How to Apply for Pag-IBIG Housing Loan

Pag-IBIG Fund is a mandatory government savings loan program. Also known as Home Development Mutual Fund (HDMF), the word “Pag-IBIG” is actually an acronym which stands for Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno).

Pag-IBIG Fund  was created on June 11, 1978 under the presidency of Ferdinand Marcos. Pag-IBIG Fund had created a number of programs designed to offer financial assistance for Filipinos’ loaning needs. One of these is the Housing Loan. Any Filipino who considers buying a home yet does not have sufficient funds might consider Pag-IBIG Housing Loan.

What Exactly is Pag-IBIG Housing Loan?
Pag-IBIG Housing loan is a program that grants housing loans and/or monetary assistance to Pag-IBIG Fund members. Home loans financing can cover up to 6 million with interest rate from 4.5% to 12.25% depending on the loan housing program.

The following are the benefits of Pag-IBIG Housing Loan:

• Purchase of a fully-developed lot;
• Purchase of a house and lot in a residential area;
• Purchase of a townhouse or a condominium unit;
• Completion of a residential unit;
• Home improvement

Note: Lots from Pag-IBIG Housing Loan project measure from 24 sq meters to no more than 1, 000 sq meters.

Who Can Avail the Pag-IBIG Housing Loan?

• Any Pag-IBIG member
• A minimum of 24 monthly contributions

Note: A person can pay in lump sum to compensate the 2-year monthly contribution requirement

• Has made payment at least 5 monthly contributions in the last 6 months.
• Must be no more than 65 years old at the date of loan application
• Exhibit a capacity to acquire a real property
• Has able to pass the credit and employment check
• Should have proven source of income
• Must have no outstanding Pag-IBIG housing loan
• Must have clear record in Pag-IBIG Housing loan such as no loan that was foreclosed or cancelled

10 Steps to Apply for the Pag-IBIG Housing Loan

1. Attend the loan counseling session conducted by the Pag-IBIG (non-compulsory). Pag-IBIG loan session usually runs for 2 hours.
2. Fill out the Housing Loan Application form.
3. Obtain the necessary forms and requirements. The checklist of requirements varies on the purpose of the loan.
4. Pay the processing fee Php 1,000 (non-refundable)
5. Application for loans will be assessed which often runs 2 to 3 weeks. Wait for Notice of Loan Approval.
6. If approved, sign the loan documents.
7. Go to Bureau of Internal Revenue. Pay for documentary stamps as well as the capital gains tax.
8. Proceed to the Registry of Deeds for the annotation of mortgage and transfer of the title.
9. Go back to Pag-IBIG and present the necessary documents for the release of loan proceeds. This includes Original Transfer Certificate of Title (TCT), Annotated mortgage, DOAS with original RD stamp, New Tax Declaration, Updated Real Estate Tax Receipt (for house and lot), Occupancy Permit and Assignment of Loan Proceeds.
10. Go to cashier to pay the first month amortization immediately upon receiving the loan proceeds. Do not forget to bring at least 2 valid IDs.

Important: A mortgage can be defaulted or foreclosed if you are able to pay the monthly contributions for 3 consecutive months.