Owning a home is one of the most cherished fantasies someone can have. It's a goal for many of us, and we're still working toward it because nothing compares to the sense of accomplishment that comes with owning a piece of property with your name on it. Nonetheless, many Filipinos are prospering now in order to provide a house for their families. A buyer can choose from three popular financing alternatives when purchasing a home. The first option is to employ in-house financing from one's own wallet or savings. The second option is to borrow money from a bank. The third option is to take out a Pag-IBIG Housing Loan.
The Pag-IBIG Fund has different types of housing loan programs available for people in various income brackets. For those who are in the middle to higher income brackets, they may opt for the regular Housing Loan program that allows borrowing of up to P6M. On the other hand, low-income and minimum-wage members earning up to P15,000 per month in the National Capital Region (NCR) and up to P12,000 per month outside the NCR can opt for the Pag-IBIG Fund Affordable Housing Loan. Pag-IBIG Fund offers a discounted rate of 3% per year for socialized house loans up to P580,000 under this loan program. The comparison of both programs can be summarized in the table below.
A qualifying member can apply for a Pag-IBIG Housing Loan by submitting a completed application form and meeting the conditions at any Pag-IBIG Fund branch, or through an approved partner-developer from whom the member will acquire a property. Qualified members can also apply for a loan by going to Virtual Pag-IBIG and selecting "Apply for a Housing Loan" under the Apply for or Manage Loans option. But what exactly would one need to do, accomplish, or partake in in order to qualify?
How Exactly Does One Qualify and Apply for a PAG-IBIG Fund Housing Loan?
First, one has to be a member of the Pag-IBIG Fund, meaning you must be actively contributing. Also, at the time of application, you must be a Pag-IBIG Fund member with 24 months of contributions. New members who have been making contributions for at least 12 months can make a lump-sum payment to finish the requisite amount of contributions. Members who have contributed for at least two years and whose home loans total more than P500,00 will be required to pay the upgraded membership contribution rates when the loan is approved.
What Are The Required Documents in Order to Successfully Apply?
When applying for a housing loan, the following requirements must be prepared and passed:
- (a) 3 Sets Housing Loan Application with ID photos of the borrower (properly accomplished and duly notarized)
- (b) 3 pcs 1 x 1 ID Picture
- (c) Verified Tax Identification Number
- (d) Members Data Form (MDF)
- (e) Latest 24 Months Pag-IBIG Contribution; Certificate of Pag-IBIG Contribution or Latest Contribution Receipt
- (f) Authorization Letter prior to Employment Verification
- (g) Employee Statement of Accumulated Value
- (h) Birth Certificate.
- (i) Marriage Contract if married
- (j) Foreign Marriage -Passport Copy of Spouse and 2 Valid ID’s with 3 Signatures
- (k) 2 Valid ID’s (Company/ Passport/ Government ID’s) Photocopy 3 sets with 3 signatures (If married please include Spouse ID’s; If OFW, Visa ID / Resident Identity Card)
- (l) Notarized Original Certificate of Employment with Compensation ( Local and Private Employer only)
- (m) Online Job- Proof of Income Receipt like converted to Philippine Peso like GCASH/ PayPal/ Bank Statement
Specifically for different types of employment, you would need:
- -Notarized Original Certificate of Employment with Compensation (Local and Private Employer only)
- -Photocopy of COEC and Overseas Employment Certificate (OEC) from POEA (OFW). If Original of COEC, Provide a Photocopy of Employment
- -Contract from Employer (OFW)
- -SPA Pag-IBIG Format Red Ribbon or Notarize SPA PAG-IBIG and Photocopy of Passport with proof of entry and exit in the Country (OFW)
- -Photocopy of Employment Contract (OEC) from POEA with E-ticket (Seamen)
- -Original Latest 3 months Pay Slip with the signature of HR/Employer (Government Employee)
- -Latest 2yrs Bank Statement with Bank Certificate (Online & Commission Basis)
- -2307 and Company Permits (Commission Basis)
- -Latest Business Permits -Mayor’s Permit, DTI, COR & 3 Years ITR w/ Bureau of Internal Revenue (BIR) Stamp and Detailed Business Sketch with Landmark (Self & Local Employed)
Pre-requisites for Home Loan Authorization
Attending Loan Counseling is one of the criteria for pre-loan authorized members. An examination of the property must be undertaken upon completion as a condition of the loan being released. Prior to submitting the appropriate documentation, the subject property should have been requested and completed. You will receive another call once the check is ready to be picked up. For a successful property turnover, the developer will get a check or loan proceeds immediately from the lender. It simply refers to the monthly payments you'll make to pay off your mortgage over the next few months and years.
Processing Your Application and Other Important Details
After you've submitted your loan application, it will be completed in 17 days. You have the option of borrowing up to six million pesos. However, the amount you will be awarded is determined by the lowest of the two amounts: the specific amount you require and your loan entitlement, which is determined by your ability to pay or your loan-to-appraised value ratio. Under the Full Risk-Based Pricing Framework that you selected, the interest rate will be determined by the re-pricing period.
Additional Tips on How to Ensure A Successful Application
Have a good credit score. A credit score incorporates important personal information as well as information about your previous financial dealings with banks and lending agencies. Make sure your credit score is up to date, accurate, and free of obligations that haven't been paid. The Credit Information Corporation (CIC) or any of its certified credit bureaus can provide you with a free copy of your credit score. The key to obtaining approved for the employed is to demonstrate that you have a respectable work history. Job hopping and gaps in job history might be considered warning flags. Working for a long time implies having a steady income and being able to pay off your mortgage.
Final Thoughts
Once your home loan has been authorized, you may begin construction on your ideal home, where you will be able to make new memories with your family. These memories are best made in an area that is socially significant, developed, and secure.
For more information on Pag-IBIG Fund's services, visit their website at www.pagibigfund.go.ph . Check our Beginner's Guides (Part 1 and 2) to get started on your housing loan venture and finance your dream home today.