Pag-IBIG Financing Admin

Money Matters: Pag-IBIG Fund Provident Savings and Provident Claims

Every member of the Home Development Mutual Fund — or anyone who desires to be one – should know that there are basically three types of benefits that are available to qualified members. They are the following:

1. Short-Term Loan — This is the Multi-Purpose Loan Program of the Pag-IBIG Fund that is payable in 24 months. The one thing that makes it unique is that the loan amount that can be granted to you is dependent on your “savings” with the fund. Let’s discuss the savings part in the succeeding paragraphs. A lot of people call it with many names such as personal loan, salary loan, cash loan, etc. It doesn’t matter what name you call it, you can use the proceeds anyway you want.

Click this link to know more about the Pag-IBIG Short-Term Loan Program.

2. Housing Loan — To many of its members, the Pag-IBIG Fund is almost synonymous with Housing Loan. This is a long-term home loan program that qualified members can tap in order to finance the purchase of a real estate in the Philippines. The article entitled Pag-IBIG Housing Loan 101 is a good place to start learning about this program.

3. Provident Savings — Your contributions to the Fund are like your Time-Deposit Account in the bank. It earns interest overtime and you can withdraw it, too. We’ve already mentioned a few things about this in the past article, but here we’ll elaborate more in this article, so keep reading.

Provident Savings — What Is And How It Works

Pag-IBIG Money Savings and Claims I searched for the meaning of the word “provident” and I got a good response. Provident (an adjective) means “making or indicative of timely preparation for the future.” Thanks Google, I don’t have to open my good old dictionary.

The meaning of the word “savings” should be easy, right? It is explained below.

Savings here refer to your membership contributions to the Pag-IBIG Fund. If you really think about it, that’s your own money that you “saved” with the fund. If you are locally employed in the Philippines, you know for a fact that your employer is also mandated by Law to contribute to your savings.

The Pag-IBIG Fund is one huge organization that pools together all the savings of all its members and invests that money by financing real estate development projects and mortgage loans which would eventually be beneficial to its members. As such, this money is expected to grow, or earn, over the course of time.

As a member, you must also be aware of the term Total Accumulated Value (TAV), which is your total contributions plus that of your employers (if you are employed) and the dividend earned by that money.

So essentially, Provident Savings is the TAV money which you can claim in some future time as a result of becoming a member of the Pag-IBIG Fund.

Provident Claims Or How To Withdraw Your Money

This part is exciting and irritating as well.

Here’s a minor irritation you have to deal with: you can’t just get your money anytime you need it. There are set guidelines on when you can apply for provident claims.

Here are the six instances when you are entitled to get your money from the Pag-IBIG Fund. The document requirements are also listed for each of the respective category of provident claims.

1. Membership Maturity – Regular members of the Pag-IBIG Program or the Pag-IBIG I can apply for provident claims upon maturity of their membership. Maturity here means having made an equivalent of 240 monthly contributions, so that’s roughly 20 years. (See the Basic Document Requirements below.)

Members of Pag-IBIG Overseas Program have their maturity date set from 5 to 20 years. They are advised to have their POP Passbook when applying for the provident claim.

2. Retirement – The retirement can be as early as 45 years old to the mandatory age of 65. The following are the important documents to bring:

Notarized Certificate of Early Retirement (For Private Employee, at least 45 years old)
SSS/GSIS Retirement Voucher or any two valid IDs
For AFP, Philippine Navy and Army Personnel (Any of the following: Order of Retirement, Updated Statement of Service, Statement of Last Payment )

3. Separation from the service due to health reasons

Important Documents:

Physician’s Certificate/Statement
Notarized Sworn Employer’s Certification that member was separated from the service due to health reasons
Latest SSS Disability Voucher (For Private Employee)

4. Permanent and Total Disability or Insanity

Important Documents:

