How To Apply for Pag-Ibig Housing Loan: A SIMPLIFIED Ultimate Guide

Here is a clearer and easier-to-follow step-by-step instructions for understanding the Pag-Ibig housing loan and its application process:

Introduction

Many Filipino families dream of having their own house.
However, a significant number of Filipinos struggle to turn this dream into a reality.
The 2020 Annual Poverty Indicator Survey of the Philippine Statistics Office revealed that only 59.8% of families in the Philippines own a house and lot.

The Pag IBIG Housing Loan

The Pag IBIG Fund, also known as the Home Development Mutual Fund (HDMF), was established to address the housing needs of Filipino workers.
It serves as a national savings program and provides affordable housing financing.
Pag IBIG is a government agency that not only offers housing loans but also provides higher interest rates on savings compared to most banks.
Pag IBIG savings can serve as collateral for various loans, including housing, calamity, and multi-purpose loans.

Filipinos typically consider two options for housing loans: Pag IBIG Fund and banks.
Each option has its pros and cons, and the final decision should be based on personal criteria.
Factors to consider include qualifications, loanable amount, interest rate, loan term, and miscellaneous fees.

Pag IBIG Housing Loan vs. Bank Housing Loan

Qualifications

Pag IBIG housing loans are available only to Pag IBIG members, while banks usually require proof of income or employment.
Minimum wage earners have a higher chance of approval with Pag IBIG’s Affordable Housing Loan Program.

Loanable Amount

Pag IBIG offers housing loans up to ₱580,000 for socialized housing and up to ₱750,000 for socialized condominium units.
Regular applicants with above-average income can borrow up to ₱6 million.
Banks typically have a minimum loanable amount of ₱300,000, with the final amount depending on the provider’s criteria.

Interest Rate

Pag IBIG housing loans have lower interest rates, starting from 3% for low-income earners and 5.75% for regular borrowers in a 1-year fixed pricing period.
Banks offer housing loans with interest rates ranging from 5.25% to 6.75% for the first year.
Pag IBIG’s interest rate is capped at 2% per annum by law, while banks have no specific ceiling.

Loan Term

Pag IBIG allows borrowers to choose a loan term of up to 30 years.
Banks offer loan terms ranging from 20 to 25 years, depending on the purpose of the loan.

Pag IBIG guarantees minimal fees, including a ₱1,000 processing fee and a ₱2,000 fee before loan release.
Banks may charge additional fees such as appraisal fees, handling fees, notarial fees, doc stamps tax, and registration fees.

Benefits of Pag IBIG Membership

Pag IBIG members can keep their contributions in a savings account.
Even if not availing of a housing loan, the savings can earn dividends over time.
The money remains in the account until the end of the 20-year membership period.

Pag IBIG Housing Loan Requirements

Upon Loan Application:

Pay a ₱1,000 processing fee and a ₱2,000 appraisal fee.
Fill out the Housing Loan Application Form and attach a recent ID photo.
Provide proof of income, depending on employment status.
Submit a photocopy of a valid ID.
Prepare necessary documents like the Transfer Certificate of Title, Tax Declaration, and Real Estate Tax Receipt.
Include additional requirements if applicable,

How To Apply for Pag IBIG Housing Loan: A 7-Step Guide to Getting Approved

Step 1: Check your eligibility

Make sure you are an active Pag IBIG Fund member with at least 24 months of contributions.
If you are a new member, you can complete the required contributions through lump-sum payments.
Ensure that you meet the age requirements: not more than 65 years old at the time of application and not more than 70 years old at loan maturity.
You should have a legal capacity to acquire and encumber real property.
Pass the background checks conducted by the Pag IBIG Fund.
You should not have any previous Pag IBIG housing loans that ended up with foreclosure, default, cancellation, or surrender.
If you have an existing Pag IBIG housing loan or Short Term Loan, make sure your payments are updated.

Step 2: Determine your purpose for the loan

The Pag IBIG housing loan can be used for various purposes, including buying a lot, house and lot, or condominium unit, building or renovating a residential unit, refinancing an existing loan, or acquiring Pag-IBIG acquired assets.
Different loan combinations are available depending on your needs.

Step 3: Choose the loan program that matches your income level

Pag IBIG offers different loan programs based on your capacity to pay.
The Affordable Housing Loan Program is for low-income earners, while the Regular Housing Loan Program is for applicants with above-average gross monthly income.
There is also the Pag-IBIG Home Equity Appreciation Loan (HEAL) for members with good payment records, and the Pag-IBIG Acquired Assets Program for purchasing foreclosed properties.

Step 4: Gather and complete the necessary requirements

Step 5: Submit the requirements to Pag IBIG

You can submit your application online through the Virtual Pag-IBIG portal or apply in person at the nearest Pag IBIG branch.
Follow the instructions and provide the necessary information.
If applying online, you will receive a reference number and appointment schedule.
If applying in person, submit the application form and requirements, pay the processing and appraisal fees, and receive the Housing Loan Application Acknowledgement Receipt.

Step 6: Wait for the loan approval

Pag IBIG will notify you about the status of your application within 17 days.
If approved, you will receive a Notice of Approval (NOA) and Letter of Guaranty (LOG).
Arrange a visit to the Pag IBIG office to sign the loan documents.
Fulfill any additional requirements specified in the NOA.

Step 7: Complete the NOA requirements for check release

Follow the provided checklist based on the purpose of your loan.
This may involve payments, transfers, and submission of documents to different agencies.
Make sure to complete the requirements within 90 days to receive the loan check.

By following these steps, you can apply for a Pag IBIG Housing Loan successfully.

Top Posts & Pages