How to Apply for a Pag-IBIG Housing Loan

These are the documentary and technical requirements that you will need when you apply for a home loan from Pag-IBIG Fund.

Documentary requirements

-          Borrower’s most recent ID pictures and Pad-IBIG Housing Loan Application Form (PHLAF)

-          MSVS or Membership Status Verification Slip

-          Proof of income, such as an employment contract for OFWs, an income tax return for locally employed members and bank statement for the last year for those who are self-employed

-          A valid ID, photocopied back-to-back, of the principal borrower and spouse, co-borrower and spouse and attorney-in-fact, if required (During validation, the same valid ID should be presented)

-          Authorization to conduct an investigation on the member’s credit background

-          OFW additional requirement – Special Power of Attorney (should have been notarized before member has left the country, or is duly certified and authenticated by the Philippine embassy of the nation where he is currently employed)

-          Insurance coverage

* If borrower is over 60 – health statement form and full medical examination

* If borrower is an OFW over 60 or is over 60 and loaning over P2 million – health statement form

-          Marriage contract for married borrowers and co-borrowers

-          Proof of relationship if with a co-borrower (birth certificate, etc.)

Technical requirements

-          A Registry of Deeds certified true copy of the Transfer Certificate of Title or TCT, or the Condominium Certificate of Title or CCT

-          Vicinity map or location plan

-          Photocopy of the real estate tax receipt and the tax declaration

Requirements based on purpose of loan

-          For a residential property purchase – agreement between the buyer and the seller, such as a contract to sell

-          For a loan refinancing:

* A statement of account on the outstanding balance of the loan

* Either an official receipt or a valid proof of payment from the past year, or a subsidiary ledger

-          For the construction of a house, the purchase of a lot for building a house or for improving a home – building plans, specification and bill of construction materials endorsed by the licensed architect or civil engineer

To apply for Pag-IBIG Fund’s Housing Loan, head to the Pag-IBIG NCR or regional branch, present a valid ID and claim an MSVS. After filling it up and giving it to them, it will be given back to you, as well as an acknowledgement receipt, the PHLAF and the Checklist of Requirements.

Go to the Pag-IBIG NCR/regional branch that has territorial jurisdiction over the property for which you are applying for a loan. This is where you will hand over two accomplished copies of the PHLAF together with the documents required of your loan. Update or fill up the information on the Membership Registration System online to claim the computer-generated Member’s Data Form (MDF), which contains the registration tracking number (RTN).

Get a payment order form (POF), show it to the cashier and hand over a P1,000 processing fee so that you will receive a Pag-IBIG Fund Receipt (PFR). Have the PFR photocopied, take the copy to the Member Services Support Division-Servicing Department (NCR) or the Housing Loans Division (regional branches) and surrender it for the acknowledgement receipt.

(If the Mortgage Loans Specialist finds anything notable while doing the member’s credit investigation, he will let the member know within 5 working days. The property appraiser will inform the member about the schedule of the evaluation within 5 working days, and will let the member know of any findings 2 days following the appraisal.)

In the next (and last) article of this series, the approval and release of the loan will be discussed.

Advantages of Investing in Cebu Real Estate

The present condition of Metro Manila these days in terms of people and traffic have become unbearable that it is driving people to consider living in other places. Even though a lot of people ponder going overseas and living there, there are those that still think that staying in the Philippines is a better choice, and Cebu is one of the places that they consider moving to for a change of pace and scenery.

As great as it sounds to partake on dried mangoes and celebrate during the Sinulog Festival, these are not the only reasons why Cebu is seen as one of the Philippines main destinations for tourists. Because of the continuous efforts to develop the real estate and infrastructure of the Queen City of the South, many local property experts believe that Cebu is truly golden when it comes to relocation. There are a lot of benefits to buying a Cebu house for sale, and the ones listed here are only some of them.

1.       Cebu can be found in a location that a lot of local and foreign investors find to be strategic. As a matter of fact, you will find over 80% of the country’s inter-island shipping activity in Cebu, while the export business has also been enjoying massive progress compared to other Philippine cities.

2.       Investors will also be glad to know that the cost of labor in Cebu is lower than labor in Manila, and this is because the cost of living in Cebu is lower than its northern counterpart.

3.       As an area that is highly accessible through sea and air travel, Cebu has more sea linkages and domestic and international flights than Manila. South Korea, Hong Kong, Qatar and Japan are only some of the direct international flights that the Mactan International Airport offers.

4.       A resident’s diverse knowledge of Philippine arts, religion and tradition is sure to be deepened in Cebu, as this city is rich in history and culture.

5.       People who take a lot of vacations will enjoy living in Cebu as it is very close to several beaches, and it is also a ‘doorway’ to various other tourist places like Bicol, Iloilo and Cagayan de Oro.

6.       Cebu has no volcanoes, and is also out of the typhoon belt of the Philippines. Not only that, it is not susceptible to earthquakes, which makes Cebu very safe from natural calamities.

It doesn’t matter if you want to purchase a Philippine real estate property as a residence or an investment; the developments in Cebu ensure that your purchase will be worth every peso.