Physician’s Certificate/Statement of Insanity
SSS Total Disability Voucher (If Private Employee)
For AFP, Philippine Navy and Army Personnel: ( Updated Statement of Service, Statement of Last Payment, Compulsory Disability Discharge Order)

5. Permanent Departure from the country

If you have another to call home and you finally said goodbye to the Philippines, here are some documents to prepare:

Notarized Sworn Declaration of Intention to Depart from the Philippines Permanently
Photocopy of Passport
Any of the following : Immigrant Visa, Residence Visa, Settlement Visa

6. Death

That dreaded word. Beneficiaries or heirs should prepare the following documents:

Member’s Death Certificate issued by NSO
Certification from Funeral Parlor
Notarized Proof of Surviving Legal Heirs
Notarized Affidavit of Guardianship (For children 18 years old and below, or physically/mentally incompetent)
Birth Certificate of all Children, if any, issued by NSO or Baptismal/Confirmation Certificate

To establish relationship with the deceased member, the claimant shall submit any of the following:

Member’s / Claimant’s Birth Certificate issued by NSO
Member’s Marriage Contract, if married, issued by NSO
Certified True Copy of Member’s/Claimant’s Baptismal/Confirmation Certificate
Certificate of No Marriage (CENOMAR) (For Single Only)

Basic Document Requirements

On top of the document requirements above, the following document should come handy:

Duly accomplished Application for Provident Benefits (APB) Claim
Two (2) valid IDs
Updated Service Record (For government employees)
Special Power of Attorney and two (2) valid IDs each of the Principal and Attorney-in-Fact (If member cannot claim personally)

~~~

“Money Matters: Pag-IBIG Fund Provident Savings and Provident Claims” is written by Carlos Velasco.

Home Loan Restructuring Program

by Pag-IBIG Financing Admin

It all started with delayed or missed payments against the home loan obligation.

Those who have been granted a Housing Loan by the Pag-IBIG Fund should be aware that three (3) missed payments on the monthly amortization could lead to foreclosure — a sort of disaster.

What would you do if your property is on the brink of foreclosure and you are facing financial difficulties as well?

We can’t tell how many of our visitors are into that situations.

If you know someone who is facing foreclosure, or has already defaulted on their amortizations, please help them out by sharing this article. This article could save them, or their house for that matter.

A Visitor’s Comment: “Last year my husband applied for a housing loan and it was approved, but now we have missed more than 3 payments. Is it possible to repay the missed payments and reduce the mortgage term of the loan? What step should we do? Thanks!”

Special Note: Pag-IBIG Fund is currently running a Housing Loan Restructuring and Penalty Condonation Program. The program started last January 2, 2012 and will end June 30, 2012. After June 30, only the loan restructuring will be entertained. Members who have missed paying their monthly amortizations for more than three (3) months may avail of this program.

Condonation means the relief given by law in the payment of penalties, surcharges and a portion of accrued interest to be determined by the Pag-IBIG Fund.

Loan Restructuring refers to a process where the principal terms and conditions of the original loan are modified in accordance with an agreement setting forth a new plan of payment or a schedule of payment on a periodic basis.

Loan Restructuring : Refinancing Under Financial Distress

Pag-IBIG Housing Loan Restructure There are many reasons why borrowers default on their loan payments. Luckily for the Pag-IBIG members, there’s a Loan Restructuring program that they can take advantage of as a remedy to their delinquent accounts.

