Pag-IBIG is a government agency in the Philippines that provides easy and affordable housing assistance to Filipinos wanting to buy or build a house. Pag-IBIG Fund, also known as Home Development Mutual Fund (HDMF), provides a wide range of benefits particularly for financing homes. Other benefits of Pag-IBIG Fund includes;
- House improvement
- Purchase of brand new or old house and lot, townhouse, and condominium unit (either with or without parking lot)
- Purchase of land minimum of 24 square meters and maximum 1,000 square meters
- Completion of construction of residential unit
- Refinance of existing mortgage
- Combination of the above mentioned purposes
Ways To Avail Pag-IBIG Housing Loan Services
- Should be an active member, meaning, the applicant makes regular contribution for at least two years
- Should have a stable source if income during application
- Should not obtain any foreclosed property or withstanding loan
Coverage of Pag-IBIG Loan
A total of P6 million can be lent on Pag-IBIG Housing loan and the interest rate is from 4.5% to 12.25% but it depends on the housing loan program that the applicant will choose.
Forms That Needs To Be Properly Filled-Out
- Membership Status Verification Slip (MSVS)
- Preliminary Loan Counseling Questionnaire
- Housing Loan Application (HLA)
All forms can be downloaded online. a processing fee of PhP1,000 should be paid by applicants. This is non-refundable.
Steps to Accomplish Pag-IBIG Housing Loan
- Fill out the previously downloaded forms and prepare the needed requirements.
- Pag-IBIG will undergo a background check on applicant. This 5-day background check is to ensure that the applicant has the capacity to pay the loan according to its financial standing.
- A Mortgage Loan specialist will then schedule an inspection which will go for another 5 days. The applicant will now be reached out for property appraisal findings.
- Once approved, the applicant will receive a NOTICE OF LOAN APPROVAL or LETTER OF GUARANTY. Contrary to that, if the application is denied, a Notice of Disapproval will be sent to the applicant.
- Other loan documents needs to be completed, notarized and submitted within the next 90 days.
- The applicant now needs to go to the Bureau of Internal Revenue to pay the capital gains tax, documentary stamps, and the annotation of mortgage for the transfer of title at the Registry of Deeds.
- Submit these documents at the Pag-IBIG office for the release of funds;
- Assignment of Loan Proceeds
- Original copy of the Transfer Certificate of Title (TCT)
- Occupancy Permit
- DOAS accompanied by the original RD stamp
- New Tax Declaration
- Real Estate Tax Receipt (updated)
- The applicant will now wait for a phone call upon the date when he can get the first check. REMINDER: By the time you claim the loan check, you need to present 2 valid IDs.
Loan payment should be made a month after the final loan was released. You can check the Pag-IBIG amortization calculator to know the amount of payment and its frequency.