Pag-IBIG Housing Loan Guidelines

HOUSING LOAN PURPOSE- The Pag-IBIG housing loan may be used to finance any one of the ff:

1. LOT PURCHASE- purchase of a fully developed residential lot not exceeding 1000 sqm.
2. CONSTRUCTION of a RESIDENTIAL UNIT (CRU)- construction or completion of residential unit on a lot owned by the member.
3. PURCHASE of a RESIDENTIAL UNIT (PRU)
1. brand new
2. old/ existing
3. properties mortgaged with Pag-IBIG Fund
4. acquired assets disposed of through  sealed public bidding, negotiated sale
4. LOT PURCHASE and (subsequent) HOUSE CONSTRUCTION
5. HOUSE IMPROVEMENT (HI)- any alteration in an existing unit to be a permanent integral part thereof which will enhance its durability and material value
6. REFINANCING of EXISTING MORTGAGE LOAN (RF)- not in default within 12 months prior to application, loan repayment history for at least 2 years
7. COMBINATION of LOAN PURPOSES- (PRU+HI) or (RF + HI) or (RF [lot] + CRU)

BORROWER’S ELIGIBILITY- A Pag-IBIG member shall satisfy the following requirements:

1. a Pag-IBIG member for at least 24 months and has remitted 24 monthly contributions;
2. not more than 65 yrs old at loan application, must insurable, and not more than 70 yrs old at the date of loan maturity;
3. has no outstanding Pag-IBIG housing loan either as principal or as co-borrower;
4. has the legal capacity to acquire and encumber real property;
5. has passed satisfactory background/ credit and employment/ business checks;
6. has no outstanding Pag-IBIG Multi-Purpose Loan in arrears at the time of application;
7. had no Pag-IBIG housing loan that was foreclosed, cancelled, bought back or subjected to dacion en pago

LOAN AMOUNT- A qualified Pag-IBIG member shall be allowed to borrow an amount up to PhP 2.0M, which shall be based on the lowest of the following:

1. actual need or selling price;

2. loan entitlement (based on Pag-IBIG contribution):

    Monthly Contribution           

POP (U$)	P1 and  P2 (PhP)		Loan Entitlement
5	200	up to	500,000
	250	over	500,000 -      600,000
	300	over	600,000 -      700,000
	350	over	700,000 -      800,000
U$	400	over	800,000 -      900,000
equivalent	450	over	900,000 -   1,000,000
at point of	500	over	1,000,000 -   1,100,000
availment	550	over	1,100,000 -   1,200,000
	600	over	1,200,000 -   1,300,000
	650	over	1,300,000 -   1,400,000
	700	over	1,400,000 -   1,500,000
	750	over	1,500,000 -   1,600,000
	800	over	1,600,000 -   1,700,000
	850	over	1,700,000 -   1,800,000
	900	over	1,800,000 -   1,900,000
	950	over	1,900,000 -   2,000,000

3.  loan to value ratio-     ratio of the loan amount to the appraised value of the collateral shall not exceed the following rates:

Loan Amount		With Buyback	Without Buyback
over	300,000	100%	100%
over	300,000 -     750,000	100%	90%
over	750,000 -  1,000,000	95%	85%
over	1,000,000 -  2,000,000	90%	80%

     4.  capacity to pay- A member’s loan entitlement shall be limited to an amount for which the monthly repayment on principal and interest shall not exceed 40% of the member’s net disposable income; provided further that the member’s net take home pay does not fall below the minimum requirement as prescribed by the GAA or company policy

          A maximum of three (3) qualified Pag-IBIG members may be tacked into a single loan secured by the same collateral, provided they are related within the 2^nd civil degree of consanguinity or affinity.

INTEREST RATE- Pag-IBIG shall bear the following interest rates per annum:

Loan Amount	Interest Rate
up to              300,000	6.00%
over 300,000 - 750,000	7.00%
over 750,000 - 2 million	10.50%

REPRICING- for loans up to 300,000, Pag-IBIG may reprice the outstanding balance every three (3) years provided it shall not exceed the original rate.

For loans over 300,000, Pag-IBIG shall reprice the outstanding balance once every three (3) years at rates prevailing market rates which shall not exceed the following

Original Loan Amount	Interest Rate
over 300,000 - 750,000	7.00%	9.00%
over 750,000 - 2 million	10.50%	12.50%

LOAN TERM- Loan term shall be repaid at a maximum of 30 years, and shall in no case exceed the difference between the principal borrower’s present age and his 70^th birthday.

Acquired assets disposed shall have a maximum loan term of 30 years.