Here are the benefits of the Loan Restructuring Program:

It allows the home owner to save the property from being taken away from them through the foreclosure process.
It allows the borrower to shorten or lengthen (and thus the term “restructure” ) the term of the loan, whatever is deemed an affordable loan term for him.
Interests and penalties due during the delinquency period could be waived.

Who Can and Who Can’t Apply For the Home Loan Restructuring Program?

Member-borrowers who have not yet availed of any penalty condonation program from any Government Financial Institution, for example, HDMF, GSIS, SSS.
Borrowers who have missed payments on their monthly amortizations for at least 3 months.
Borrowers whose property was already endorsed for foreclosure, but whose redemption period has not yet lapsed.
Borrowers whose property was already foreclosed but the winning bidder is the Pag-IBIG Fund.
Legal heirs of deceased borrowers with unpaid loan balances after application of the proceeds of the Mortgage/Sales Redemption Insurance (MRI/SRI).
Successors-in-interest of borrowers who have assumed the original mortgage as supported by legal documents duly approved by the Fund.

However, Pag-IBIG is very strict against some accounts that should not be eligible to avail of this program. The following accounts are exempted from tapping this benefit:

Any account without a single payment since takeout, including those whose only payment resulted from its deduction from the takeout proceeds.
An account in which the housing unit has been abandoned by the borrower for more than one (1) year from date of delinquency.
An account in which the housing unit is occupied by a third party other than the original registered beneficiary or his/her legal heirs or successors-in-interest.
An account that has been foreclosed and another party is the winning bidder.
An account that has been foreclosed and with expired redemption period.
An account under a Contract-to-Sell that has been cancelled.
An account that has been surrendered to the Fund through Dacion en Pago, the title of which had been consolidated or transferred in the name of the Fund.
A Contract-to-Sell account covered by the developer’s buyback guarantee.

About The New Restructured Housing Loan

The following are among the most important things you should know about the new restructured loan.

Loan Term — The Home Development Mutual Fund offers a very generous loan term of up to 30 years on the newly restructured housing loan. However, it should be noted that the age of the borrower must not be more than 70 by the time the loan matures.

Interest Rate — The interest rate is 12% per annum or the rate of the original loan, whichever is lower and must be applied against the interest-bearing portion of the loan amount.

Penalty — If the borrower fails to pay any amount due on or before the due date he will charged a penalty of one-twentieth of one percent (1/20 of 1%) of the amount due for the month per day of delay.

Repricing — If the original loan amount is more than Three Hundred Thousand Pesos (P300,000.00), the new restricted loan shall be subject to repricing every three years, reckoned from the date of approval of loan restructuring.

Compare This With: The Current Rates of Interest and Penalties of Pag-IBIG Loans

What To Do Next?

If you are now so eager to restructure, please visit the Pag-IBIG Office that has the jurisdiction of your account and possibly your mortgaged property. Inquire about the full details of this program.

Plus, remember that the penalty dues will only be condoned when you apply not later than June 30, 2012. (As far as this current program is concerned.)

After reading this article, I hope that you will share this to a friend who is also a member of the Pag-IBIG Fund just so he/she knows what to do when foreclosure clock begins to tick.

