Pag-IBIG Financing Admin

House For Sale in Laguna

If you are looking for a good real estate deal in Laguna, this is something you should consider.

Price and Financing:

Total house and lot price: 590,000
Down payment paid: 30,000
Monthly Amortization: 4,621
Term: 25 years
Loan granted and start of 1st payment: May 2009

This is under PagIbig financing, currently on its 3rd year of payment and is updated without arrears. If you have cash in hand and wanted to pay upfront the full amount, it is 600,000 (negotiable).

The title will be processed in your name (processing fee of approx. 15-20k to be shouldered by the buyer)

Property Description

Here’s a background information about the property as described by the seller:

My unit is Angelica in Lynville Subdivision Phase 2 , I acquired it bare. No ceiling, just floor cement, no electrical fixtures etc. but I’ve already spent more or less 50k to fix that.

Now there’s already a ceiling made of hardiflex, white colored tiles (including the bathroom floor and walls), and electrical fixture. You may notice the amount in the website is just 560,000, that is for regular units. Mine’s a corner lot and there’s a few square meters excess hence the loan amount when I acquired it becomes 590,000.

Here’s the website of the developer where you can have an idea of how it looks like.

http://www.lynville.com.ph/cprojects.html

Photo and Floor Plan of a Sample Unit:

Sample Row House in Lynville Subdivision, Laguna

Floor Plan for Angelica House Design

House Finishes

Lot area = exact details to follow
Floor area= exact details to follow
Corner Lot
Steel Truss Roof Framing
Oven Baked Rib Type Roofing with Gutter
Exterior Ceiling
Interior Ceiling (Hardiflex)
Exterior Finish – Plain Cement Finish w/ Paint & w/ Moldings
Interior Walls – Plain Cement without paint (white paint)
No Interior Room Partitions (but can accommodate 2 or 3 room partition)
Toilet and Bath- Wall and Flooring w/ Ceramic Tiles
Toilet Bowl With Flusher
Tiled Kitchen counter top
Main Door-Painted Panel Type
Service Door-Painted Flush Type
Toilet Door-PVC Type
Tiled flooring (cream colour)

Also, as already mentioned, there are already improvements to the unit plus is on a corner lot, with an area which is bigger than the regular area of 31.2 sqm.

Contact The Seller

Interested parties should get in touch with the seller and unit of the unit, Mr Eric John Lopez. Simply send him an email inquire further.

Email Address: elopez_ns@yahoo.com
Cellphone Number: 0917-836-5818

How To Become An Expert in Pag-IBIG Housing Loan in 25 Minutes or Less

by Pag-IBIG Financing Admin

One of the requirements before a member can avail of a Housing Loan from the Home Development Mutual Fund or simply Pag-IBIG is to attend a housing loan seminar. If you have not been to that kind of seminar before, here are the essential things that they cover:

An overview of the Housing Loan Program. Luckily, most of the contents of this website are focused on this topic, too. That means if you have been browsing around for quite some time, you already have a good deal of knowledge about the Housing Loan in general.
Question and Answer. For those who are really serious about taking a home loan, you can ask the presenter of the seminar any topic that you want to raise that’s related to the program or your particular situation. If there have been questions bothering you regarding the housing loan, this is a good time to ask those and get official answer. So before to ever go to the seminar, it would be good if you prepare a list of your questions.
Membership Status Verification. Before you can even apply for a housing loan, the Pag-IBIG Fund has to take a look at the details of your membership. They will ask you to fill up this small slip and submit it to the Pag-IBIG staff who will be checking on your membership status while the seminar is going on. Just before the seminar ends, you then get a verification whether you qualify for a housing loan or not.

It’s really that easy. Take note that a big part of the seminar is spent discussing the details of the Housing Loan Program. Indeed it is very important that you know more about it.

But don’t you wish you can attend an online Housing Loan Seminar so you can do it from any place in the planet?

Good news: Now you can, right here on this very page! Thanks to Youtube, your wish is granted!