LOAN CHARGES- The applicant shall pay the following fees: Processing fee of Three thousand (3,000) which shall be paid as follows:
(a) P1,000 upon filing which is non-refundable;
(b) P2,000 upon loan take-out.

COLLATERAL REQUIREMENT- The loan shall be secured by collateral consisting of the same residential properties to which the loan proceeds are applied.

The property must be covered by Title (OCT/TCT/CCT) issued by the Registry of Deeds, free from all liens and encumbrances.

The real taxes on the property must be updated. Pag-IBIG shall require the borrower to submit a copy of the tax receipts not later than April 30 of the succeeding years. Failure to submit shall render the outstanding loan due and demandable.

INSURANCES- The borrower shall be compulsorily covered by the following:

1. Mortgage/Sales Redemption Insurance (MRI/SRI)- covers the risk in case of death of the principal borrower. In case of tacked loans, only the principal shall be covered by MRI/SRI. Should one or both of the co-borrowers die, the principal borrower shall continue to amortize the entire loan.
2. Fire Insurance (FI)- on the property mortgage for an amount equivalent to the appraised value of the unit or loan amount, whichever is lower.

LOAN PAYMENT- The loan shall be paid in equal monthly amortizations in such amounts as may fully cover the principal and interest and insurance premiums over the loan period. Monthly amortizations shall be paid through any modes: 
(a) salary deduction;
(b) postdated checks initially to cover the 1^st 12 monthly amortization; or
(c) auto debit arrangement with banks.

Amortization  shall include borrower’s contribution in excess of the mandatory contributions and shall be applied according to the following order of priority: penalty (if any), contributions, insurance premiums, interest, and principal.

The first monthly amortization shall due within thirty (30) days from the date of take-out or final release. However, the first monthly amortization due shall be deducted from the loan take-out proceeds.

The borrower who fails to pay the full monthly amortization and/or other obligations when due shall pay a penalty of 1/20 of 1% of the amount due for every day of delay.

DEFAULT- The borrower shall be considered  in default if he or any of his co-borrowers fail to pay any three (3) consecutive monthly amortization and/or monthly membership contributions and other obligations on the loan. In the event of default the amount due shall be due and demandable. The amount due shall constitute a lien on the Total Accumulated Value (TAV) of the member’s savings.

SECOND AVAILMENT- Pag-IBIG members who have fully paid their first housing loan shall be eligible for second availment of the Pag-IBIG housing loan

ADDITIONAL LOAN- A member who is updated with his/her monthly contribution as well as the monthly housing loan amortizations as of date of application shall be eligible for additional loan.

An eligible member shall be entitled to borrow an amount that will not exceed the difference between the member’s loan entitlement upon his application and his original loan.

For Loans taken-out prior to Nov. 23, 2006, the additional loan and the original loan shall be treated as distinct and separate.

For Loans taken-out as of  Nov. 23, 2006 and onwards, the original and additional loan shall be consolidated.

If account is secured by CTS, the account should have satisfactorily completed the 2 yrs seasoning period and has been converted to REM.

ADDITIONAL LOAN- PURPOSES

1. House construction or house improvement of a residential unit constructed on a lot purchased through a Pag-IBIG loan.
2. House improvement

Sample Amort. Factor Table per P1,000.00
Yrs	6%	7%	10.5%
5	19.33280	19.80120	21.49390
10	11.10205	11.61085	13.49350
15	8.43857	8.98828	11.05399
20	7.16431	7.75299	9.98380
25	6.44301	7.06779	9.44182
30	5.99551	6.65302	9.14739

