Pagibig Financing

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

Pag-IBIG Membership

Pag-IBIG Fund Membership Question and Answer

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Recently, we’ve been bombarded with questions about Pag-IBIG Fund Membership from our website visitors. These questions came from formerly active Pag-IBIG members, from Overseas Filipinos who wanted to join the program, and from people who were never sure if they were once members of the Pag-IBIG Fund or not. Well try to address each type here in the form of Question and Answer.

It is our hope that all future questions related to Pag-IBIG Fund membership will be put here in one place. So should you find something along this topic that were not yet addressed, please feel free to use the Contact Form or drop your questions from the comment box below on this page.

Please take note that many of the questions that were posted by the visitors have already been addressed in the previous articles. We’re not sure if they were just unable to find it or they don’t know how to use the Google Powered Search Box included at the bottom part of this website. So in this regard, some of our responses will make references on previous article where a particular topic is best explained.

Q-1: How can I become a member of the Pag-IBIG Fund?

There are basically two-type of membership to the Pag-IBIG Fund. One is mandatory and the other is voluntary.

For those who are locally employed in the Philippines, their respective employers should be able to assist them on their membership registration.

For voluntary membership, like the freelancers, self-employed professionals, and small business operators, please refer to the article about Voluntary Membership To Pag-IBIG Fund.

Note: OFW’s are now required to become members of the Pag-IBIG Fund. It used to be optional for them to become members of the Pag-IBIG.

Q-2: It’s been a long time since I left the Philippines to work overseas. I can’t remember anymore if I was a member of the Pag-IBIG Fund or not. How will I know?

Your case is quite understandable. Many Overseas Filipinos are also having that kind of problem, especially those who wanted to avail of a housing loan from Pag-IBIG for whatever reason they may have.

The best approach to this problem is to have a representative inquire it at the Pag-IBIG Branch where you used to be working here in the Philippines.

If, however, you are very sure that you have never been employed here in the country, there is a very good chance that you have never been a member of the Pag-IBIG Fund. In such as case, it is better to ask yourself if membership to the Pag-IBIG Fund is even necessary for you. Please be aware that there are other alternative housing loans available other than through Pag-IBIG Housing Loan.

Q-3: I remember I was contributing to the Pag-IBIG Fund when I was still employed in the Philippines. But since become and OFW, I stopped contributing. How can I re-activate my membership to the Pag-IBIG Fund?

The re-activation part is quite easy. All you have to do is continue paying your membership contributions!

But before you do that, it is best if you can proceed to the Pag-IBIG Office and request a copy of your past contributions.

Q-4: What is my Pag-IBIG ID Number?

Knowing your Pag-IBIG ID Number is one of the most important things you can do. IF you don’t have it yet, or for some reasons you forgot, please proceed to the Pag-IBIG Branch where your contributions are being remitted to and ask for a copy of your Pag-IBIG ID Number.

Pag-IBIG Financing Notes:

  1. This is an on-going discussion page for all queries related to Pag-IBIG Fund membership.
  2. If you have a question about Membership, and about membership to the Fund only, please use either the contact Form or the comment box below

So stay connected with us (we are on Facebook) for more Q and A about Pag-IBIG Fund Membership.

How To Check If You Are Qualified For A Pag-IBIG Housing Loan

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“Am I qualified for a Housing Loan?”

This is a recurring question which appears on this website as comments under different articles with different topics. This article is intended to address that question once and for all and also show you some useful tips.

You can actually personally determine if you are eligible for a housing loan based on the following:

  • Your Pag-IBIG Membership
  • Your Age
  • Your Capacity To Pay
  • Other Pag-IBIG Loans

We’ll try to elaborate each one on the succeeding paragraphs.

Your Pag-IBIG Membership Status

You need to remember the following basic requirements for Pag-IBIG Fund Members.

  • You must be an active Pag-IBIG member for at least 2 years and has contributed a minimum of 24 monthly contributions.
  • Both the principal borrowers are subject to the above mentioned requirement.
  • Up to three Pag-IBIG Members may avail of a single housing loan (same collateral) provided they are related within the second civil degree of consanguinity.

Question: Can I pay 24 months one-time and then avail of the Pag-IBIG Home loan immediately?