As a side effect of watching these videos, you can actually become an expert in Pag-IBIG Housing loan. You can be proud to discuss it with your circle of friends. Or, better yet, share this article with them.

Videos On The Pag-IBIG Housing Loan

Part 1:

Part 2:

Important topics discussed in the video:

Eligibility Requirements. Things like age, years of membership, etc. You can also read them here.
The Loan Amount You can Take. Please read this article for the details. The video also discusses concepts like Capacity To Pay and Loan-To-Value Ratio.
Loan Document Requirements. Different types of loans require different documents. Read this to find out which one fits your needs.
How to pay for your Housing Loan. Read this especially if you are based overseas or you salary deduction is not possible for you.
Advanced Payments. There is no pre-payment penalty on your amortization, but do you know how to do it right? Here are some tips on how to retire your loan earlier than its designated term.

Special Notes:

However helpful you find this video to be, this is not a replacement of the actual seminar, which is a requirement when you apply for a housing loan.
Just recently, the Pag-IBIG Fund has raised the ceiling on Housing Loan Amount to P 6 million, from previous P 3 million. The interest rate on socialized housing loans has also been subsidized byPag-IBIG to encouraged low-income members to avail of the program. We’ll have more of this in the up-coming articles.

There you have it. Enjoy watching the videos. It’s like attending a Pag-IBIG Housing Loan Seminar from anywhere in the world.

3 Stupid Things People Do With Their Mortgage Loan

by Pag-IBIG Financing Admin

You should consider yourself lucky if ever your housing loan application is granted by the Home Development Mutual Fund (or simply Pag-IBIG Fund).

Though it is one of the many benefits available to Pag-IBIG Members, not everyone is privileged enough to qualify for a housing loan.

Getting your housing loan approved simply means…

The Pag-IBIG Fund is investing greatly on you using the money pooled from the other members of the fund just like you. That’s using the power of leverage.
You have passed a very strict qualification process which includes the capacity to pay for the housing loan.
By having your own home, you are helping the country in its nation-building efforts. It is a sign that you are a responsible citizen, too.

But remember this: with your housing loan comes a number of obligations that you have to be responsible for.

And your first responsibility is… TO PAY THE LOAN. When it comes to paying their mortgage, here are the top three stupid things people do that lead them into trouble.

1. Not Knowing Where or How to Pay

This is not so much of an issue if you are an employee in the Philippines and you have arranged a salary-deduction scheme with your employer. After all, they are required by Law to pay a part of your membership contribution (that’s P 100 per month) and remit the whole amount (P 200 in total) to the Pag-IBIG Fund every month (some do it quarterly).

Now, what if salary deduction is not possible? This is the case for many self-employed and OFW members. Well, the surest way is to pay over the counter at the branch where you got the housing loan. You can also pay from companies that are accredited by Pag-IBIG to collect payments for housing loans such as SM Payment Centers, iRemit branches overseas, and branches of Land Bank nationwide. Take however, that the list of accredited companies may change from time to time, so it prudent to check at the Pag-IBIG branch every once in a while. When paying from collecting agencies, always make sure that you keep your Official Receipts or whatever evidence of payment they may issue as proof of the transaction.

2. Not Paying On the Due Date

We recently got a message from a site visitor, which says in part:

“What if i cant continue paying my monthly housing loan? What is the best option to do? Like for example if I have no more work. Can i withdraw my housing loan? if so, can i collect my payments?”

mortgage past due — Don’t make it a habit to not pay your housing loan on time.

As a home buyer, it is your duty to remember the due date of your monthly amortization and to pay it on time. If you pay beyond the due date, Pag-IBIG imposes a penalty for late payment. The penalty may be minimal and affordable, but it is not a good habit to develop. And it would lead into trouble sooner or later. Don’t wait for this to happen.

On a positive note: Pag-IBIG sometimes offers rebates to people who pay their housing loans on or before the due date.

Important note to employees: If you are on a salary deduction, always make sure that your employer is remitting the right amount and at the right time. Lapses on their part may put your account at risk.

