s quezon city?? slmat..
Please read the article on Pag-IBIG Housing Lona Requirements and if possible share it to her.
My Pag-IBIG housing loan was approved a month ago for the new H&L purchase by the aid of the realtor in processing it with Pag-IBIG office. I then received afterward a note from the realtor that my H&L can be taken-out or I may say for ” TURN-OVER ” status now since it has been already paid to them by Pag-IBIG. I did not sign the turn-over notice to receive it due to the non-compliance to its supposed to have been built, but I had rather enumerated the “issues-to-be-rectified” before hand instead, such as uneven wall finished, a few cracks on the wall, missing some plumbing fixtures, missing electrical service outlet, deformed rain gutter, etc. To my surprise, my monthly amortization, as I was told by the realtor, must be paid this month since the H&L has been taken out.
Questions: Can the H&L unit be classified as “Taken-out” without the signature of acceptance as long as it has been paid to the realtor by Pag-IBIG? Do I really have to pay the amortization although I haven’t accepted the unit yet due to its non-RFO status? I know, in the first place, that my obligations for my monthly payment is to be settled right on time but what if the unit is still uninhabitable? Is it possible that Pag-IBIG can issue a payment to the realtor without having its borrower’s approval with regard to the subject of the loan?
Please advice, thanks and more power to your helpful site.
Please note this is my first with Pag-IBIG so I’m a bit confused and I’m an OFW currently working abroad that’s why contacting Pag-IBIG office is a time and money consuming and the phone is just keeps on ringing.
But I do understand that I’m not the only one who’s trying to contact Pag-IBIG office.
how will i know what is the status of my loan
Thanks for your very clear explanation on your situation. Indeed this one is very important because it is a very common problem encountered by buyers of this kind of projects. But I don’t quite understand the role of the realtor here. Did you buy the property from the developer or from an individual seller.
Please take note that in cases like this, there are usually two parties here that you need to deal with: The Pag-IBIG Fund that lends you the money and the developer that builds the house. And you are correct in insisting that the house should be in good condition before it will be turned over to you. And besides, the Pag-IBIG team should have inspected it first.
You need to follow-up that one at the Pag-IBIG Office.
I assumed a H&L from a certain friend and she’s been paying it for two years now to the developer. Is it true that it will take three to six months before it will be transferred to her name? I asked if it can be directly transferred to mine since it has been two yrs paid just this month and by next month, August, I will be starting to pay it to Pag-ibig but I was told that I must apply for a loan and will wait for the approval before I can work out the transfer. What will dictate the price of the 2-yr old H&L? Is there a possibility that I will pay more than the package price that my friend acquired last two years ago? If I plan to apply for a loan amounting to the remaining balance of the H&L, will I have to pay for an equity? What will I do to save a little since I already paid a certain amount to my friend? And if I will have an equity, I’m sure that I will be paying more than its original package price which I think is unfair on my side.
You’ll be lucky if that property is not yet mortgaged with Pag-IBIG. The easiest way to assume it is when it is still under the custody of the developer. As to the price, actually Pag-IBIG will conduct it’s own appraisal, and it is usually lower or
equal to the selling price.
As of now it is still under the custody of the developer and as advised by pag-ibig, it will be transferred to my friend three to six months after the second year of payment. I was also told that it could be transferred to my name after it is already transferred to my friend’s name because as of now it is still under the name of the developer. When you say selling price, is it the original package price two yrs ago or the current selling price, i mean the original package price minus the 2yrs amount that she already had paid?
If I may suggest, your friend should execute a waiver of rights informing the developer that you are now the “new” buyer of that property. So instead of your friend applying for a Pag-IBIG Housing Loan, it will be you this time. And by “selling price”, I mean the selling price during the time your friend made a reservation fee — I think you said “original price”, that’s what I mean.
Sophia Sarona says
Do i need to pay equity for acquired assets? in case i’ll apply for housing loan? pls pm me on my email
In most cases of real estate purchase using a mortgage loan, you will really be asked to pay for the equity.
Good day! my wife and i, are looking for house and lot that we can purchase thru pag- ibig. where could we find listing of house and lots for sale that accepts purchase thru pag- ibig loan.
Thanks and God bless.
Good question. A lot of visitors have also requested that we feature that kind of stuff here on this website. Actually, we already did just recently. Here’s a link:
It’s still new and hopefully, we will be having a lot of listing soon. Please check from time to time. 😉
Can you please tell us which area in the Philippines you want to buy a property?
