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.