3. Allowing Foreclosure To Take Place

It only takes 3 consecutive missed payments against your mortgage before your property may be endorsed for foreclosure. If you ever care about your property at all, I’m telling you, don’t ever allow foreclosure to kick in. It’s very expensive in terms of paying the accumulated interest and penalties. It’s also very stressful emotionally. You’d be wise to prevent this from happening first and foremost.

Well, if you are already deep into this problem, I suggest that you contact immediately the Pag-IBIG branch that handles your account and that granted you the housing loan. One of the ways you save your property is to apply for a restructuring of your loan.

Again, it is worth repeating that a housing loan is a long term commitment and you have an obligation to pay for it. Be responsible.

How To Assume A Loan

by Pag-IBIG Financing Admin

Loan Assumption is one of the misunderstood concepts in real estate even among professionals like brokers and agents. A lot of them just don’t know how to go about it or can’t simply do it right.

While it’s true that a Pag-IBIG Housing Loan is assumable, it should be approached very carefully and with the help of a competent lawyer. Once you do it wrong, it could lead to a lot of problems, stressful situations and possibly loss of money.

If you are the one assuming the loan, for instance, one of the worst things that could happen is this: You religious pay the monthly obligation to the loan until such time that it is already fully paid. Suddenly you realize that Pag-IBIG doesn’t recognize you as the buyer and won’t transfer the title in your name. It’s like the original buyer is using “your money” to pay for his loan. How would you react if you are in this situation? Naturally, you would feel deceived. Sadly, a lot of people have been into this situation. And if you know someone who is into this, please do them a favour by sharing this article.

Here, we’ll show you two documents that you can use when assuming a loan and we also provide an sample of each.

The Assignment of Contract

This form is essentially used when one party (the original buyer) to a contract wants to assign his full interest in the contract to another party (the new buyer). In other words, nothing is changed in the contract except the fact that one party is being substituted by another.

When crafting this contract, it is important for the assignor (the party assigning the contract to another) and the assignee (the other party to whom the contract is being assigned) to agree and include an “indemnify and hold harmless” clause. Essentially, this means that the assignor releases full responsibility of the contract to the assignee.

Note: A copy of the original contract should be attached to this form and both parties (and their lawyers) should keep copies of this document.

Sample Form: Assignment of Contract

This assignment of contract is made on (date here) between (assignor name and address) and (assignee name and address).

For valuable consideration, the parties agree to the following terms and conditions:

(list your terms here)

Both parties have signed this assignment on the date specified at the beginning of the document.

(Assignor Name and Signature)

(Assignee Name and Signature)

Notice of Assignment of Contract

Sometimes a third party is involved and needs to be notified in writing when an agreement such as the one above is made. This should be the case when you assume a Pag-IBIG Housing Loan from someone else. The Notice of Assignment of Contract is a document meant for this purpose. On the part of the third party, they are now aware of the fact that a new party takes over the contract and should be the one responsible for all its benefits and obligations.

Sample Form: Notice of Assignment of Contract

Date : _____

To: (Home Development Mutual Fund)

RE : Assignment of Contact

Dear _________________:

This notice is in reference to the contract described in the attached document. (Please see the attachment.)

Please be advised that as of (date of assignment), all interest and rights under this contract which were formerly owned by (name and address of assignor) have been permanently assigned to (name and address of assignee).

Please be advised that all of the obligations and rights of the former party, the assignor, to this contact are now the responsibility of the new party to this contract.

(Name and signature of the Assignor)

Further Notes:

Always consult a competent lawyer when drafting documents of this kind. Don’t make the mistake of just relying on your broker to go about this. I’ve heard lots of stories and complaints from people who did this kind of transaction only to wind up with problems later on. Don’t be one of them.

Real Estate Agents: Should You Work With Them?

by Pag-IBIG Financing Admin

Some people have a lot of misconceptions about real estate agents in the Philippines and the kind of work that they do. This one is the most common among them: “I don’t want to deal with a real estate agent. It is more expensive to buy from them than straight to the seller.”