Answer: Not anymore, the new Pag-IBIG Law of 2009 has changed the rule. But, you may still pay 24-months one time (Pag-IBIG will be more than happy to accept it) and wait for another 24 months to apply. (Other branches will allow you to wait for just 12 months.)

Pag-IBIG Financing Tips on Membership:

For the complete list of document requirements, please check this article.

Your Age

  • You must not be more than 65 years old at the time of loan application.
  • You must not be more than 70 years old at the date of maturity.
  • You must be insurable.

Advanced age really is a hindrance to getting a housing loan. And take note that this is true whether you are using Pag-IBIG or any Bank.

Pag-IBIG Financing Tip: If you can afford it, apply for a housing at a young age.

Your Capacity To Pay

Pag-IBIG Housing Loan InterestAs a general rule, your monthly amortization should not exceed one-third of your gross income. This is the rule used by many financial institutions when qualifying a loan applicant.

But when it comes to Pag-IBIG Financing, your monthly amortization (principal + interest) should not be more than 40% of your Net Disposable Income.

Actually, there is a table that you can use to determine much loan amount you can get given your income, contributions and loan term. To see the Table, please refer to the article on “How Your Income And Contributions Affect Your Housing Loan Entitlement”.

Pag-IBIG Financing Tips:

  • Have your finances in order by saving enough for the Down Payment (or Equity).
  • You need to show some proof of income. Prepare the following documents: Pay Slips, Income Statements, Employment Contract (with indicated salary).
  • Learn about the 5’s of Credit
  • If your income is insufficient, you may take on a relative (within the second civil degree of consanguinity) or your spouse and tack-in your contributions then apply for a housing loan.

Other Pag-IBIG Loans

  • You are only allowed one Housing Loan at a time. If you want to take another one, you have to pay your existing loan.
  • If you have previously availed of the housing loan, make sure that it was not foreclosed, cancelled, bought back, or subjected to dacion en pago.
  • If you have an outstanding Multi-Purpose Loan, your payments must be updated and it must not be in arrears at the time of application.

It is important that you take note of the information presented here before you apply for a housing loan from Pag-IBIG.

And if you are disqualified for some reasons, please remember that Pag-IBIG is not the only Home Financing option available. Or, you may want to try applying again in the future. Your loan application may be approved by that time.

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“How To Check If You Are Qualified For A Pag-IBIG Housing Loan” is written by Carlos Velasco.

Why This Question Is Wrong: “Can I Pay The Whole 24 Months Contribution One-Time So That I Can Avail of the Housing Loan?”

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Yes, that’s a wrong question and later I will explain why.

The main purpose of this article is simply to tell you not to ask that question from now on, because it’s a wrong question. Enough of that question. Period.

The Right Answer To The Wrong Question

We have received that kind of question several times and the answer has already been put at the FAQ Page of this website. You can go visit that page if you don’t want to read a lengthy explanation.

But since you are already here, heck, let’s answer that.

Maybe someone already told you that you can pay the whole 24 months upon membership and right there and then apply for a housing loan. That used to be possible. But the management of Pag-IBIG Fund found out that it’s been abused many times with some members doing it just for the sake of getting a loan.
And so they fixed the loophole. A new rule was implemented and it is not anymore allowed do it. In other words, if you are a new Pag-IBIG Member, you really have to be actively contributing for a period of 24 months before you can begin applying for a housing loan.

So Why Is It A Wrong Question?

The very question itself shows that the person asking is in desperate need of a loan. Unfortunately, just because you are desperate need of a loan doesn’t mean you will get the money. As a matter of fact, the odds are against you if you display such a behavior.

It’s a wrong question because:

  1. Pag-IBIG Fund Doesn’t Care If You Need A Loan.
  2. Pag-IBIG Fund Doesn’t Know You Yet.
  3. Pag-IBIG Fund Can’t Tell If You Have The Means To Pay For The Loan.

Okay, let’s tackle it one by one.

Reason #1: Pag-IBIG Fund Doesn’t Care If You Need A Loan.

One of the erroneous notions Pag-IBIG Members have is thinking that they are entitled to a loan. Unfornately, no. Just because you are a member of the Pag-IBIG Fund doesn’t mean you can apply for a loan any time and get the proceeds too.

Reason #2: Pag-IBIG Fund Doesn’t Know You Yet.

