Requirements

Email Exchange : Buying Preparation, Unpaid Amortization, Membership Reactivation, etc

Topic #1 : What You Should Know Before You Buy A Real Property

Subject: Preparation on Home Purchase

I have been a Pagibig member and was contributing voluntarily while I was in Philippines. I woulld like now to prepare myself in buying a home there. I have no relatives that I can send in your office. I also dont know my pagibig number and how much contributions I have made. Is there a number in Pagibig Cebu City office that I can call and an email address that I can send documents and follow up. Thanks

Here are some good links for you to consider.

Home Buying Questions

Topic #2 : What Happens If You Don’t Pay Your Amortization?

Subject: Payment information

Hi! good day, I just wanted to know from your good office if it is possible that the housing loan is not paid for 1year or more will the pagibig will not forclose the property?

The grace period for any missed payment is only 30 days. If you are unable to pay for 3 months, the property is already subject for foreclosure, but it could take a long time for them to disposed of it. You are still given a chance to redeem the unit or restructure your loan.

If you are in that situation already, please read the article on Home Loan Restructuring to save your property. Here’s a link:

Home Restructuring Program

Please visit the branch handling your mortgage loan.

Topic #3: OFW Checking Membership Status

Subject: Inquiry

I was a member of PAG-IBIG I for almost 10yrs in the Philippines but I stopped my contributions when I resigned teaching. After 2 years, I became an OFW in US but before I left I paid a certain amount in POEA because they required us to pay as our contribution. When I asked the guy (PAG_IBIG representative) he told me that my payment goes to my old PAG-IBIG contributions(that was Feb. 2011).Now I want to apply a housing loan in the Phiulippines but i don’t know the status of my membership. Could you please explain my status and how could I avail housing loan?Do you have active office that I can visit or call in America most specially in California.

Please contact me using my email address.

You need to check it at the branch which keeps your records. If you are already out of the country, you may want to send in a representative to process it on your behalf.

Since you wanted to apply for a housing loan, it helps if have an idea of the process. Please read this article:

Pag-IBIG Housing Loan Process

As for the overseas office, please refer to this link:

Pag-IBIG Directory

I hope this helps.

Topic #4: Where To Pay For Housing Loan Dues

Subject: inquiry on where to pay

good day! i applied for pag-ibig online and have received my number. but i don’t know where to pay or what requirements i still need to present to pay.can you please give me detail? thank you very much. by the way i am a licensed physician woring as a moonlighter/freelance on voluntary payment. thank you

Here are some of the ways you can pay the Pag-IBIG Fund:

How To Pay The Pag-IBIG Fund

The best one is still to do it over the counter at the branch where your records are kept.

Housing Loan Preparation: How To Flex Your Financial Muscle

by Pag-IBIG Financing Admin

“Get your finances in order.”

You have probably read that statement several times on different pages of this website. Usually, it is the response we give to visitors who are asking for guidance on how to get, and eventually be approved for, a housing loan from the Pag-IBIG Fund.

The phrase is very brief but it means a lot of things, which I will attempt to elaborate here in details.
Essentially, I’ll be talking financial talks that relate to the following topics:

Employment or Business Track Record
Level of Income
Credit History

That’s it — just these three things are enough to help you flex your financial muscles so that you’ll be ready to face your loan officer. If you get them right, you’ll be smiling for making such a preparation. And take note, the same concept is applicable also to any loan application from any financial institution like the bank and credit cooperative.

Okay, let’s take them one by one.

Employment or Business Track Record

Quite simply, this is revealed by such question as, “How long have you been in business or in your current work or profession?”

The answer to this question is very important to the lending institution because it tells something about the stability of your income.

There are many ways a private lending institution can get a handle of this information. Depending on your source of income, some banks will be asking you the following:

Your contract of employment — with stated terms of contract and salary
Remittances in the Philippines (For OFW)
Bank Statements
Financial Statements for the past 2 years (for businesses)

Pag-IBIG Housing Loan Preparation Checklist In the case of Pag-IBIG Fund, one of the ways they can check this is by simply looking at your membership records with the Fund. Ever wonder why the Pag-IBIG Fund requires its members to have contributed at least 24 months of contributions? The very reason is that, they want to make sure that you have a steady source of income for the past two years. Somehow that gives them a hint of your employment record.