Well, actually it is both true and false, depending on the case and the kind of property the agent is selling. Let me explain.

If you are buying a new property from a developer, chances are good that the price is already fixed by the company’s Marketing Department. The real estate agent or broker can’t do anything about the price. He can’t lower the selling price or jack it up higher. Can you just imagine if the developer allows their agents do their own pricing? It would be a disaster since the prices would naturally be different and would therefore confuse the buyer.

The story would be different if the property is owned by an individual investor or seller. Here is a typical scenario if an individual seller would enlist the help of an agent in selling his property:

The seller comes up an amount he wants to pocket for the property. Naturally, this price already includes his profit. Sometimes he would price the property so much more to leave room when the buyer tries to negotiate the deal.
The seller would then say to the agent, “That’s already the NET price. It’s up to you to put your mark-up price. I want to take nothing less than that amount and the buyer will be the one to shoulder all other expenses.”

Questions: If you were the agent, at which price would you sell the property if the owner wants to take a net amount of P2,000,000.00? Would you be so kind to sell it at P 2M also without taking a profit? Or, would you mark it up to compensate for your efforts and marketing expenses? How do you think would other agents come up with their price?

Well, I hope that leaves you with something to think about, whether you are selling or buying a property. Take note that most agents are uncomfortable with marking up the price. They are always afraid that the buyer will discover the seller’s asking price and will try to out-maneuver them from the deal.

Technically, a real estate broker is different from a real estate agent. But for simplicity, here we treat them as the same way and refer to them using the term real estate agent or simply agent.

Again remember that if the property is being sold by a developer, the price is dictated by the company. In other words, it is much comforting (no negotiations, no counter-offers, etc) on your part if you buy from a developer instead of buying from an individual seller.

That said, it is worth mentioning that there are numerous advantages when you work with a competent real estate agent, among them are the following:

An agent saves you time and money looking for a property and the right financing.
A good agent is also updated with the latest in the local property market.
A buyer’s agent can help you negotiate the price.
An experienced agent has a network of other professionals like lawyers, interior designers, home builder, etc.
A good agent can assist you when something goes wrong with the deal, which is very likely to happen.

Who Should Get An Agent?

You already know the advantages of working with a competent real estate agent. It’s true that you can skip the services of an agent and buy direct from the seller, who is either a company of an individual. If you have all the time in the world, or you are confident enough of the whole process, you can do that. But I believe there are people who should be working with an agent to save them from trouble. If you belong to the following groups, I suggest that you really should hire the services of a good agent.

1. First-Time Home Buyers. If this is your first time to buy, don’t ever make a mistake of buying on your own. Buying a property is a complicated transaction which involves a lot of legalities you should be aware of. As much as possible get the help of an expert lawyer. And a competent real estate agent should be able to guide on the intricacies of buying and financing.

2. Relocating Buyers. It would be best if you are thoroughly familiar with the place where you wanted to buy. But for many relocating buyers, this is not always the case. This is where an experienced and long-time real estate professional can help.

3. Overseas Filipinos. The Philippines could seem a little strange if you have been away for a number of years. If you are based abroad, you will need at least two persons when buying a property here in your native country: a trust-worthy representative (usually a relative) and a good real estate agent. We are so low-tech here that a simple transaction is enough to make you lose your temper.

(Related article: Joining the Pag-IBIG Overseas Program.)

4. Busy People. Buying a property is very time consuming and very stressful, too. If you are so busy with work or business, you really should consider getting an agent.

5. Foreigners. We have some ways of doing things here that you may be doing differently at home in your country. Before you go nuts, it would be wise to have a good, competent buyer’s agent on your side to help you explain things.

