If you’ve made that big decision to buy a house, chances are you’re also already choosing from the many possible financing options available to you because, let’s face it, only a few people can afford to pay cash for big purchases like property acquisitions.
One alternative that private sector employees should consider when acquiring a house and lot is to take out a housing loan from the Home Development Mutual Fund (HDMF), more popularly known as Pag-ibig Fund.
Republic Act 7742 has made membership in the fund mandatory for private sector employees earning 4,000 pesos and above. If you’ve been contributing religiously to the fund for at least two years, you probably quality for that loan.
Pag-ibig Fund allows borrowing of up to 2 million pesos to fund any of the following:
* purchase of a fully developed lot in a residential area
* purchase of a lot and construction of a house on it
* purchase of a house and lot, townhouse, or condo unit
* construction of a house on a lot owned by the member
Pag-ibig Central Visayas senior mortgage account specialist Senen D. Catingub Jr. says that in determining the maximum amount that a member may take out as a loan, the fund decides based on the “lowest” from among four factors:
1. Contribution. The table below shows the schedule of contributions and the corresponding loanable amounts. POP in the first column means Pag-ibig Overseas Program and the amounts in column 2 under the heading Pag-ibig I and II as well as in the third column under loan amount are in Philippine peso.
Hence, if your monthly contribution is 500 pesos, your loanable amount is over 1 million to 1.1 million pesos.
2. Loan-to-collateral ratio. Some subdivision or property developers offer a buy-back provision for housing units sold through various financing schemes.
The provision serves as a guarantee that the property developer will reacquire housing units foreclosed by financing institutions due to non-payment of borrowers.
Pag-ibig fully covers housing units costing up to 300,000 pesos even without a buy-back guarantee and over 300,000 up to 750,000 pesos with buy-back guarantee. The fund will cover 90 percent of the cost of housing units worth over 300,000 up to 750,000 pesos without a buy-back guarantee.
Housing units that cost over 750,000 up to 1 million pesos are only 95 percent covered if with a buy-back guarantee and 85 percent covered if without.
Pag-ibig covers 90 percent of the cost of housing units worth over 1 million to 2 million pesos if with a buy-back guarantee and 75 percent of the cost if without.
3. Actual need. This represents the amount of the housing unit as stipulated in the contract to sell, license to sell, amount of loan applied for, or cost estimates.
4. Capacity to pay. Pag-ibig Fund takes into consideration the member’s capability to pay the monthly amortization of his or her housing loan. It requires that the monthly amortization of the member on his or her loan must not be more than 40 percent of his or her net disposable income. Hence, if a member’s take home pay is 20,000 monthly, his or her monthly amortization must not exceed 8,000 pesos.
Other uses of a Pag-ibig housing loan, aside from the four mentioned above, are: home improvement and refinancing of an existing loan in an institution acceptable to the fund.
Aside from meeting the contribution requirement, Pag-ibig also requires that borrowers must not be more than 65 at the time of the loan application and not more than 70 at the date of loan maturity, they must not have any outstanding housing loan either as borrower or co-borrower, and must not be in arrears in their multi-purpose loan repayment.
Pag-ibig charges 3,000 for housing loan processing fee. The 1,000 pesos is paid at the time of the processing while the remaining 2,000 pesos is taken from the loan proceeds upon its release.
The monthly amortization of the housing loan may be paid in two ways: through salary deduction or by issuing 12 post-dated checks to cover one year of payment.
Payment of the monthly amortization starts a month after the full or final release of the loan.
By fully developed lot, Pag-ibig means land that is free from squatters, with access to electricity and water, with provision for drainage and road right-of-way, and with existing land monuments.
Also, the lots to be acquired using the loan must be free from any encumbrances.
The maximum term of a Pag-ibig housing loan is 30 years.
hi,
Gaano katagal ang paghuhulog ng isang member ng PAG-IBIG bago makapag avail ng housing loan? kung halimbawa less than two years ang contribution pwede bang bayaran yung remaining balance para makapag avail ng housing loan? kailangan po ba ng financial statement o collateral para makapag avail ng housing loan?
hoping po ako na masagot ang tanong ko para po malaman ko kung may kapasidad po ako para sa housing loan.
Maraming Salamat po.
Edmund, as far as we know, you need to have two years of uninterrupted contribution.
hi,
nakapagloan na ako sa pag-ibig just this year.. its a salary deduction.. Can i also apply for a housing loan thru pag-ibig?
Thanks
Gud am;
Ask lng po ako if ano po ung particular location ng pag-ibig housing here in davao. or the contributor ng pag-ibig dito sa davao. reply asap,…thanks
Hi!
I am interested on buying a condo here in manila total selling price is PHP 3,668,845.47.
now i have paid the 20% and the 80% BALANCE PHP 2,935,076.3 I plan to pay for with a Pag-ibig fund loan.
My plan is pay the 24months contribution on one payment. would that be possible?
my concern is that my monthly budget for the rent is below 18k a month. Will that be applicable? i mean is there a way i could pay below 18k/month?
please help me
hello po!!kmusta?