Most people who are asking such question are either not yet members or new Pag-IBIG Members. That means, these people have no proven records yet at Pag-IBIG. They are like strangers asking for a loan. They could be here now and gone the next day, who knows?

As a member, it is to your advantage if you maintain a clean, active and impressive record with Pag-IBIG Fund before you even attempt to apply for a loan. See to it that your records are updated and your contributions are up-to-date.

Reason #3: Pag-IBIG Fund Can’t Tell If You Have The Means To Pay For The Loan

Think about it. When you get loan, you are most likely to benefit from it and Pag-IBIG is taking a risk in granting you the loan. So to lessen the chances of making a mistake in granting the loan, and therefore losing money, Pag-IBIG has to make sure that they are giving it to the right guy — the one who has the means of paying the loan.

One of the ways Pag-IBIG checks for you are capable of paying the loan is by checking on your employment records such as employment history, contract of employment, salary, etc. So, before applying for a loan, see to it that your finances are in the right order.

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This article is written by Carlos Velasco to help Pag-IBIG Fund Members understand the importance of the 24-month period of active membership to the Fund. The question is also among the most asked by the website visitors and with this article we at PagIBIGFinancing.com hope to make things clear for all Pag-IBIG Members.

The Pag-IBIG Overseas Program

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For many Filipinos, times seem so hard these days in their homeland. That is why more and more Pinoys try their luck abroad, where the grass is perceived to be greener. They work in foreign lands that promise them the financial freedom that their native country cannot seem to give them.

For those who are lucky enough to return to their native land with sufficient money they have accumulated abroad, the first sound investment that would come to mind is an investment in real property. Home ownership is in every responsible Filipino’s wish list.

Overseas Investment

But waiting for a good sum of money to pay Spot Cash for a property in the Philippines is not only a good idea, but would also take a long time for most Overseas Filipinos. After all, there are other expenses, family remittances and obligations to take care of also.

Wouldn’t it be nice if they can start building their home in the Philippines while they are building their nest of cash overseas? In other words, building a house in the Philippines, without requiring too much upfront cash and pay for it in installments (mortgage amortizations).

Enter: The Pag-IBIG Overseas Program

To help the Overseas Filipino Workers, along with immigrants and naturalized citizens realize their dream home, the Pag–IBIG Overseas Program (POP) was created.

The Pag–IBIG Overseas Program is a voluntary Savings Program, wherein members are given a chance to set aside money for their future housing investments. With the program, members may avail of a housing loan of as much as Php 3,000,000 (at the time of this writing).

The Pag-IBIG Overseas Program is open to the following:

  1. All Overseas Filipino Workers (OFWs) with valid Visas or Employment Contracts
  2. Filipino immigrants and naturalized citizens

Money Talk – Member Contributions

Members of the program are to contribute monthly an amount equal to $US 5, at a minimum.

An upgraded membership is required for members, who would like to avail of a higher loan amount.For instance, if a member wishes to avail of a housing loan ranging from P1,500,000 to P1,600,000, he or she will have to contribute monthly an amount equal to the US dollar equivalent of PhP 750 at the point of availing the loan.

The upgraded membership contribution will form part of the housing loan monthly amortization.

POP As Savings / Investment

The Pag–IBIG Overseas Program not only serves as the OFW’s aid in fulfilling his dreams of owing a home. It also serves as a savings investment in the mutual fund company, that promises positive gains on the investment money. Note: The Pag-IBIG is a government controlled Mutual Fund corporation.

As a Pag – IBIG Overseas Program member, one is entitled to variable dividends from the excess earnings of the Fund. These dividends are distributed annually to the members and are credited to their Total Accumulated Values (TAV).

Members of the program have the option to withdraw their accumulated savings at the end of five (5), ten (10), fifteen (15), or twenty (20) years upon membership.

Foreign denomination contributions shall be converted to the Philippine Peso based on the prevailing US dollar exchange rate. As such, withdrawals of savings shall be made in Philippine Peso.

Member Benefits

Members of the Pag-IBIG Overseas programs are illegible to the following benefits:

  1. Housing Loan
  2. Multi-Purpose Loan
  3. Dividends

It is good to know that the Pag–IBIG Overseas Program is there to reward the efforts of OFWs through an effective savings and home financing scheme. Somehow, through POP, the OFW’s return to their native land will grant them the freedom that was somewhat denied them in the first place.

