How to Apply Pag IBIG Housing Loan 2019

Are you planning to finally have a house of your own? If you’re low on budget and can’t afford the high interest rates of housing loan from banks, the best resort is to acquire a house from Pag-IBIG Fund. HDMF (Home Development Fund), or more known as Pag-IBIG, is the most common option of Filipinos if they want to have a reasonably priced house and lot. But first, like Pag IBIG multi purpose loan you have to check the requirements and documents needed on how to apply Pag IBIG housing loan.

Pag-IBIG has actually simplified the process of application and minimized the requirements making it easier for anyone who would like to apply for Pag IBIG housing loan. You just have to make sure that you have complete documents.

Eligibility for Pag IBIG Housing Loan

• Filipinos who have at least twenty four months of Pag-IBIG contribution; for new members, they can pay in lump sum to avail of the loan
• Has no outstanding arrears in multi-purpose loans
• Has no outstanding housing loan in Pag-IBIG

Types of Housing Loan

• To acquire an existing condominium unit, townhouse unit, or residential house & lot
• To obtain fully developed residential lots or its adjoining lots but not to be more than a thousand square meters
• To purchase a recently constructed property or brand new house and lot
• To buy a property that is currently under mortgage with Pag-IBIG
• To purchase foreclosed property that had been recently acquired by Pag-IBIG
• Transfer of existing housing loan from another financial institution
• For constructing a new house owned by the member or for home improvement

Read also: Benefits in Saving on MP2 Pag IBIG Program

Pag IBIG housing loan requirements and documents needed

1. Requirements of a loan application

• Housing Loan application which you may get from any Pag-IBIG office
• ID photo of both the borrower and co-borrower should be attached to the housing loan application form
• Xerox copy of one valid ID (back to back) of both the Principal borrower and Spouse, co-borrower and other half, seller and other half, and the Developer’s authorized representative and Attorney-in-Fact (if applicable)
• Current tax declaration of property
• Certified True Copy of TCT (Transfer Certificate of Title) of the property; for condo units, TCT of the land and True copy of the CCT (Condominium Certificate of Title)
• Xerox copy of latest OR for Real Estate Tax
• Contract to sell or any similar agreement between the seller and the buyer
• Sketch of the property and Vicinity map
• Proof of Income

2. Borrower’s Proof of Income (Any of the following will do)

• Latest ITR (Income Tax Return) with BIR Form No. 2316
• Notarized CEC (Certificate of Employment and Compensation) which indicates the gross monthly income together with allowances or any other benefits
• One month payslip within the last 3 months earlier than the date of application and should be certified by an authorized representative of the company

For government employees;

• One month latest payslip
• CEC or ITR should be submitted as proof of income

If you’re self-employed, you can use any of the following;            

• Audited Financial Statements, ITR, Official tax payment, Business Permit and DTI Registration
• Bank Statement for last twelve months (if income is from a foreign source)
• Certified True Copy of Transport Franchise

Other legal documents that will validate your source of income

• For OFWs;
  • Employer/Employee Contract or the POEA standard contract
  • CEC written on the Company’s official letterhead and signed by the employer
  • ITR that was filed in the host country

Processing Fee

• Applicants should pay a non-refundable amount of Php1,000 upon filing and submission of the application form.
• Another non-refundable Php2,000 appraisal fee should also be paid upon filing
• Php2,000 which will be deducted from the proceeds when the loan is released

Requirements upon Approval of Loan

• TCT/CCT under the name of the borrower/co-borrower with appropriate mortgage annotation that is in favor of PAG-IBIG
• Recent Tax Declaration and Real Estate Tax Receipt
• If on loan mortgage; agreement that had been registered with the RD and should have RD’s original stamp
• Completely filled-out and notarized Promissory Note
• Disclosure Statement on Loan Transaction

Other Requirements

• For OFWs

1. SPA (Special Power of Attorney) that was notarized before the departure date.
2. The following documents should also be submitted if Pag-IBG Fund requests for it;

• A valid Certificate of Membership from the OWWA
• Overseas Employment Certificate
• Payslip which indicates the period covered and income
• Passport with appropriate visa (must be working visa)
• Residence permit
• Professional License that was issued by Host country
• Record of Bank Remittance

Take note that most of these documents are in the native language of the employers so make sure that you have a copy translated in the English language.

• For OFW over 60 yrs. Old
  • Medical Questionnaire Form
  • A copy of the medical examination result done before overseas assignment (as required by the employer)
• For OFWs 60 yrs. Old and above (Loan amount between Php2M-6M)
  • Medical Questionnaire Form
• For properties acquired from a Corporation or Developer
  • License to Sell
  • Secretary’s Certificate with the Authorized Signatory of the Developer or Corporation
  • 1 valid ID of the Authorized Signatory and Corporate Secretary of the Developer and one back to back photocopy of the same

Check the link below for Pag ibig housing loan computation. Visit this link Pag-IBIG Fund Housing Loan Affordability Calculator

Sample indicative figures instantly!

Find out how much you can borrow based on your income, preferred repayment term, fixed pricing period, and/or estimated value of the property you are meaning to buy.

Should you have any further inquiries, contact any Pag-IBIG office near you.