Information About the Pag-IBIG Housing Loan

Not everyone is lucky enough to be able to buy a house for sale whenever they feel like it. Other than the fact that being a homeowner is a huge step that requires careful consideration, owning a home also requires quite a lot of money, which not everyone has access to. Fortunately for those who are short on finances, the Pag-IBIG Housing Loan is one of the home loan options that they have to make their dreams a reality.

The goal of the Pag-IBIG Housing Loan is to assist its members in:

a. Buying a 1,000-square meter or less, fully developed piece of land in a residential location

b. Buying a house and lot, condo unit or townhouse that has a parking space (can be an old or a new property, one that has been mortgaged with Pag-IBIG or an asset that has been acquired)

c. Having a house constructed on a piece of land that they already own

d. Paying for the improvement of a home that they own

e. Refinancing their mortgage loan (on the condition that the loan has a repayment history of at least 24 months with the original lending institution; and that, within a year before the date of the application, the loan has not been in default)

f. Financing the combination of either a and c, b and d, e and d; or refinancing the loan for a lot that was purchased for the purpose of a residential unit construction

A member borrower can avail of a Pag-IBIG Housing Loan in these three simple methods:

- The member can approach the Fund with the assistance of the developer, and the developer will offer a buyback guaranty that will take effect in case the member fails to pay his monthly contributions or his amortization payments.

- The member can apply for a loan with the help of the developer, who will not offer the guaranty of a buyback.

- If he so chooses, the member can apply for the loan himself. 

These are the eligibility requirements of members who wish to apply for a Pag-IBIG Housing Loan:

a. The member has to have been making contributions for at least 24 consecutive months as a member of Pag-IBIG I or II, or the Pag-IBIG Overseas Program (POP). If the member is short on the required number of monthly contributions, he can choose to pay a lump sum based on the mandatory monthly contribution rates for members.

b. The member should be 65 years old at most at the application date and should be eligible for insurance. He should also only be 70 years old or below when the loan reaches maturity.

c. The member should be lawfully permitted to purchase real estate property.

d. The member should pass the checks regarding his background/credit as well as his employment/business.

e. The member should have no outstanding Pag-IBIG housing loan, whether as a principal or as a co-borrower.

f. The member should never have has a Pag-IBIG housing loan that was foreclosed, cancelled, bought back because of default or undergone dacion en pago.

g. The member should, at the date of his application, not have any outstanding Pag-IBIG multi-purpose loan in arrears.

In the second part of this series, the procedures involved in a Pag-IBIG Housing Loan application will be covered.

Guidelines for Avoiding Foreclosures

A foreclosure is, to put it in simple terms, when a lender decides to take back a house or any property from the owner and sells it off when the owner can’t afford to keep paying for the mortgage. Foreclosures in the Philippine real estate industry happen in two methods:

Judicial foreclosure – During a judicial foreclosure, the lending company goes to the Regional Trial court of the city where the property can be found, and they ask the judge to send a notice to the owner, which will give him 1 to 3 months to pay off whatever remains of the mortgage. If the owner fails to comply, a public auction is held to sell the property.

Extrajudicial foreclosure – In an extrajudicial foreclosure, the court does not get involved. The lender instead asks a sheriff or a notary public to supervise the foreclosure sale. However, this type of action can only happen if the foreclosure notices had been duly printed and sent.

A foreclosure might take you out of your misery as far as your mortgage is concerned, but what it will leave you is a bad mark on your credit history, which can affect you negatively in the future. You can prevent this from happening if you follow these suggestions.

Be honest. As much as you would rather run from your lender, you should instead be frank about what is going on by telling them if you are having trouble paying your mortgage loan because you’re going through a rough patch in your finances. Doing this will show them that you intend to pay back what you owe them. Telling the truth can also help you in another way; if your lender knew what was up, they might be inclined to help you. Aside from the fact that a foreclosure will also cost them money, banks are not allowed to have a large percentage of bad loans, so they’d be doing themselves a favor, too.

Refinance your home. Granted that your payments have not been defaulted yet, you can get a home loan refinancing from another bank or lender. A home refinancing will give you more time to pay off your debt and at lower interest rates, which means that your amortizations will not be too difficult to manage.
Ask about a mortgage modification. A lender might prefer to give you a loan restructuring in place of a property foreclosure. If you choose to get a mortgage modification, some of the things that will make your payments easier are lower monthly amortizations and a longer loan term. A loan restructuring also offers benefits to the lender: since banks hate having bad debts, helping you out will ensure that yours is an earning and performing loan.

Do a short sale. When you do a short sale, it means that you are trying to sell your home as fast as you can so that it won’t be foreclosed. At this point, you’re just trying to get the amount of your mortgage’s balance, so you shouldn’t expect that you can sell your property for its full price. What you do have control of, however, is that selling process, since a short sale is just like any other real estate sale, only faster.
Foreclosures are one of those worse-comes-to-worst situations that no one wants to see happen to them. However, as we never know what will happen in the future, it’s better to be ready for anything.