Indeed, perhaps one’s best investment in life is one’s own home. It reflects one’s status and achievement in life. This is especially true for Overseas Filipino Workers, who take chances and make sacrifices abroad for their future and that of their families.

Related Links

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The Pag-IBIG Overseas Program is written by Kyro Jo.

Voluntary Membership To Pag-IBIG Fund: The Self-Employed, Freelancers, And Non-Employees

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Self – employed? Unemployed? How about Non-Employed? In other words, are you not connected with a single company that considers you on its monthly payroll?

The good news is, you can become a member of the Pag-IBIG Fund as a Voluntary contributor.

The bad news is you have to shoulder of the contributions yourself without the aid of a company or employer. But if you are self-employed or you are on a business by yourself, you already know that you are in control of your financial direction, right?

In this article, we’ll show you how to become a member of the Pag-IBIG Fund as a Voluntary Member.

How To Join Pag-IBIG As A Voluntary Member

  1. Accomplish and submit two (2) copies of the MDF and all required supporting documents to the Marketing and Enforcement Division of the concerned Pag-IBIG branch office (bring all originals for authentication).
  2. Secure a Payment Order Form (POF) from the Marketing and Enforcement Division, and then proceed to the Cash Division for payment of initial Membership Contributions (MC).
  3. Present all verified/stamped documents to the Marketing and Enforcement Division.
  4. Secure a Payment Order Form before proceeding to Cash Division for payment of contribution.

Requirements For Individual Payers

Here are the respective requirements for different categories of Individual Voluntary Members. Please check with group you belong.

1. Self-Paying Empployee (Waived Company)

You may be employed by one or more companies, but for some reasons, you choose to pay your Pag-IBIG contributions by yourself without their aid.

  • Certificate of Employment & Compensation
  • Latest Pay Slip
  • Company ID

2. Self – Employed

Freelancers, professionals, consultants and owners of small businesses belong to this category. (See also item #5.)

  • Latest Income Tax Return (ITR) with Financial Statement of the previous year certified by a CPA
  • Certificate of Remittance/ESAV (for old members)
  • Two 1×1 ID pictures
  • SEC or DTI Registration (should be under the member’s name)
  • Business Permit or Mayor’s Permit

3. Franchise Holders or Operators

  • Franchise Permit (under the member’s name)
  • Official Receipt or Car Registration (under member’s name)
  • Latest ITR (previous year)
  • Two 1×1 ID pictures
  • Certificate of Remittance or ESAV

4. Overseas Filipino Workers (reactivating members)

  • Latest Contract of Employment
  • Passport or any valid ID / POEA License
  • Latest and valid Contract of Employment (with POEA original stamp)
  • Certificate of Remittance or ESAV
  • Two 1×1 ID pictures
  • Special Power of Attorney (SPA), in case a representative shall submit the documents and pay the member’s contributions

5. Self – Employed Professionals

These are government licensed professionals practising their expertise.

  • PRC / BAR License
  • Latest ITR (previous year)
  • Certificate of Remittance or ESAV (for old members)
  • Two 1×1 ID pictures

6. Unemployed Spouse

Yes, if you are unemployed you may still qualify provided your spouse is employed and a Pag-IBIG member.

  • Written consent from member-working spouse
  • Certificate of Employment and Compensation of member-working spouse
  • Affidavit of Unemployment

7. Member – Spouse with Business

This is similar to #6 above, but the spouse is in business.

  • Latest ITR
  • Written consent from member-employed/working spouse
  • Certificate of Employment and Compensation of member-working spouse (notarized)
  • Affidavit of Unemployment
  • Two 1×1 ID pictures
  • ITR (previous year)
  • Business Permit or Mayor’s Permit
  • SEC or DTI Registration

Important Notes:

  • Monthly contributions of unemployed members (reactivating or non-working spouse) shall be P100.00.
  • The unemployed member has the option to upgrade his monthly contributions, but may not downgrade the amount.
  • Unemployed members may avail of the Multi-Purpose Loan, but not a housing loan from Pag-IBIG.
  • Individual payers or voluntary members have the option to choose their terms of payment, e.g. monthly, bi-monthly, quarterly, etc.

