Part One of this series talks about Pag-IBIG Member Eligibility. Pag-IBIG Housing Loan Program is one of the preferred payment schemes of most home buyers. So in a series of posts, we will talk about what the program is, how to avail it and a myriad other things that will help you decide if Pag-IBIG’s loan program is for you.
What is the Pag-IBIG Housing Loan Program?
The Home Development Mutual Fund (HDMF) better known as the Pag-IBIG Fund is a government mandated housing loan program that offers some of the most affordable terms and interest rates for its members. As HDMF is a government controlled project, membership is exclusive to Filipinos.
A member can avail of the Pag-IBIG Housing Loan Program if he/she intends to:
- Purchase of residential lot
- Purchase of house & lot, townhouse or condominium unit (old, new or acquired asset)
- Construction or completion of residential unit
Loans are classified into two purposes, the regular housing loan and combined loan purposes.
Loan Purpose – Regular Housing Loan
- Purchase of residential lot or adjoining lots (max 1,000 sq.m.; min 28 sq.m.)
- Purchase of house & lot, townhouse or condominium unit (adjoining units)
- Construction of house
- Improvement of house
- Refinancing of an existing loan
Combined Loan Purposes
- Lot purchase with house construction
- Purchase of residential unit with home improvement
- Refinancing with home improvement or house construction
Who is qualified to apply for Pag-IBIG Housing Loan Program?
All Active Pag-IBIG members with :
- at least 24 months contributions
- not more than 65 years old at the date of loan application, insurable and is not more than 70 years old at the date of loan maturity legal capacity to acquire and encumber real property
Must also have:
- No outstanding Pag-IBIG housing loan
- No Pag-IBIG housing loan foreclosed, cancelled, bought back, or voluntarily surrendered
- If with existing Pag-IBIG Multi Purpose Loan (MPL), payments should be updated upon Housing Loan application
Now let us break down the eligibility requirements. Here are some tips and further explanations on qualifying for the loan.
- At least 24 months contribution – Members may pay for the contributions of the lacking number of months. For example, the member has paid only 20 months, he/she may pay for the 4 months contribution in advance so that he/she reaches the required 24 months contribution.
- The age of the member applying for the loan plays a big part in determining the loan term and even the loan amount. The younger the member, the larger the loan he/she can actually be eligible for as he/she can apply for the longest loan term.
For example, a 25 year old member can avail of a P1,000,000.00 housing loan on a salary of Php 20,000.00 a month while a 50 year old member needs at least Php 25,000.00 salary per month for the same loan amount. Why? Because the 25 year old member can avail of a 30 year loan term, thus a lower monthly amortization and a lower required salary.
- No outstanding Pag-IBIG housing loan – If a member has unpaid housing loans with Pag-IBIG, it goes without saying that he/she is no longer eligible for another one.
If you have any questions or clarifications on the topic, comment or send us a message! If you have any real estate related topics you want to us discuss, tag us in Facebook with #PropertyProINeedToKnow and we’ll talk about it here!
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Disclaimer: Please note that we are neither affiliated with the Pag-IBIG Fund nor experts on the housing loan process. These articles are written as a broad guide for would-be borrowers. For any clarifications, contact your broker or directly inquire with Pag-IBIG.