Also don’t forget to do your part as a buyer of real estate. Use the Internet to conduct your own research of the property that you want to buy. This website alone offers a wealth of information that helps you become an educated buyer. Take time to read the other articles which interest you.

~~~

This article on working with real estate agents is written by Carlos Velasco.

Top 4 Reasons Why You Should Not Buy A House

by Pag-IBIG Financing Admin

I understand that most of you are visiting this website because, in one way or the other, you are contemplating a home purchase and that you want to use Pag-IBIG Home Loan to finance your investment. Indeed, we have come a long way in explaining the essentials of Pag-IBIG Housing Loan. From home buying preparation to the housing loan process and buying foreclosure units, we have already covered the most important stuff.

This article is a little bit different from the others we have made so far. It’s about not buying a house.

Yes that’s right. This is about NOT BUYING your piece of real estate. There are cases and situations when buying a house is a wrong move. As a matter of fact, there are people who should not even dare to look at a show house on display at a subdivision development or a condominium project. That’s harsh, I know. Bu if you belong to these groups of people, you would eventually thank me for giving that kind of suggestion. I’m doing this so you can keep your sanity intact and your money where it truly belongs: in your bank account.

You should not buy a house if…

1. You are a new kid in town

People do this all the time: they move from one place to another. They relocate to a new city as a result of their work assignment. They have a new business venture from out of town and they decide to move there to live. If you are in this situation, you should not buy a house immediately. Give yourself six months to one year to become familiar with your new place, its landscape, its people, and its political climate. If you are a family man and your wife and kids will be moving with you, you have to involve them in the decision process. Get input from your family members and your friends. You should use your common sense as well as your power for “feeling” a particular place.

Home buying is not like shopping for your grocery items. It takes a keen observation and careful attention to details. In choosing a place to live, you should consider such factors are the flow of traffic, location of schools, where people are shopping, the toxic and noisy areas of town and other similar factors.

My suggestion is for you to rent a place for six months to one year, before you jump into the home buying decision.

2. You can’t personally see the house

Consider the following messages we receive from Overseas Filipino Workers:

“Please help me buy a house in the Philippines. I’m still here in Canada, but I want to have my own house when I go back home for vacation.”
“Can I apply for a housing loan even if I’m here abroad?”
“Can you send me the Form to fill up when buying a condo?”

While it’s possible to buy a property even if you are based overseas, it may not be to your advantage. In fact, it invites a lot of surprises and frustrations later on when you have already made your commitment. Can you actually rely on the map sent to you by the real estate agent? How about the sleek brochures and presentations online on the developer’s website? Do you find them attractive? Can you tell which information and defects are not being shown to you?

Nothing beats actually seeing the property yourself.

3. Your marriage is down the sink

More Home Buying Tips If your Facebook Civil Status says, “Complicated,” you should consider a second opinion, or even third, when deciding to buy a house. Well here’s my short opinion: Don’t buy. Put the reservation money back in your wallet.

There are couples who think that buying a home could somehow save their already dysfunctional relationship since it would require committed efforts from both parties. But isn’t sticking to a commitment the primary reason for the shaky relationship in the first place? While I am not a marriage counselor, I’ve seen enough marriage problems being finally brought up eventually when applying for a loan or transferring the land title to your name.

Like it or not, remember that we still don’t have divorce here in the Philippines. So, think twice before buying your dream house.

4. You are not financially fit to buy

Your home is one of the most expensive items you’ll ever buy in your lifetime. Can you buy in a single spot cash payment? For many of us, that’s unlikely to happen. That’s why we need a mortgage loan. And remember a loan will cost you money. It comes with an obligation you have to keep for a much longer time. Otherwise, the consequences would be dire and stressful.

Think about the 20% to 30% down payment. Where would you get that money? How much loan can you possibly afford to pay on a monthly basis?

(Related article: Income Requirement vs Loan Amount)

Are you aware of the other expenses that you need to prepare? We suggest that you prepare at least another 5% of the cash price for miscellaneous expenses and another 20% or so to buy your furniture and appliances.

Further Notes:

Perhaps for ethical reasons or due to the nature of their business, you probably won’t hear a real estate broker or agent give you any of the advice against buying a real estate. For them it’s always time to buy. But hopefully, after reading this article, you already know much better.

You have to know what you are doing. After all, you’re the one paying for the property.