~~~

“Home Loan Restructuring Program” is written by Carlos Velasco.

Pag-IBIG Real Estate For Sale, January 2012

by Pag-IBIG Financing Admin

It looks like we haven’t posted any property for sale lately.

This feature may not be the core focus of this website, but it is among the most important for our visitors — both the sellers and the buyers of Pag-IBIG Real Estate in the Philippines.

Needless to say, this site provides a means where buyers and seller virtually make a deal when it comes to a Pag-IBIG property. Whether it’s a house, a condo unit, or a vacant lot you are looking for or you are selling, you’ll find it listed here for free.

For this year, here is our first deal:

A Condo Unit is a quite community in Quezon City
A vacant prime lot in San Fernando, Pampanga
A number Townhouse units

Take note that they were submitted by three different people. So if ever there’s one particular property that you are interested with,
make sure that you read the contact details of the person in charge of the property so you know whom to deal directly.

Again, if you have any property that you want to sell, anywhere in the Philippines, you can post it here. Please take time to
visit the Pag-IBIG Marketplace section for the details on how to post your property.

Property #1 : Condominium in Quezon City

Location: Congressional Avenue, behind Cherry Foodarama
Selling Price: Total Price: 1.550M;
Asking Price: P 500k equity (As of January 2012)

Note : Assume balance from Pag-ibig of 1M (12.5k monthly for 14yrs) (NEGOTIABLE)

Condominium in Quezon City

Property Description:

22sqm., 1- bedroom. Fully Furnished, with Aircon, Bed, Cabinets, Table, Nice Lights, Ref, etc.
With OWN terrace and intercom.
In a quiet subdivision but with very accessible public transportation.
Near malls (SM North Edsa, Trinoma);grocery shops (Cherry Foodarama, Robinsons Circle C, SNR, WalterMart, PureGold, etc.);churches (San Nicolas Parish, Charbel Church, etc);
schools (Colegio de San Lorenzo, UP Diliman, Ateneo, Miriam, St. Paul, etc); hospitals (Veterans Hospital, Capitol Medical Center, Phil. Heart Center, Lung Center, NKTI, etc.)

This condominium is brand new, built in 2010. No one is living here, as we already have a house which is more conducive for a growing family.

You will love this place as it is situated in a quiet environment, yet it has all the convenience of a condominium community (w/pool, etc).

Contact Details of The Seller:

Name : Rosalyn Fernandez
Email Address : mrvffernandez@yahoo.com.ph

Property #2: Prime Residential Lot in San Fernando, Pampanga

Location: San Fernando, Pampanga
Selling Price: 700,500.00

Property Description:

Lot Size :150 sq m.
Located in Phase 11 Beverly Hills Residential and Business Estates
has 18-hole golf course, clubhouse, swimming, tennis, badminton courts
walking distance to SM and Robinson’s
San Fernando
concrete road, ready for housing
Clean Title, land taxes updated

Prime Residential Lot in Pampanga For Sale

I am selling this lot so I can use the funds for small business capital. I reside in another province and I bought this for investment as it is in a prime location and the real estate value increases because of the golf course and the commercial malls that are near.

Prime property location walking distance next to SM San Fernando and Robinsons Pampangga in Phase 11 close to golf course and clubhouse with the great security of whole subdivision makes it a very worthwhile investment.

If you are planning to live in San Fernando, this place is ideal to build a home.

Contact Details of the Seller:

Name : Maria Salvacion S. Santos
Email Address : marisa_santos_ph@yahoo.com

Cell phone In The Philippines :
Smart mobile 09184358794
Sun mobile 09322585776
Roaming number 09495744273

Property #3: Sta Rosa Townhouse near SLEX/Coke

Property Description:

2- Storey Townhouse unit with a floor area of 57.2 sqm and a typical lot area of 43 sqm
with provision for 2 or even 3 bedrooms.
With complete electrical and water system.
A flood free project near the South Luzon Toll Gate, with a well designed drainage system.
And a perimeter wall all around for your safety.
Makati is just 30 to 45 minutes away. Tagaytay and Los Banos resorts are just 20 to 25 minutes away.
It is near Walter Mart and Enchanted Kingdom, Balibago, Sta. Rosa Bayan and just 10 minutes way from Malls (Target and SM).
Close also to schools and public transport system.

Typical payment computation for an inner unit:

Reservation: P 10,000
Downpayment: P 7,149.12 /mo for 15 mos
Pag-Ibig: P 4,990 /mo for 30 years

For inquiries, contact agent:

Name : Ernie
Email Address : riguerland@yahoo.com.ph
Cell Phone : 09296021088

7 Most Popular How-To’s On Pag-IBIG Fund

by Pag-IBIG Financing Admin

Since this website has been online, the Pag-IBIG Financing Team has encountered questions that are repeatedly asked by site visitors. Of course, we have made the FAQ section to address some of the most common questions that they raise. But, as it appears, a lot of folks seem to overlook that page when searching for the answer to their questions. That section should be the first stop for anyone who wish to find some answers related to Pag-IBIG Fund and its services.

This article is also a handy guide to the How-To type of questions that we received from site visitors.

We hope that by providing this, you’ll easily get access to the right information that you are seeking. Please browse the whole article to see if you also have similar queries.

1. How To Apply For A Pag-IBIG Housing Loan

This is one is the favourite questions of most Pag-IBIG Fund members. Here’s a sample inquiry that we received: “I would to ask how can I make a loan. I was planning to buy a parcel of land somewhere in Laguna but I have no idea on how to apply for the loan and what the procedures are.”

Best Answer: The Pag-IBIG Housing Loan Process.

2. How To Pay the Pag-IBIG Fund

For the locally employed Filipinos, this one should not be a problem since their employers should take care of this by way of salary deduction.

But for the self-employed and the Overseas Filipinos, here are some of the best ways to send your payment: 5 Ways To Pay The Pag-IBIG Fund.

Note: You may choose to pay monthly or quarterly. It is always best if you can pay over the counter, at the collecting office. And for all your payments, make sure that you keep the Official Receipt as evidence of the payment.

3. How To Apply As Voluntary Member

The mandatory membership to the Pag-IBIG Fund has already been expanded to include the Overseas Filipino Workers. Please consult article we had about the Home Development Mutual Fund Law of 2009 to check if you are under the mandatory coverage or not.

Now, here’s a list on who can become voluntary members to the Pag-IBIG Fund.

Non-working spouse, provided the other partner is also a member
Filipino employees of foreign government or international organization, or their wholly-owned instrumentality based in the Philippines, in the absence of an administrative agreement with the Fund
Leaders and members of religious groups
A member separated from employment, local or abroad, or ceased to be self-employed but would like to continue paying his/her personal contribution
Public officials or employees who are not covered by the GSIS

Here’s how to apply as a voluntary member.

4. How To Apply For A Short-term Loan

pag-ibig financing how-to Whether you want to call it a Personal Loan, a Salary Loan or by any other name, it belongs to the Short-term Loan program of Pag-IBIG.

Here’s how to apply for a short-term loan.

5. How To Withdraw Your Savings

Take note that your total savings, also called Total Accumulated Value, is the sum total of all your contributions, that of your employers (if applicable), plus the accumulated dividends.

But, you can’t just withdraw it anytime as you would your savings bank account. You should know about specific guidelines on how to withdraw that money.

6. How To Check If You Qualify For a Home Loan

Nothing can be so annoying than spending some previous time applying for a home loan only to be denied because you did not qualify. You can do a lot in the way of preparation.

Here’s how to do a pre-qualification before you go to the office and apply for a home loan.

7. How To Check My Membership Status, Contributions and Payments, etc.

There are some questions that only the Pag-IBIG Office or branch can answer. This one is among them.

However, you may want to read this Q and A about your Pag-IBIG Membership.

~~~

“The 7 Most Popular How-To’s On Pag-IBIG Fund” is written by Carlos Velasco.

Joining The Pag-IBIG Overseas Program — Is It Really Worth It?

by Pag-IBIG Financing Admin

Did you know the difference between the Pag-IBIG Overseas Program and the regular Pag-IBIG Program, likewise known as Pag-IBIG I?

Most OFWs assume that since they are based overseas, they should be getting the Pag-IBIG Overseas Program, as they are now compelled to become members of the Pag-IBIG Fund.

Well, that’s not really the case.

Let me explain further by citing in part a message sent to us (via an article comment) by a site visitor who is an OFW based in Singapore.

I am an OFW since December 2008, and I stopped my contribution the same date. Last month, October [2011], I started to contribute again in one of your outlets here in Singapore. Since I Don’t know my Pag-ibig account no., they just gave me a new one temporarily. And they said its ok.. and can add up that to my old Pag-ibig account if i will activate the status of my old account…

1. Is it true?

2. How come? like for example if i want to avail a housing loan? you mean i need to wait for me to complete my ofw 24 months contribution?

3. Then hows my 4 years local contribution? is it like forfeited?

Actually I let my father follow up that today in the philippines. then one of the staff said that my local contribution is different from ofw and cannot combine it.. for me to have a housing loan.
what to do.?? please help. It’s so confusing po. thank you admin.

From that letter, let’s discuss the following topics as they relate to the Pag-IBIG Overseas Program and the regular Pag-IBIG membership a.k.a. the Pag-IBIG I.

POP vs Pag-IBIG I – Know the Difference
The past contributions

Let’s elaborate each of these subjects.

The Pag-IBIG Overseas Program vs The Pag-IBIG I – What’s the Difference?

You may not know it yet, but you can contribute to the Pag-IBIG Fund in the following manner:

Pag-IBIG I — This is the regular Pag-IBIG membership. During the inception of the Home Development Mutual Fund, this is the only membership type that’s available. As time passes, the program has grown to offer special service coverage for the Filipino workers based abroad. They rarely call it Pag-IBIG I now, but it got the name because the organization has introduced the Pag-IBIG II program.
Pag-IBIG II — This is a savings program, which is supposedly offering a higher rate on your money compared to the annual dividend earnings of your Pag-IBIG I money. You can only participate with Pag-IBIG II if you are a member of the Pag-IBIG I.
Pag-IBIG Overseas Program — Abbreviated as POP, this program was originally intended for the overseas Filipinos who wanted to become members of the Pag-IBIG Fund. This one is different and separate program from Pag-IBIG I.

(Related topic: Please check our previous article, which discusses in some details the POP Program.)

Pag IBIG Overseas program

However, since the passage of the Home Development Mutual Fund Law of 2009, where OFWs are already required to become members of the Pag-IBIG Fund, this program has been relegated to the side.

Important Tip: OFWs who are not yet members of the Home Development Mutual Fund should choose to enrol in the regular Pag-IBIG Program and not the POP. This is the only kind of membership required of you. With this program, you are already entitled to all of the benefits available to Pag-IBIG Fund members.

The Past Contributions

This scenario is very common: Before going abroad to work as an OFW, most Filipinos are already members of the Pag-IBIG especially those who have work experiences locally here in the Philippines. By the time they go overseas, they lose track of their membership and just forget about the whole thing — no more updated contributions; any existing Multi-Purpose Loan obligation is forgotten, etc.

If this is your case, remember the following:

All your past contributions to the Pag-IBIG Fund will stay there and will continue to accumulate dividend as the time passes, unless you happen to have an MPL Loan which you are not paying anymore.
Non-payment of your MPL puts a lien on your Total Accumulated Value (TAV) – that’s your money, contributions plus dividends. What will happen is that Pag-IBIG will use your TAV to pay for your personal loan. (That’s the reason why you are only granted a percentage of your TAV for your MPL loan.)
You can always activate your regular membership by contributing anew.

If you have some more questions related to this topic, please feel free to use the comment form below. We may have to update this article depending on the questions that we get.

The title of the article has raised this question: Is it really worth joining the Pag-IBIG Overseas Program?

What do you think? You be the judge. Make sure you also read the related articles cited as links on this article. Don’t hesitate to send us your opinions.

~~~

“Joining The Pag-IBIG Overseas Program — Is It Really Worth It?” is written by Carlos Velasco.

Loaning With No Income Tax Return

by Pag-IBIG Financing Admin

Here’s another letter that we’d like to share to every reader of this website. It’s about the use of the Income Tax Return as a requirement in applying for a Housing Loan. The letter is shown below.

“I want to become a member of [the] Pag-IBIG Fun. My question is, is it possible na maging voluntary member ako kahit wala akong ma-present na ITR [Income Tax Return]? Hindi kasi ganun kalaki ang kinikita ko eh.

“Hope you respond to this.

“Thank you so much.”

