About Pag-Ibig Housing Loan Program

About Pag ibig Housing Loan Program
Pag ibig housing loan program is the best and No. 1 benefit  of Pag ibig.  This program has helped many Filipinos here and abroad realized their dream of buying a home for their family.

What is the Pag ibig Housing Loan Program?

This program aims to help Pag ibig members acquire a house and lot or lot only with lower interest rates compared to Bank Financing Loans.

What are the Two (2) Ways of Applying a Housing Loan?

There are two (2) ways of applying for a Pag-IBIG housing loan:

1. Developer-Assisted – House Developer assists the member in his/her housing loan application.  This refers to housing projects offered for sale by Developers that requires a downpayment or equity.
2. Retail – the member applies directly to Pag ibig Fund and process the loan by himself. He will transact directly with Pag ibig Fund office.  No Developer is involved in this transaction.

What are the Guidelines of Pag ibig Housing Loan Program

Presently, these are the 2 guidelines that Developer or Individual Applicant refer to when applying for a housing loan.

1.  Pag ibig Circular No. 310 – Amended Guidelines on the Pag ibig Fund end-User Home Financing Program

These guidelines apply to housing loan with loan value up to Php 6,000,000.00

This is applicable for houses bought from a Developer (Developer-assisted loan) or if house is bought from other sources and you will directly or personally apply the loan with Pag ibig.

2.  Pag ibig Circular No. 312 – Guidelines on the Pag ibig Fund Affordable Housing Program

These guidelines apply to housing loan with loan value up to Php 750,000.00 only

This is also applicable for houses bought from a Developer (Developer-assisted loan) or if house is bought from other sources (not Developer) and you want to directly or personally apply the loan with Pag ibig.  With maximum loan amount is Php750,000.00

For better understanding, please read more:

Pag ibig Circular No. 310 – http://www.pagibigfund.gov.ph/

Pag ibig Circular No. 312 –http://www.pagibigfund.gov.ph/

What Are The Loan Purposes?

Circular No. 312 – For Affordable Housing up to Php 750,000.00 Maximum Amount:

The Pag-IBIG housing loan may be used to finance any one of the following:

1. Purchase of a fully developed residential lot or adjoining lots not exceeding 1,000 square meters;
2. Purchase of a residential house and lot, townhouse or condominium unit which may be;
   1. Old or brand new
   2. A property mortgaged with Pag ibig Fund
   3. An acquired asset
3. Construction or completion of a residential unit on a lot owned by the member.

Circular No. 310 – For End-User Home Financing up to Php 6,000,000.00 Maximum Amount:

The Pag-IBIG housing loan may be used to finance any one or a combination of the following:

1. Purchase of a fully developed lot or adjoining lots not exceeding one thousand square meters (1,000 sq. m.), which should be within a residential area;
2. Purchase of a residential house and lot, townhouse or condominium unit, inclusive of a parking slot, which may be:
   1. Old or brand new;
   2. A property mortgaged with the fund;
   3. An acquired asset; or
   4. Adjoining houses and lots / townhouses / row houses / condominium units.
      1. For retail housing loans, the subdivision where said residential units are located must have complied with all the required facilities pursuant to PD No. 957 and BP No. 220.
3.  Construction or completion of a residential unit on a lot owned by the member;
4. Home improvement, i.e any alternation in an existing residential unit intended by a homeowner to be a permanent integral part thereof, which will enhance its durability and material value;
5. Refinancing of an existing housing loan with an institution acceptable to the Fund; provided that, the account reflects a perfect repayment history for at least one (1) year prior to date of application as supported by the borrower’s official receipts.
6.  Combination of loan purposes shall be limited to the following:

• Purchase of a fully-developed lot not exceeding one thousand square meters (1,000 sq. m.) and construction of a residential unit thereon;
• Purchase of a residential unit, whether old or new, with home improvement;
• Refinancing of an existing mortgage with home improvement; or
• Refinancing of an existing mortgage, specifically a lot loan, with construction of a residential unit thereon.

Source:

http://www.pagibigfund.gov.ph/