Pag-IBIG Housing Loan Guidelines: Everything You Need to Know

Purchasing a house is no easy feat, especially with the current prices. That’s where the Pag-IBIG Housing Loan comes in. This is a program designed by the Philippine government to help Filipinos become homeowners, with convenient options and affordable rates.

This guide will take you through it all. Let’s get started.

What Is the Pag-IBIG Housing Loan?

This housing loan is a financing program offered by the Pag-IBIG Fund, designed to help Filipinos purchase, build, or improve their homes. It allows members to borrow up to P6 million with some of the lowest interest rates in the market. Whether you’re looking to buy a house and lot, build from scratch, or refinance an existing loan, this program covers you. Please read a related article on this: Guide to Real Estate Financing Options in the Philippines.

Why Choose the Pag-IBIG Housing Loan?

If you’ve been exploring financing options, you’ll notice that Pag-IBIG stands out for a few reasons:

If you’ve been shopping around for financing, you’ll see that Pag-IBIG is unique in a couple of ways:

• Low interest rates: It provides competitive rates to keep your monthly payments easy on the budget.
• Flexible purposes: Whether purchasing a new home, remodeling, or building, you can tailor your loan.
• Long repayment periods: You can pay for 30 years.

The actual interest rate for your loan will vary depending on the repricing period you select. To assist you, here are the current rates as of July 1, 2024, as posted on the Pag-IBIG website.

Am I Eligible for a Pag-IBIG Housing Loan?

There are a couple of requirements. Here’s the deal:

1. Active Membership: You must have a minimum of 24 months of Pag-IBIG savings.
2. Age Limit: You should be 65 years and below when you apply and not above 70 at the time the loan matures.
3. No Problematic Loan Records: If you have previously had a Pag-IBIG home loan foreclosed, canceled, or voluntarily surrendered, this might impact your eligibility.
4. Legal Capacity: This refers to the fact that you should be capable of owning and disposing of property according to Philippine laws.
5. Updated Payments: If you have other Pag-IBIG loans, such as a short-term loan, make sure you’re paying.

In case you don’t meet the conditions mentioned above. Don’t worry, your next option might be getting a housing loan through a bank.

Pag-IBIG Fund Makes Housing More Achievable for Many Filipinos

In an effort to provide Filipinos with more accessible homeownership, the Pag-IBIG Fund created more flexibility within its program. Now under Circular 396 of January 9, 2018, even close friends can assume the role of co-buyer which is not available under the previous term. This is called a tacked loan and allows up to three individuals to pool their incomes into a single Pag-IBIG housing loan.

Benefits of Tacked Loans

1. Bigger Loan Amount: Two or three people pooling incomes together have the ability to secure larger loan amount, so they can buy larger properties.
2. Simplified Loan Approval: A tacked loan makes the application stronger as it demonstrates increased financial ability and stability.
3. Joint Payment Burden: Repayment of the loan is easier since the co-borrowers take turns bearing the financial burden.
4. Flexible Co-Borrower Choice: You’re no longer restricted to family members—friends or business associates can also be part of the loan.

With these developments, home ownership has never been closer to reality, thanks to the efforts of Pag-IBIG in meeting the demands of the new generation of Filipinos.

What Can You Use the Loan For?

Pag-IBIG Housing Loan is not available just for one single purpose. For instance, you do not need to restrict yourself to buying a ready-built house. Here’s the detailed look at what you are able to do with the loan:

• Buy a place to live: This could be a lot, a house and lot, a townhouse, or even a condo unit. You may purchase a new or used property.
• Construct a House: Do you have an idle lot? If yes, Pag-IBIG can help you acquire a loan to build your own home.
• Renovation: Maybe you already have a house. In that case, you are qualified to obtain a loan to renovate or enhance your home.
• Refinancing an Existing Loan: Do you have a housing loan elsewhere? Use Pag-IBIG loan to get better rates and terms.
• A Combination of Purposes: You can use your loan to achieve multiple purposes—such as purchasing a lot and building a home.

Requirements to Avail of a Housing Loan

To ensure that your loan application gets approved, you must get all the necessary documents. Please secure the following:

• Housing Loan Application Form attached with your updated ID photo.
• Vicinity Map of the property to be purchased or refinanced.
• Proof of income (e.g., payslips, certificates of employment).
• Valid IDs of yourself and co-borrowers.
• There must be a certified true copy of the title of the property.
• Latest Tax Declaration and Real Estate Tax Receipt.

If your loan is for construction or improvement, you’ll also need building plans and a bill of materials signed by a licensed architect or engineer.

How Do I Apply for a Pag-IBIG Housing Loan?

Getting a loan can be daunting, but Pag-IBIG makes it easy with 6 simple steps. Here’s how it works:

• Step 1 – Fill out your Requirements: Start your housing loan application.
• Step 2 – Submit Your Application: You can submit your documents with the best option that suits you. To have utmost convenience and accessibility, you can submit all of them online via Virtual Pag-IBIG. If you also want the face-to-face option, just drop by the nearest Pag-IBIG Fund branch or Housing Business Center.
• Step 3 – Receive Your Approval: If your application is complete and approved, you’ll receive a Notice of Approval (NOA) and a Letter of Guaranty (LOG). This means your loan is good to go!
• Step 4 – Fulfill NOA Requirements: You’ll have 90 days to complete the post-approval requirements, such as transferring the title and annotating the mortgage.
• Step 5 – Receive Your Loan Proceeds: Once your documents are cleared, you’ll receive your loan proceeds in 10 working days. Pag-IBIG will inform you of how they will securely release the funds.
• Step 6 – Make Payments: Payments for the loan start one month after the release. You can make payments online, via Virtual Pag-IBIG, or through accredited partners.