In Marikina City or anywhere near.
Good am po! gusto k po sanang magloan ng 500K for house renovation how much po interest for 30 yrs. to pay? magkano po monthly deduction nun? thanks
1) ilang days po bago ma-release ang NOA/LOG?
Good day po sir.
Its my first time to apply for a house construction loan
I applied for a house construction loan at the pagibig Calamba,Laguna branch. Daming requirements but I managed to submit
all the required paperworks and approved 1st week of October 2011. Nagsimula pa ako June 2011 sa mga paperworks na yan.
Currently ginamit ko personal savings ko para may masimulan na sa lot.
3x a week kami mag follow up, iba iba ang sagot sa pagibig office kesyo may ganito ganoon. Kanina nga lang binagsakan pa kami. It took them a month bago ma ocular visit yung house construction ko. Alam ba ng pagibig na mayroong timeline ang building permit mula munisipyo para ma complete yung construction? Sabi nga nung nasa desk officer nila around 3 months pa bago ma release yung first check ko (?!).
Magtatanong lang po ako kung gaano po katagal ang processing period sa pag-ibig bago ko matanggap ang first check ko. Once I do get my first check , gaano katagal ulit intayin ko bago ko makuha yung second check?Right now ipapatigil ko na yung construction dahil naubos na yung savings ko kahihintay sa pagibig.
Thanks and Godbless.
i am enjoying reading your guidelines, keep posting 🙂 its very helpful especially for a first time pagibig home buyers.. Now me and my husband are planning to buy our own house 😀
Hi! We are in the middle of selling our home in Iligan. If we owe SSS on our property that we are trying to sell (SSS has the title) can the buyer still finance through pag-ibig? Is there a way to get a copy of the title from SSS?
That’s possible but you have to coordinate it with the SSS.
Sorry for the late reply. Unfortunately, I can’t also give you an exact answer on those timeline. This is one area in which Pag-IBIG Fund is not so efficient about.
Me and my girlfriend is planing to buy a property using Pag-IBIG, is it possible for the two of us to avail a housing loan on a single property?
Unfortunately, Pag-IBIG doesn’t allow for bf-gf members tacked-in and apply for a single Home Loan.
Thanks for the info Admin!
So the tacked-in application is only applicable for married couples? Do I get it right?
“parsimony101 on May 26th, 2011 1:40 am
sirs… paano kung dalawa kami uutang ni mrs? pwedeng dalawang less than 1M na loan? for a 1.5M combined loan… para less interest? we’re both paying members naman.”
Married couples, siblings and others. Please review the article above.
question lng po regarding sa previous loan ng pag-ibig if di mo ba ito nabayaran automatic banabawasan nila ung contribution mo? the last time that im going to pay my loan balance sabi sa akin ng isang pag-ibig officer eh bayad n daw kasi binawas sa contribution ko! me ganun ba na case so di ko na sya vinerify pa… ksi sabi wla na daw akong babayran d ba un magkakarun ng conflict pag kumuha ako ng housing loan? pede bang magdirect sa pag-ibig sa pagbili ng bahay or mas better na mag-agent ka na lang para mas mabilis?
The only time you can buy direct from Pag-IBIG is when you are buying the foreclosed properties. Otherwise,
you should be dealing with the brokers, agents, developers or individual sellers. Remember that Pag-IBIG is really into
Home Financing and not into Home Selling business.
Regarding your MPL Loan, your friend is right. For details, please refer to this link:
if you apply for purchase of property, is it possible that it will later on converted to housing loan. (History: already has contract to sell from the bank and apply to pag ibig for take out.).
nette vergara says
hi..thanks for your helpful site. i want to ask if possible to get a housing loan, but not with the developer?the house owned by a private/also my relative.can i apply for a housing loan? i am a OFW, and a member of POP for more than 2yrs now, aside from a local pag ibig member dati. pls give me some infos. thanks!More power!
Yes, that’s possible.
arlene remodo says
hi, we’re planning to buy a house and lot from a friend, it’s under pag-ibig mortage, since we also are pag-ibig members, how can we assume the housing loan in our name and clear the previous owner of her loan?
please advise us. thanks
Please refer to this article on how to assume a Pag-IBIG Home Loan: