Pagibig Financing

Pag-IBIG Fund, Housing Loans, Mortgage, Membership, Foreclosures, etc

Land Title

Land Title : How To Register and Transfer It In Your Name As The Real Estate Buyer

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When applying for a Pag-IBIG Housing loan, only two things can happen: Your loan application is either approved or disapproved.

Once your loan application is approved, the real work is just about to start. The most important, and tiring process here, is the registration and transferring of the Title in your name as the buyer of the real property – whether it is a lot-only property, a house and lot, a townhouse or a condominium unit.

Depending on the kind or property that you are buying the Title here can mean any of the following:

  • The Certificate of Land Title, which is also known as the Transfer Certificate of Title (TCT)
  • The Condominium Certificate of Title (CCT)

( Related: What if my housing loan application is disapproved? )

Title Registration and Name Transfer

Sample Land Title in the PhilippinesIf you are buying a new property from a real estate developer, or through its marketing arm, they should be able to assist you in the registration and transferring of title in your name. This is one of the advantages of buying from a developer instead of purchasing a property from an individual seller, where the burden of registration is placed on the buyer.

Of course, you can always opt to register the property by yourself, if that’s fine with you and you don’t mind going through the whole process. Again, as already mentioned, if you are buying from an individual, you have to do the legwork of title registration.

In any case, we have outlined below the series of step you need to take to be able to properly register the Title of the property and have it in your name.

(See also : Citizenship, Land Ownership and Pag-IBIG Fund Membership )

STEP 1: Get A Certificate Authorizing Registration

  1. Go to the office of the Bureau of Internal Revenue (BIR)
  2. Once you are at the BIR, present the Deed of Absolute Sale (DOAS), and Loan and Mortgage Agreement (LMA)
  3. Request for the computation of the Documentary Stamps and Capital Gains Tax.
  4. Then proceed to the designated bank and pay for the Documentary Stamps and the Capital Gains Tax. (Usually this is the Land Bank of the Philippines.)
  5. Go back to the office of the BIR and your Bank Receipt
  6. Finally, request for the issuance of Certificate Authorizing Registration (CAR)

STEP 2: Request Issuance of New Title

  1. Proceed to the Registry of Deeds and present the following documents: DOAS, CAR and LMA.
  2. Pay transfer tax and registration fees
  3. Request for the following:
    • Issuance of new Title under buyer’s name with proper annotation
    • Certified true copy of new title (owner’s copy)
    • Certified true copy of new title (RD’s copy)
    • DOAS stamped received, LMA stamped received

STEP 3: Pay Tax Declaration

  1. Proceed to the Assessor’s Office
  2. Present the new Title with your name
  3. Pay for the issuance of the new Tax Declaration under the buyer’s name
  4. Secure a copy of the new Tax Declaration

Take note that the steps just presented are just a part of whole Housing Loan Application Process — probably up to the loan approval stage but prior to the release of the loan proceeds. After you are done with Step 3 above, which is the most critical and time-consuming of them all, you have to go back to the Pag-IBIG Fund office or branch that approved your loan application. Present all the necessary documents required for the release of the loan proceeds.

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This article on Title Registration is written by Carlos Velasco.

Learn The 5Cs of Credit To Improve Your Chances Of Getting A Loan

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One of the funniest definitions of a bank comes from Bob Hope. According to him, “A bank is a place that will lend you money if you can prove that you don’t need it.”

How true! It simply means that as a lending institution, the bank will consider a number of factors before granting you a loan. Just because you need a loan doesn’t mean you will get it.

Well, more or less, the same can be said of Pag-IBIG Fund. Just because you are a member of Pag-IBIG doesn’t automatically mean that you will get a loan anytime you want to.

However, your chances of success will be greater once you are aware of the most important factors they are considering when you apply for a loan, whether personal loan or housing loan.

Remember these so called 5 Cs of Credit and see how you can apply it in your respective situations.

1. Character

What sort of person are you from the point of view of the Loan Officer? Are you someone who can be trusted with the loan? Are you most likely to pay it on time or are you the one who will most likely be a candidate of loan defaults?

How long have you been a member of the Pag-IBIG Fund? How long have you been in your work or profession? Your employment record is one of the factors they consider in the evaluation process.

See also: Getting a Pre-Qualification.

2. Capacity

How much is your salary or income? This will determine how much you can set aside to pay for the monthly amortization.

In general, the bigger the income, the better your chances of being approved. But don’t fool yourself. A lot of high-income professionals also maintain a high-maintenance lifestyle. But it all really boils down to how much is left before the next payroll takes it toll.

How much can you safely borrow? Pag-IBIG has a maximum limit of PhP 3M for the housing loan. Unfortunately, the maximum limit is not for everyone to enjoy. Your loan amount will most likely depend on your capacity to pay for it.

See also : Can You Afford That House?

3. Capital

This is another word for Equity or in some cases, it also refers to the down payment. How much of your own money do you put at risk? A large equity means you are serious about the venture that you are willing to expose that much for the property you are buying.

See also : Mortgage Loan Fundamentals

4. Conditions

What is the current state of the economy? If it is shaky, your loan application will also be drastically affected. Interest rate, which also determines the cost of using borrowed money, may also rise in response to a downturn in the economy.

What industry are you presently employed? Is it a booming industry?
How is your employment status? Are you likely to stay with your employment for the next 5 or 10 years?

5. Collateral

What are you willing to back up your loan with? In a housing loan, this one simply means the Land Title, which must be in the name of the borrower.

It only makes sense. With the collateral at stake, you will most likely meet your obligations on the loan than lose your collateral.

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The 5 Cs of Credit is written by Carlos Velasco.

The Pag-IBIG Housing Loan Process

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This can be filed as one of the frequently asked questions: “How can I apply for a Pag-IBIG Housing Loan?”

This article addresses that question in a very straight-forward and easy-to-understand manner.

So without further ado, here are the steps to take.

Step #1: Attend The Loan Orientation. Officially, it’s called Loan Counselling Session. It’s conducted at any Pag-IBIG Office all over the Philippines. Check your nearest Pag-IBIG Fund office to check their scheduled Loan Counselling Session.

Step #2: Fill Up Some Documents. Normally, you will be asked to accomplish the following documents:

  1. Preliminary Counselling Questionnaire – Some basic questions that are easy to answer.
  2. Membership Status Verification Slip (MSVS) – This will be used by the assigned staff to check your records and contributions to the Pag-IBIG Fund.
  3. Housing Loan Application (HLA) – This is the official document where you signify your intention of getting a loan.

If you are qualified for a loan, you will be given the Checklist of Requirements (COR) depending on the purpose of your housing loan. Fill-up the HLA only after knowing your status. (Read Step 3)

Related: Are you qualified for a Pag-IBIG Housing Loan? Click here to find out.

Step #3: Submit HLA And Other Required Documents. This will probably take a couple of days to comply. But once all of the documents in the requirement checklist are ready, submit them together with the Loan Application Form. You will be asked to pay the processing fee, which is non-refundable.

Step #4 Wait for The Notice of Loan Approval or Letter of Guaranty. Or if you can’t wait on your mail box, phone them to follow-up the status of your loan application.

Step #5. Sign Loan Documents. There are some and will be provided at the Pag-IBIG Fund office.

Step #6: Visit the Bureau of Internal Revenue and Registry of Deeds.

  • Pay for the documentary stamps and capital gains tax at the BIR.
  • Have the Registry of Deeds put an annotation of mortgage on the Land Title.

Step #7. Get Loan Proceeds. But you have to show Pag-IBIG Fund the following documents:

  • Original Transfer Certificate of Title (TCT) in the name of the applicant with annotated mortgage
  • Deed of Absolute Sale with original stamp from the Registry of Deeds
  • New Tax Declaration in the name of the applicant
  • Updated Real Estate Tax Receipt (for house and lot, if applicable)
  • Occupancy Permit (secured from LGU Engineering Office, if applicable)
  • Assignment of Loan Proceeds

That’s it for the Pag-IBIG Housing Loan process — only seven steps.

Most likely, you will also be asked to make an advanced payment on the first monthly amortization immediately following the loan release. So have your cash or check ready.

Further Note: If you are buying a property from a real estate developer, this whole process would be easier. All that are needed is for you to follow Steps 1 to 3. Ask your agent or broker if he/she can assist on the housing loan application most often you will be extended an assistance.

Other Articles Related to Pag-IBIG Housing Loan:

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The Pag-IBIG Housing Loan Process is written by Carlos Velasco in response to website visitor requests.

Pag-Ibig Housing Loan Requirements

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So you’ve finally decided to invest in real property using Pag-IBIG Housing Loan?

You figured that it’s about time that you apply for that Pag-IBIG Loan after all those years of faithful contributions to the Pag-IBIG Fund.

Now you ask yourself: “What are the requirements to avail of Pag-IBIG Housing Loan?”

There are standard requirements asked from the applicant upon Loan Application and prior to Loan Approval.

Additional requirements will also be asked from the applicant when deemed necessary by the Pag-IBIG Fund.

Documents Required Upon Loan Application

  • Housing Loan Application (HLA) notarized with ID photo – original copy
  • Approved Membership Status Verification Slip (MSVS) – original copy
  • Certified true copy of Transfer Certificate Title (TCT) of the property by the Registry of Deeds (latest title)
  • Photocopy of updated Tax Declaration
  • Location plan and Vicinity map

For Employed Pag-IBIG Members:

  • Notarized Certificate of Employment and Compensation (Pag-IBIG Format)
  • Notarized Certificate of Employment and Compensation (Employer’s Format) and one month latest Pay Slip
  • Income Tax Return/Certificate of Tax Withheld (W2 – Form 2316) and one month latest Pay Slip

For Self-Employed Pag-IBIG Member:

  • Income Tax return (one year) with Audited Financial Statements and Official Receipt of tax payment from Bank
  • DTI Registration
  • Business or Mayor’s Permit

For Pag-IBIG Overseas Program (POP):

  • Employment Contract or Employer’s Certificate of Income, duly certified by the employer (with English translation if in foreign language) or other valid Proof of Income
  • Special Power of Attorney (SPA) notarized prior to date of departure or duly certified and authenticated by the Philippine Embassy or Consulate in the country where the member is staying, for members abroad

See also: Top 5 Things Every OFW Should Know About The New Pag-IBIG Law of 2009

Additional Requirements

pag-ibig housing loan application
Depending on the purpose of your housing loan, Pag-IBIG may ask that you submit the following upon Loan
Application.

Purchase of Lot or Purchase of Residential Unit

  • Contract to Sell Purchase Agreement – original copy.

House Construction or Home Improvement

  • Building Plans, Specifications and Bill of Materials duly signed by the Licensed Civil Engineer or Architect
  • Real Estate Tax Receipt

Refinancing of an Existing Loan

  • Statement of Account on the outstanding balance and also indicating the purpose of the loan
  • Any of the following documents:
    • Official Receipt for the past twelve months
    • Subsidiary Ledger
    • Any proof of payment for the past twelve months

Lot Purchase and House Construction

  • Comply the requirements for lot purchase and for lot construction.

Note: Pag-IBIG Fund reserves the right to require additional requirements
to facilitate the loan evaluation process.

Documents required prior to Loan Release (upon approval)

  • TCT in the name of the borrower with proper mortgage annotation in favor of Pag-IBIG Fund (Owner’s Copy)
  • Certified true copy of TCT in the name of the borrower with proper mortgage annotation in favor of Pag-IBIG Fund (RD’s copy)
  • Photocopy of New Tax Declaration in the name of the Borrower and Updated Tax Receipt
  • Proof of Billing
  • Loan Mortgage Documents
    • Loan and Mortgage Agreement with original RD stamp
    • Notarized Promissory Note
    • Disclosure Statement on Loan Transaction
  • For The Employed Members : Collection Servicing Agreement with Authority to Deduct Loan Amortization or Post – Dated Checks
  • For The Self–Employed Members: Post–Dated Checks

Additional Documents Prior to Loan Release Depending on Loan Purpose

Purchase of Lot or Purchase of Residential Unit:

  • Deed of Absolute Sale with original RD stamp.

House Construction or Home Improvement:

  • Building, Electrical, and Sanitary Permits duly approved by the building officials
  • Occupancy Permit.

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Pag-IBIG Housing Loan Requirements is written by Niel Kyro Jo.

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