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6 Steps on Loan Availment in Pag-Ibig

1.Complete the requirements to Apply for a Pag-Ibig Housing Load

a.      Housing loan application

b.      Vicinity map of Property

c.       Additional requirement by loan Purpose

d.      Proof of Income

e.      Updated Tax declaration and Tax Receipt

f.        Valid ID’s

g.      Certified true copy of title

2. Submit your pagibig housing loan application

There are different locations availble all throughout the Philippines for submitting loan applications. You may visit there locations here

3. Wait and receive notice of approval(NOA) and letter of guarantee (LOG)

4. Complete requirements listed in NOA

This will require you to complete all the requirements within 3 months or 90 days. All requirements including transfer of title and annotation of mortgage

5. Receive your pagibig housing loan proceeds

After step 4 is completed the agency will release your funds within 10 days and will give instructions how to secure the funds

6. Start paying your pag ibig housing loan

Starting month will be next month after you receive the funds from pagibig. Always use your 12 digit HLAN number when paying your loan as reference.

Source: PagIbig Fund

Here are some important facts about housing loans from Pag-IBIG Fund:

1.     Affordable Interest Rates: Pag-IBIG housing loans offer competitive and affordable interest rates, which are often lower compared to commercial banks and other financing institutions in the Philippines.

2.     Loanable Amount: The loanable amount depends on several factors, including your capacity to pay, the appraised value of the property, and the loan program you're applying for. Pag-IBIG offers different loan programs with varying maximum loan amounts.

3.     Loan Term: Pag-IBIG housing loans have flexible loan terms that can be extended up to 30 years. Longer loan terms result in lower monthly amortization payments, making it more manageable for borrowers.

4.     Down Payment: Pag-IBIG usually requires a down payment or equity contribution from the borrower. The down payment amount is a percentage of the property's selling price and can range from 10% to 30%.

5.     Mortgage Redemption Insurance (MRI): As part of the loan process, borrowers are required to pay for the Mortgage Redemption Insurance (MRI), which provides coverage in the event of the borrower's death, ensuring that the outstanding loan balance is covered.

6.     Loan-to-Value Ratio (LTV): The loan-to-value ratio refers to the maximum percentage of the property's appraised value that can be loaned by Pag-IBIG. The LTV ratio is typically up to 90% for socialized housing, 85% for low-cost housing, and 80% for regular housing loans.

7.     Loan Repayment: Housing loans from Pag-IBIG are repaid through monthly amortization payments, which include principal and interest. Borrowers can choose different modes of payment, such as salary deduction, post-dated checks, or bank auto-debit arrangement.

8.     Member's Monthly Contribution: To qualify for a housing loan, it's important to have an active Pag-IBIG membership with regular contributions. The amount of your monthly contribution depends on your income and the program you're enrolled in.

9.     Collateral Requirements: Housing loans from Pag-IBIG are secured by the property being financed. The property serves as collateral, and the title is held by Pag-IBIG until the loan is fully paid.

10.Eligible Properties: Pag-IBIG housing loans can be used to finance various types of properties, including house and lot, townhouses, condominium units, and vacant lots for residential purposes.