Pag-IBIG Housing Loan Payment Options

The Pag-IBIG Fund provides a number of convenient ways to pay your monthly dues hassle-free:

• Salary deduction: If your employer has a Collection Servicing Agreement (CSA) with Pag-IBIG, they can deduct from your salary.
• Post-dated checks: A safe choice for those who still like this old-fashioned way.
• Auto debit: Automatically deduct from your bank account.
• Accredited partners: Pay over the counter or online via remittance centers and other payment facilities.

Important Details About Collaterals and Limitations

Pag-IBIG needs a clean title as collateral for your loan. This implies:

• Properties with controversies, suits, or pending court cases are not approved.
• The property should have minimum floor area and lot requirements (for example, 28 sq. m. at least for lots and 18 sq. m. at least for condos).

If your property fails the above requirements , Pag-IBIG cannot approve your application.

Claiming Your Title After Loan Repayment

Paying off your loan is a huge responsibility, and claiming your property title is a huge milestone. Pag-IBIG makes the process easier for you. Follow these three simple steps:

• Step 1: Present your Home Financing Documents Claim Stub at the Pag-IBIG branch indicated.
• Step 2: Submit all required documents, which may vary depending on whether you’re the owner, a representative, or an heir.
• Step 3: Wait for the title’s release, sign the logbook to confirm receipt.

When you are ready to claim your property title upon finishing your Pag-IBIG Housing Loan, the documents needed are based on the role of the claimant. Here is a step-by-step breakdown to guide you in preparation:

For Owners

If you are the homeowner, you require:

• Claim Stub (HQP-HLF-115)
• Two IDs with photo and signature
• Marriage Contract (if married at the time of claiming the title)

For Representatives

If you are representing the owner to claim the title, you will need:

• Claim Stub (HQP-HLF-115)
• Special Power of Attorney (SPA) from the owner
  • If the owner is overseas, the SPA should be notarized upon departure or by the Philippine Embassy
  • If the owner is ailing or physically incapacitated to sign, there should be a medical certificate
• Two identification cards (both of the owner and representative)

For Heirs (If the Owner Has Died)

If the registered owner is deceased, heirs should provide:

• Claim Stub (HQP-HLF-115)
• Death Certificate (PSA copy)
• Birth Certificates of heirs (and siblings in case the owner was single)
• Marriage Certificate (if the owner was married)
• Certificate of No Marriage (CENOMAR) (if the owner was single)
• Affidavit of Guardianship (in case of minor or incapacitated heirs)
• Proof of Surviving Heirs (notarized document)
• Special Power of Attorney (SPA) of the heirs
• Other legal documents (such as a Will, Deed of Partition, or Court decree, if applicable)
• Two Valid IDs (each heir)

For Assignees or Successors-in-Interest

If the property is being passed on to some other individual, they require:

• Claim Stub (HQP-HLF-115)
• Death Certificate of the owner (if the property is being inherited)
• Birth Certificates of heirs (if required)
• Marriage Certificate or CENOMAR (as per owner’s marital status)
• Affidavit of Guardianship (if the heirs are minors)
• Proof of Surviving Heirs (notarized)
• Special Power of Attorney (SPA) executed by the heirs
• A Deed of Sale or Assignment (if existent)
• Two IDs valid (for heirs and claimant)

Simplifying the Process

You can expedite the title-claiming process and reduce the hassles if you accomplish the necessary documents. In case you are unable, go to your nearest Pag-IBIG office.

Under R.A. 9510 (Credit Information Systems Act), Pag-IBIG submits credit information about borrowers to the Credit Information Corporation (CIC). This regulation assists the agency in ascertaining your creditworthiness. Don’t fret, though. Pag-IBIG maintains all the borrowers’ credit details confidentially. The data is used only for legal purposes, and cannot be accessed by unauthorized individuals. This scheme promotes rational lending without compromising the safety and security of your personal data.

Why Pag-IBIG Housing Loan Is Your Best Option

Pag-IBIG provides easier access to home ownership for Filipinos. It’s a program that allows more individuals to have their dream house with easy and flexible terms.

Here’s why it’s so good:

• Borrow up to P6 million on low interest rates
• Pay for more than 30 years to keep your monthly payments manageable
• Use the loan for purchasing, construction, or home repairs
• Easy payment schemes to suit your budget

With Pag-IBIG Housing Loan, home ownership is easy and within reach! It’s hassle-free, flexible terms, and rates are among the lowest in the land. No wonder more Filipinos rely on Pag-IBIG for their home financing.

So why wait? Log on to Virtual Pag-IBIG or visit your nearest branch today! Your dream home is nearer than you imagine.

Pag-IBIG Housing Loan Questions to Review