SIR;nnd2 po ako sa aruba.last vacation po nmin sa pinas ngpamember po kming magasawa sa PAG-IBIG.binayaran napo nmin ang 2years pra po makapagloan po kmi ng bahay(house & lot)someday…pano po ba? o ano ang dapat nming gawain;kc while nnd2 pa ho kmi gusto ko po sanang mgkaroon ng bahay dyan sa atin…sa cagayan de oro city po balak nming kumuha ng house & lot…sana po matulungan nyo ako…at sana padalhan nnyo dn po ako ng mga pictures ng bahay at lugar…MARAMING SALAMAT PO…
I have received the “Notice of Approval” from HMDF for a fully developed lot at Cavite. My applied loan is 300,000. It was approved but on the breakdown, the net loan proceed is just 277,000++ because of some processing fees. Do i need to pay the balance to our developer since the lot costs 300,000?
hi, im a housewife, i want to be a member of pag-ibig…my husband works in their family business…can i be a member ng pag-ibig on my own contribution, wat requirements kailangan?
ask ko lang po.kung pwede ku pa bang ma avail yung 1,500,000
10 years na pu akong nag huhulog sa pag ibig ofw rin pu ako,den member din pu ako ng pop kahit may contribute na ako sa pag ibig
dear sir/mam, member na po ang husband ko nag nag apply po kami ng house contruction ok na po lahat ng paper namin for inaantay na lang po namin ang sa issue ng check ilan araw po ba yun pag progses nun kasi sabi samin 5 to 7 working day sakto po ba talaga yun araw na yun o tatagal pa.gusto ko na po kasi matapos ang bahay na pinagagawa namim kaya po ako nag tatanong gaano po ba katagal.salamat po
hi sir/madam good day I just want to ask something about getting a land loan with pag-ibig because my broker said the land that i want to get from tagaytay is not allowed for loan in pagibig. so now in worried if it is legal or what so please let me know before i pay the reservation fee of 10k. what will be the assurance that i can get from them that the land is legal and safe to buy. please help me. thank you very much…
Hi, I am an ofw in Saudi. I paid my pag ibig in advance equivalent to 2 years. I wanna know if i am eligible for housing loan. I f I am, can my wife process this for me? Please help me. I wanna know how it works.
How much monthly contribution should I remit, should I need to loan for 5million? Is it possible that I’ll make a balloon payment for a year contribution, then apply for loan.Can I avail the maximum number of years to pay?
Please do reply ASAP, thanks
may i lo loan po sana ako sa pag ibig,a parcel of land which is patented last may 2007, upon submission of the requirements pag ibig noticed the provision of section 118 of denr stating na di pwede isalin ang titulo except in favor of government or legally constituted institution. na reject po ang aking application because of that. confused po ako kasi ang pag ibig po ay under govt. and i cant understand why did the pag ibig reject my application.
hi,
I am a home based tutor so I am not under any company. Can I still be a PAG-IBIG member? what kind of documents will I need to ba a member?
I hope I could hear from u.
Thanks.
Just want to ask what are the qualifications for a house improvement loan and how much is the maximum loanable amount if my net pay is around 22K a month. tnx!
pwede po bang iloan ang house and lot na may extra judicialsettlement with sale, pero may ikocollateral kmi n titulo nming mag asawa
good day! ask ko lng po kun pwede mg-avail ng housing loan ang asawa ko? OFW po sya ngayon, dati monthly ang contribution nya s pag-ibig, na-stop lng nung umalis sya sa dati nyang work dito s Pilipinas last 2007. activated p po ba ang membership nya? ano po ba ang kailangang i-submit na documents? pakireply po sa e-mail ko. thank you!
gud day!
mam, ask k lng po anong type ng loan kapg yng illoan k property my bahay pero kailngan ng improvement?slamat po.
Dear sir/madam,
I am planning to apply for a housing loan for a house&lot @ wedgewood subdivision in Pangasinan. I am still paying the downpayment which will last for a year. My agent says that if I decide to get a pag-ibig loan,after we pay the 30% downpayment,I still need to pay 2 years amortization directly to their developer – which amounts to in-house amortization,to prove that I am a good payer. Then and only after that 2 years,will they pass the requirements for pag-ibig housing loan. This doesn’t make sense,since what I know,if I apply for the loan now,considering I paid the 30% downpayment,& if my loan is approved,the remaining total contract price would be paid by pag-ibig…then i’ll start my amortization with pag-ibig w/ lower interest. Is it fair that I’ll be paying the 2 years amortization to the developer before they cooperate w/ my pag-ibig loan? I would greatly appreciate it if you could clarify this ASAP. Thanks a lot!
Gusto ko lng po mag-clarify regarding pag-ibig loan. I’m planning to apply for a loan this month. But I have some question in my mind. I am working here in makati city. I’m planning to apply for Construction of House. But the place where I plan to construct a house is in our province. We have a lot there. Is it possible to apply a loan here in manila?
Hope you answers my question.
hi,,actually gusto kong iparestructure un loan ko my 2 yrs na rin akong ngbabayad 2o yrs to pay siya…ofw ako ang yearly me umuuwi gusto ko syang gawin 5yrs lang and annual ang gusto kong settlement ng pagbabayad dahil with experiance ang hirap ipagkatiwala ng pagbabayad kahit sabihin mong sa pamilya mo pa…sad to say tuwing umuuwi ako at least 3mos un walang bayad knowing na monthly ako ng sesend ng pangbayad…i do hope u can reply me as soon as possible kz im’ going back on march and im eager to fix this so plz let me know the requirments for restructure.and is it possible ba na annual ang pagbabayad thanks…kz ala na namand direct bank from hk sayang nga kung pede ang direct payment mas secure.thnks a lot
hi..itatanong ko lang po sana kung pde pdin akong mg-avail ng housing loan khit na meron akong existing pag-ibig salary loan? salamat po.
work po ako sa bines ng sister ko,pro ang sweldo po nmin ay kaliwaan lang po wala pong sobre o anuman para ibidenxa,maayos nman po ang sweldo,pde po pa akong magapply sa pagibig kahit selfcontribution nlang po?wla po akong cert.of employment canteen lang po kc,pro kaya ko pong maghulog,
Hi, I am a housewife from cebu city, i want to be a member of pag-ibig…my husband works in canada, can i be a member ng pag-ibig on my own contribution, ano po mga requirements na kailangan?