So the next time you are thinking about getting a loan, remember to take more time to reflect first on your employment, professional or business history. Stability in your work or line of business is the key. The longer you are in your work, profession or business, the more chances you have to being qualified for the Pag-IBIG Housing loan.

Pag-IBIG Financing Tip #1: Learn about Loan Pre-Qualification and its importance.

Level of Income

This one is very obvious. The higher your income level, the better chances of getting qualified for a housing loan, and the higher the loan amount entitlement also.

Question: If my income is P 35k per month, am I qualified for a housing loan with Pag-IBIG amounting to P 1.5 M?

Answer: Yes, but you should probably try to settle on a lesser amount of loan or strive to come up with an augmented income. Remember, your monthly amortization will also take a toll on your family’s budget. You don’t want to tie up a bulk of your expenses just paying of your home loan.

The answer to the question above is based on Pag-IBIG Fund’s Guidelines relating the income and member’s contributions to this loan amount entitlement. For more details, please check on the article entitled “How Your Income And Contributions Affect Your Housing Loan Entitlement“.

Pag-IBIG Financing Tip #2: As a general rule, you are safe if you select a loan amount and term where the resulting monthly amortization is less than 1/3 of your net monthly income.

Credit History

A borrower’s bad credit history really turns off any lending institution. Be careful about having a history of cancelled credit card because it will haunt you down once you apply for a loan from any bank in the country.

The current Housing Loan Application Form of Pag-IBIG already includes fields about the loan applicant’s credit cards. But some borrowers who have a bad credit history can simply skip on those blank items so that the Pag-IBIG staff won’t bother. But someday soon, it will become a critical part of the housing loan qualification process.

Essentially, what this means to all Pag-IBIG Fund members who want to apply for a housing loan is that, they should not make any Pag-IBIG Loan they can’t make up. Any unpaid loan you have made with Pag-IBIG can definitely affect any loan application you will make with the Fund.

Pag-IBIG Financing Tip #3: Don’t be careless even on small amount of loans. It can make or break your reputation with the Pag-IBIG Fund.

More on Pag-IBIG Multi-Purpose Loan

by Pag-IBIG Financing Admin

This short article is intended to supplement the original article on Pag-IBIG Multi-Purpose Loan (MPL).

We will present the information in a Question-And-Answer Format so that it will be easier for you to find those topics that are relevant to your situation.

It is worth noting that a lot of the questions we received regarding the MPL Loan has already been addressed in the aforementioned article.

In many of our articles, there are instances when we don’t answer some questions. Our apologies. But that’s because the answer has already been very obvious in the article — if only the reader spent a few more minutes reading the entire article and understanding it thoroughly.

So maybe if you want to ask something that’s related to Pag-IBIG Multi-Purpose Loan, please consult that article first and make sure that you read it in its entirety.

(The New Philippine Peso Bills Design Series of 2010 is shown below. Source: The Bangko Sentral Ng Pilipinas.)

1. Who can avail of the Pag-IBIG Multi-Purpose Loan?

The Pag-IBIG Multi-Purpose Loan is open only to Pag-IBIG Fund Members who meet the following basic qualifications:

Active or currently contributing to the Fund at the time of loan application.
Has made at least of 24 months contributions.

2. What is the maximum loan amount I can get from MPL?

The maximum amount is 80% of the TAV.

Are you also interested in knowing the minimum amount?

That’s easy. The minimum is 60% of the TAV.

Note again that this is a recurring question which has been addressed in the previous article. In case you are wondering what on earth is TAV or you want to get a detailed answer to this question, please read the first article on Pag-IBIG Multi-Purpose Loan.

3. What is the interest rate and term of this loan type?

The MPL interest rate is only 10.75% per annum and the loan is payable in 24 months.

4. How do I get the loan proceeds?

Once the loan has been approved, you may get the loan proceeds from the office where you made the application or it will be mailed to you. The whole approved amount may be released through:

Check – Payable to the borrower’s name.
LandBank’s Payroll Credit System Validation
Philippine Domestic Dollar Transfer System

5. Can I avail of the MPL even if I still have an outstanding Housing Loan?

Considering that Pag-IBIG Housing loan is usually a long term one, that’s possible.