8. Unemployed (reactivating member)

Well, let’s admit it, times are tough. One day, your employment may just be gone in a flash. You may still continue your contributions provided you provide:

  • Affidavit of Unemployment

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This article on Voluntary Membership To Pag-IBIG is written by Kyro Jo.

For Employees : How To Become a Pag-IBIG Fund Member?

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Are you a regular employee who always wonder how that Pag-IBIG deduction got in to your pay slip? Or you don’t really care since it is as normal and as inescapable as the income tax?

This article shows you how to become a member of the Pag-IBIG Fund if you are an employee here in the Philippines.

Pag-IBIG Membership For Employees

Earning at least P 4,000 a month? Thanks to Republic Act 7742, membership to the Pag-IBIG Fund has become mandatory for all employees covered by the Social Security System (SSS).

That’s right, all you have to show is you are earning a minimum of PhP 4,000 and you are working in a legitimate company, then you can be a member of the Pag-IBIG Fund.

As for employees earning less than P 4,000 a month, membership to the Pag-IBIG Fund is only voluntary.

So How Do You Exactly Become A Member Of Pag-IBIG Fund?

In most cases, you don’t even have to bother about it since your employer will file your membership to the Pag-IBIG Fund and remit your contributions on your behalf.

In a perfect world, everything is taken care of. In reality, that’s not always the case.

If your company won’t even bother, you can always be in control take the necessary steps yourself. This is especially true if you are considering getting a housing loan anytime soon. You want to show them that you have “perfect contributions” and is ready to take a loan.

Here are some guidelines:

  1. Locate the Pag-IBIG branch that is nearest to your place of work. Usually, this is the regional office of Pag-IBIG Fund.
  2. Proceed to the Marketing and Enforcement Division of the concerned branch.
  3. Request for a copy of the Membership Registration/Remittance Form (MRRF).
  4. Accomplish and submit two copies of the MRRF together with the following supporting documents to the Marketing and Enforcement Division:
    • Members’ Data Form (MDF)
    • Certificate of SSS Coverage and Compliance (for the current year), if private employer
    • GSIS Certificate of Membership, if government employer

Pag-IBIG For Employers

Yes, local employers are taking part in contributing to “your membership.” That’s why some of them (the small businesses, especially) feel a little bit itchy when complying to this mandate.

A problem arises when your company is not even a member of Pag-IBIG. (And this is not uncommon for very small business outfits.) In that case, here are some guidelines for employers.

  1. Accomplish two copies of the Membership Registration/Remittance Form (M1-1).
  2. Prepare the following documents (2 photocopies):
    • SEC registration or the company’s DTI and SSS registration
    • R3 and R1A forms (SSS registration and remittance forms)
  3. Present all documents (M1-1, Registration and SSS forms) to the Marketing Division of the concerned Pag-IBIG branch office for verification (bring all originals for authentication). Secure a referral slip from the Marketing staff.
  4. Proceed to the office’s Cash Division for payment of the first monthly remittance.
  5. Submit the referral slip prepared by the Marketing staff and all verified documents to the cashier.
  6. Succeeding remittance dates shall depend on the schedule of payment of the office. Accomplished M1-1 shall serve as the remittance form for succeeding payments.
  7. Submit to the Marketing office two copies of the accomplished Member’s Data Forms (MDF) of all qualified employees to the Marketing Division on the second month after the first payment of contributions.

The names of newly-hired employees, who are covered by RA 7742, should be included in the accomplished M1-1 form and their corresponding contributions duly remitted to the Fund. The accomplished MDF of the new employees shall be submitted on the following month.

For Sole Proprietorship

  • DTI Registration
  • Mayor’s Permit/ Business Permit

For Partnership/Corporation

  • SEC Registration
  • Articles of Partnership/Incorporation and By-laws

Important Notes:

  1. The original copy of the documents shall be presented for authentication.
  2. Upon submission of complete documents, the Marketing and Enforcement Division shall issue the Payment Order Form
  3. Proceed to the Cash and Administrative Services Division and pay the 1st monthly membership contributions (MC).
  4. Upon payment, present the Pag-IBIG Fund Receipt (PFR) to the Marketing and Enforcement Division.

Summary of Pag-IBIG Fund Membership For Employees

Once you have verified your membership to the Pag-IBIG Fund, your employer should be able remit your monthly contributions (which is deducted from your salary) to the Fund since your employer also acts as a collection agent of the Fund.