With reference to the letter presented above, we’ll limit the discussion on this article on the following points:

Membership To The Pag-IBIG Fund
Income Tax Return and Other Requirements
Income Requirement

Locally employed individuals, freelancers, practicing professional, and operators of a small business in the Philippines who are interested about the Housing Loan Program of the Pag-IBIG Fund should pay attention to this article as we elaborate on the details in the succeeding paragraphs.

Mandatory Coverage

By now, you should be aware already that under the Home Development Mutual Fund Law of 2009, the following are mandated to become members of the Pag-IBIG Fund:

Locally employed Filipinos who are compulsorily covered by the SSS and the GSIS
Self-employed Filipinos with an income of at least P 1,000 / month
Overseas Filipino Workers
Filipino Seafarers
Uniformed members of the AFP, BFP, BJMP and PNP
Household helper earning at least P 1,000 per month

For these groups of people, there is no other choice but to become members of the Pag-IBIG Fund.

Voluntary Membership To The Pag-IBIG Fund

However, for the rest who also wanted to join as members, a Voluntary Membership to the Pag-IBIG Fund is available. If you should want to take this opportunity and become a voluntary member, take note of the following.

You are self-contributing – That is, there is no employer counter-part to your membership contribution unlike the case for the locally employed members.
Salary Deduction is NOT an Option – This should be obvious from #1 above.
You may or may not be granted a housing loan. It’s important that you can demonstrate a proof that you are earning. More about this later.

Income Tax Return and Other Document Requirements

Here’s a recap of the basic document requirements for the Housing Loan Application:

Housing Loan Application
Approved membership Status Verification Slip
Transfer Certificate Title / Condominium Certificate Title – Must be a certified true copy
Tax Declaration – Photocopy of the updated one
Location plan and vicinity map

In addition to the above documents, the following are also considered as basic requirements…

Housing Loan Document Requirements For The Self-employed or Business Owner

Now, if you happen to be a practicing professional (dentist, architect, accountant, etc), an owner / operator of a small business (more specifically a business structured as a single-proprietorship), or self-employed, the Pag-IBIG Fund says you need the following when applying for a Home Loan Program:

1 year Income Tax Return (1 yr)
Audited Financial Statement
Official Receipt of Tax payment from the Bank, DTI Registration, Mayor’s Permit

As such, there’s no escaping the ITR for self-employed and voluntary members.

Housing Loan Document Requirements For The Employees?

For the locally employed, ANY of the following must be presented:

Notarized Certificate of Employment and Compensation (Pag-IBIG Format)
Notarized Certificate of Employment and Compensation (Employer’s Format) and 1 month latest Payslip/Payroll (certified by the employer)
Income Tax Return / Certificate of Tax Withheld (W2-Form 2316) and 1 month latest Payslip/Payroll (certified by the employer)

In other words, for the locally employed, the ITR is only optional. In lieu of that, you may use a Certificate of Employment and Compensation from your employer.

For a complete list of requirements, please visit this article.

Income Requirements

The letter sender above must a little bit worried about getting loan when she declared, “Hindi kasi ganun kalaki ang kinikita ko eh.”

Having a large income is certainly advantageous in almost any business dealings when you apply for a real estate loan. That is, a bigger income gives you a better chance of getting a bigger loan amount also; and therefore, a bigger house.

But take note, Pag-IBIG Fund was created to make it easier for the low- and mid-income Filipino families to own a decent home by gaining access to a housing loan program that offers a lower rate and longer payment terms compared to the other financing institutions like banks.

When buying a real property and financing it using the Pag-IBIG Home Loan program, the following tips should be helpful to you:

Determine Your Budget for the House – As much as possible, it should not exceed 30% of your combined household income.
Loan Term – How much is it going to cost you on a month to month basis if you will be paying the loan in 15 years, 20 years or 30 years?
Consider Getting a Co-Borrower – This must be avoided as much as possible. But if you really need that property, this is an option to take. (Follow this article for more options.)

“Loaning With No Income Tax Return” is written by Carlos Velasco.