However, take note of the following:

The loan should not be more than 9 months in arrears.
The account is not yet cancelled.
The property is not yet foreclosed.

In case your housing loan is already over 9 months in arrears, you may still be allowed to avail of the Multi-Purpose Loan if the account has not yet been cancelled or foreclosed and the proceeds of the loan shall be used to cover the arrearages (missed payments).

6. Can I use the Multi-Purpose Loan for Home Improvement?

Yes. As a matter of fact, it is preferable to the usual Housing Loan for use in Home Improvement in the sense that there are less documents required from you. The regular Home Improvement Loan is quite complicated with lots of required technical documents like House Design, Floor Plan, Project Costing, etc.

The only other thing to consider when you want this option is that, you can’t expect to get a large amount for your loan. But for many Pag-IBIG members, that amount is already enough to cover the expenses on renovation and improvements of the house.

Actually, you can use the proceeds of the loan in various ways. It’s all up to you.

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More On Pag-IBIG Multi-Purpose Loan is written by Carlos Velasco.

How Your Income And Contributions Affect Your Housing Loan Entitlement

by Pag-IBIG Financing Admin

In case you are wondering how much loan amount you are entitled, this article intends to address that.

By now, you should already know that the maximum housing loan amount Pag-IBIG can possibly grant to a member is P 3,000,000 while the smallest amount is only P 100,000. And the corresponding interest rate is actually shown at the Right Panel of this website.

Basically, there are two very important factors that affect the loan amount you will be entitled to:

The amount of your contribution
Your Net Disposable Income

Naturally, if you want to avail of a bigger loan amount, you need to increase your contribution and demonstrate that your Net Income is also large enough to cover the monthly amortizations.

These things are easier to understand with the following Tables.

Loan Entitlement Based On Pag-IBIG Contribution

So looking at the table, if you need, for example, to get a loan amounting to P 2,000,000 your contribution should be P 950 / month. Now PhP 950 /month is easier for most Pag-IBIG Members. Quite frankly, there is no problem in that area.

Special Note to OFWs / POP Members: Since you are contributing in US Dollars, the table essentially means to need to contribute the US Dollar equivalent of that amount in Philippine Peso. As you know, there is a constant swinging of values between these two different currencies so there is also a corresponding adjustment.

Loan Entitlement Based On The Capacity To Pay

Take note of this part and this is very important.

According to the Pag-IBIG Fund Primer on Housing Loan, “A member’s loan entitlement shall be limited to an amount for which the monthly repayment on principal and interest shall not exceed 40% of the member’s net disposable income…”

In other words, the monthly amortization should be less than 40% of your net disposable income.

The following Table should guide you.

For example, if you are looking to get a PhP 1,000,000 loan and plan to pay it in 10 years (monthly amortization is P 12, 398.57 at 8.5% interest per annum), your net disposable income should be PhP 30,996.43 or higher (the higher the better).

So to avoid having problems paying for the property, that means you have to work backwards: Determine your net disposable income first, then buy a property based on the amount of loan that you can comfortably pay.

Let’s see if you really understand the Table shown above.

Question: You are planning to get a Pag-IBIG Housing Loan amounting to P 2,000,000 and pay it in 10 years. How much should your monthly income be?

Answer: Your monthly income should be P 67,467.50 or higher. And your monthly contribution should be P 950.

Additional Notes on Borrower’s Eligibility For Housing Loan

To be eligible for the housing loan, a member should:

Be a member for at least 24 months and has remitted at least 24 monthly contributions.
Be 65 years old or younger at the time of loan application.
Not be more than 70 years old at the maturity date of the loan.
Have no outstanding housing loan from Pag-IBIG.
Have no Multi-Purpose Loan in arrears at the time of housing loan application.
Have no Pag-IBIG Housing Loan that was foreclosed, cancelled, bough back or subjected to dacion en pago.

Related Articles To Check:

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This article on Income, Contributions and Loan Entitlement is written by Carlos Velasco.

