Basic Qualifications in Applying for Pag-IBIG Housing Loan

Pag-IBIG housing loan is a program under the Home Development Mutual Fund that offers opportunities to Filipino families in owning an affordable and decent shelter in the Philippines. Pag-IBIG interest rates range from 5.375% to 10% over repayment terms of up to 30 years. Because of its budget-friendly and bendable home financing schemes, many Filipinos apply for a housing loan from Pag-IBIG Fund in hopes of finally purchase a low-cost house. As of the recent record of MoneyMAX PH, the government agency released about PHP 65 billion in housing loans to over 80,000 borrowers.

There are two modes of applying for a Pag-IBIG housing loan. One is the Developer-Assisted wherein the developer assists the member in one’s housing plan and the second is the Retail, which the member applies directly to the Fund. Indeed, Pag-IBIG is a great choice for homebuyers to consider when planning to get a house for the family. This government’s initiative has due process for an individual to apply for the Pag-IBIG housing loan grant, but what are its qualifications? Here are the eligibility requirements that a homebuyer should be guided in housing loan availment.  

On Pag-IBIG Membership

One must be an active member under Pag-IBIG Membership Program for at least twenty-four months. Remittance of at least 24 membership savings at the time of loan application is set as evidence. If there is an instance where a new member wishes to apply for a housing loan, one shall be required to pay in a lump sum the required 24 MS. As well as a member with less than 24 MS may settle the remaining payables for the succeeding months in bulk amount. All these cases, the overall sum payment shall be based on MS that corresponds to the loan amount applied for. Overseas Filipino Workers who are Pag-IBIG members under Pag-IBIG Overseas Program MS shall be considered in counting the total number of MS for housing loan availment.

Applicant’s Age 

An anticipating homebuyer should not be more than sixty-five (65) years old at the date of a loan application, must be insurable and not more than seventy (70) years old at loan maturity. Unfortunately, getting a house loan at an advanced age is quite a hindrance to whether one is using Pag-IBIG or any bank. If one can afford to house at a young age, it is suggested to start the application as early as possible. This is because the maximum loan period is 30 years. For senior citizen applicants, the loan period is determined by how close one’s age is to the maximum age of 70. In a specific circumstance, if one is 50 years old at the time of application one maximum loan period is only 20 years because a senior applicant will be turning 70 by the period ends.

Legal Capacity & Passed Satisfactory Background

Applicants must have the legal capacity to acquire and encumber real property; passed satisfactory background, credit, employment and business checks of Pag-IBIG Fund; no outstanding Pag-IBIG housing loan, either as a principal borrower or co-borrower; no outstanding Pag-IBIG multi-purpose loan in arrears at the time of loan application; no Pag-IBIG housing loan that was foreclosed, cancelled, bought back due to default, or subjected to Dacion en Pago. Dacion en Pago is a mode of extinguishing the debtor’s obligation in which a property is alienated to the creditor in satisfaction of a debt in money.

The Capacity to Pay

Monthly amortization should not exceed one-third of one’s gross income. This rule is commonly by most financial institutions when qualifying a loan applicant. For Pag-IBIG Financing monthly amortization principal and interest should not be more than 40 % of one’s Net Disposable Income. An applicant must always acknowledge the interest rates, loan terms, and miscellaneous fees. Aside from the loan dues, a homebuyer must be ready whenever there are unexpected circumstances whether personal finance or in housing loan itself. 

It is advisable to visit the official website of the Pag-IBIG Fund for further discussions on the different benefits of its housing loan as well as Pag-IBIG housing for sale, Pag-IBIG housing rent to own, Pag-IBIG foreclosed and other programs under the Home Development Mutual Fund. Above are just the basic guidelines to qualify for the Pag-IBIG Housing loan as for starter. 

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