Monday, February 10, 2014
The common route to financing a new home is through bank loans. However, you may also obtain a housing loan from the Philippine government through the Pag-IBIG Fund, also known as the Home Development Mutual Fund (HDMF).
Contributing Pag-IBIG members can get a loan with an affordable interest rate and reasonable terms. Here’s how…
Eligibility for the End-User Financing Program
As with a home loan from a bank, there are eligibility requirements to qualify for a Pag-IBIG housing loan. The applicant should be a member under the Pag-IBIG for at least two years. He must be insurable and should not exceed 65 years of age at the date of application and 70 years of age at loan maturity.
The applicant should be legally capable to acquire and encumber real property, and should pass background, credit and business or employment checks performed by both the developer and the Pag-IBIG Fund.
It is also required that the applicant have no outstanding Pag-IBIG housing loans as a principal borrower or co-borrower. Having an outstanding Pag-IBIG multi-purpose loan is allowed, but should have updated payments at the time of application for the new loan.
There should also be no history of a Pag-IBIG housing loan availment that has been foreclosed, cancelled, bought back because of default or subjected to dacion en pago, that is, the borrower surrenders the property and is no longer interested in continuing the loan.
Application for a Pag-IBIG Housing Loan
If you are eligible for a Pag-IBIG housing loan, you may apply for one by following these steps…
If eligible, secure a Checklist of Requirements (COR) (requirements would depend on the loan purpose).
4. Proceed to the following:
- Bureau of Internal Revenue for payment of documentary stamps and capital gains tax.
- Registry of Deeds for transfer of the title and annotation of mortgage.
5. Submit the following documents to Pag-IBIG for the release of loan proceeds:
- Original Transfer Certificate of Title (TCT) in the name of the applicant with annotated mortgage.
- DOAS with original RD stamp.
- New Tax Declaration in the name of the applicant.
- Updated Real Estate Tax Receipt (for house and lot, if applicable).
- Occupancy Permit (secured from LGU Engineering Office, if applicable).