5 Great Tips For The First Time Pag-IBIG Home Buyers

by Pag-IBIG Financing Admin

This article is intended for the first-time home buyer who wanted to buy a house using Pag-IBIG Financing.

Maybe you are still single and you already wanted to get a house before getting married. (Well, this was the route that I followed.) Or, maybe you are newly wed and you decided that you want to live separately from your parents. Believe me, there’s no substitute to the feeling that you are living on your own home.

A Pag-IBIG starter home — your first home — may not be the most impressive home in town. That’s okay. Forget about the Joneses. Like your puppy love, don’t ever think that it will become your dream home. Rather, treat it as a nest egg that allows you to slowly build your investment (hedge against inflation) while literally having a roof over your head.

Buying your first home through Pag-IBIG is so easy if you take note of the following tips offered here.

Tip #1: Work With Your Real Estate Professional
By real estate professional, in this context, I’m referring to the real estate broker or agent who is directly selling the house.

House From The Up Movie -- A Nice Starter Home You may think that getting the assistance of a real estate agent will make the property more expensive. Whoever told you that must be very ignorant of the whole process.

Here’s what you should know: The real estate professional can’t change the selling price of the property that is owned by the Developer. That is, they can’t markup the price nor can they offer a discount. The selling price and discounts are completely dictated by the Developer’s Marketing Team and the agent can never, ever change that price.

Using a real estate professional right from the start saves you from a lot of headaches associated with the home purchase. For one, the guy is a good source of information such as the following:

The project
The property
The financing schemes
Special promotions and discounts
The materials used,
The move-in process

And if you are using Pag-IBIG Financing, your real estate agent should be able to help you cut through the bureaucracy in the Office.

Tip #2 : Buy A New House

Avoid foreclosure properties or properties that are for assume. Most of these properties are inherently problematic. You don’t want to find yourself catching someone else’s problem, do you?

Many foreclosed properties are so cheap you are tempted to jump on the deal immediately. Not so fast. This may be one of those cases where cheap could actually turn out to be very expensive due to probable renovations. If renovations are needed, we can point you towards reputable contractors like Art Construction.

As much as possible, make sure you are the first owner. Of course, as time goes, newer homes will become harder to find. If that’s the case, make sure that the Land Title is clean.

Tip #3 : Buy From A Legitimate Real Estate Developer

Never, ever deal with a fly-by-night real estate developer. But the crooks have a way of putting on the mask in such a way that you can’t detect the devil’s intentions. Here’s where common sense becomes a useful tool at your disposal.

At the very least, a legitimate Real Estate Developer:

Has complete Business Permits and Licenses to operate in that line of business.
Issues an Official Receipt from the Bureau of Internal Revenue.

Some good points to keep in mind:

Check the track record of the Developer – especially its past projects.
Make sure they are accredited by the Pag-IBIG Fund. (only if you intend to use Pag-IBIG Loan)
Check the License To Sell and Development Permit – they should have both.

Tip #4 : Make Sure You Have Your Finances In Order

Here’s a handy checklist:

You are currently an active Pag-IBIG member with at least 24 months contributions
Your employment history is impressive
You have enough salary/income to cover the monthly amortization

Tip #5 : Save Enough For The Down Payment

The greatest hurdle most real estates buyer ever faced is coming up with the down payment. Many are surprised when they find they don’t have enough cash to cover the outright cash payment required of them.

The down payment, sometimes called equity, is usually 10% to 30% of the selling price. And almost always, it is to be paid one-time about one month after placing the Reservation Fee. So one of the first problems you should think about is the amount of cash you need to raise for the down payment.

Down Payment Tip: Ask your real estate agent if you can defer the payment of the down payment to, say, 12 months. This should be easier on your pocket.

“5 Great Tips For The First Time Pag-IBIG Home Buyers” is written by Carlos Velasco.

The Pag-IBIG Housing Loan Process

by Pag-IBIG Financing Admin

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:

Preliminary Counselling Questionnaire – Some basic questions that are easy to answer.
Membership Status Verification Slip (MSVS) – This will be used by the assigned staff to check your records and contributions to the Pag-IBIG Fund.
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.