Sample Monthly Amortization Table (Principal + Interest)
%	Amount	15	20	25	30
6	100K	843.86	716.43	644.30	599.55
6	150K	1,265.79	1,074.65	966.45	899.33
6	200K	1,687.71	1,432.86	1,288.60	1,199.10
6	250K	2,109.64	1,791.08	1,610.75	1,498.88
6	300K	2,531.57	2,149.29	1,932.90	1,798.65
6	350K	2953.50	2,507.51	2,255.05	2,098.43
6	400K	3,357.43	2,865.72	2,577.21	2,398.20
7	450K	4,044.73	3,488.86	3,180.51	2,993.86
7	500K	4,494.14	3,876.49	3,533.90	3,326.51
7	600K	5,392.97	4,651.79	4,290.68	3,991.81
7	700K	6,291.80	5,427.09	4,947.45	4,657.12
7	750K	6,741.21	5,814.74	5,300.84	4,989.77
10.5	800K	8,843.19	7,987.04	7,553.45	7,317.91
10.5	900K	9,948.59	8,985.42	8,497.64	8,232.65
10.5	1M	11,053.99	9,983.80	9,441.82	9,147.39
10.5	1.2M	13,264.79	11,980.56	11,330.18	10,973.87
10.5	1.5M	16,580.98	14,975.70	14,162.73	13,721.09
10.5	1.7M	18,791.78	16,972.46	16,051.09	15,550.57
10.5	2M	22,107.98	19,967.60	18,883.63	18,294.79
Sample Computation of Monthly Amort. (excluding insurances)
Given:
Loan Amount= P500,000; Term= 25 yrs; Interest Rate= 7%
Prin and int. = Loan Amount x factor ÷ 1000
		= P500,000 (7.06779) ÷ 1000
		= P3,533.90
Sample Monthly Amortization Table (Principal + Interest)
%	Amount	15	20	25	30
6	100K	2,109.64	1,791.08	1,610.75	1,498.88
6	150K	3,164.46	2,686.62	2,416.13	2,248.31
6	200K	4,219.28	3,582.16	3,221.51	2,997.75
6	250K	5,274.11	4,477.69	4,026.88	3,747.19
6	300K	6,328.93	5,373.23	4,832.26	4,496.63
7	350K	7,864.75	6,783.87	6,184.32	5,821.40
7	400K	8,988.28	7,752.99	7,067.79	6,653.02
7	450K	10,111.82	8,722.11	7,951.27	7,484.65
7	500K	11,235.35	9,691.24	8,834.74	8,316.28
7	600K	13,482.42	11,629.48	10,601.69	9,979.54
7	700K	15,729.49	13,567.73	12,368.64	11,642.79
7	750K	18,853.03	14,536.86	13,252.11	12,474.42
10.5	800K	22,107.98	19,967.60	18,883.63	18,294.79
10.5	900K	24,871.48	22,463.55	21,244.09	20,581.63
10.5	1M	27,634.97	24,959.50	23,604.54	22,868.48
10.5	1.2M	33,161.97	29,951.40	28,325.45	27,442.18
10.5	1.5M	41,452.46	37,439.25	35,406.81	34,302.72
10.5	1.7M	48,979.45	42,431.15	40,127.72	38,876.42
10.5	2M	55,269.95	49,918.99	47,209.09	45,736.96
Sample Table of Net Disposable Income Based on Loan Amount
Given:
Loan Amount= P450,000; Term= 30 yrs; Interest Rate= 7%
Loan Amount = Monthly Amortization ÷ 40%
		= P2,993.86 ÷ .4
		= P7,484.65

HOUSING LOAN REQUIREMENTS
Basic Requirements
ORIG	XEROX	DOCUMENTS
x		Collection Servicing Agreement w/ Authority to Deduct;
x		Preliminary Loan Counselling Questionaire (PLQC);
x		Housing Loan Application (HLA) notarized w/ ID photo;
		Members Status Verification Slip (MSVS)
	x	Transfer Certificate of Title of the Property (certified
			photo copy from Registry of Deeds)
	x	Tax Declaration (House/ Lot)
	x	Tax Receipts/ Tax Clearance
x		Zoning Certification (lot must be loc. in residential zone)
x		Location Plan/ Sketch Plan/ Subd. Plan: and
x		Vicinity Map (blue print)
			EMPLOYED:
x		Latest Pay slip/ Payroll (certified by employer);
x		Certificate of Employment & Compensation;
	x	Cert of Tax Withheld (W2 form 2316);
	x	BIR TIN card/ TIN Verification;
x		Proof of Billing Address
			SELF- EMPLOYED:
	x	Income Tax Return (1 yr), w/ BIR receipts;
	x	Audited Financial Statement;
	x	Business Permit and Registration;
	x	BIR TIN card/ TIN Verification;
x		Proof of Billing Address

			Pag-IBIG OVERSEAS PROGRAM
	x	Valid Employment Contract; or **
	x	Employer's Certificate of Income **
x		Special Power of Attorney (certified by Phil Embassy or
			Consulate in the country where member is staying)
Additional Requirements depending on Loan Purpose
ORIG	XEROX	DOCUMENTS
LOT PURCHASE
x		Contract to Sell/ Purchase Agreement
HOUSE CONSTRUCTION and HOUSE IMPROVEMENT
x		Detailed Specification signed by the Civil Engr/Architect
x		Bill of materials signed by the Civil Engr/Architect
	x	Building, Electrical and Sanitary Permit
x		Approved Building Plans signed by the
			borrower (blue print)
REFINANCING of an EXISTING LOAN
x		Bldg. Plans/ Floor Plan (blue print- if w/ unit)
x		House Pictures (all sides and interior- if w/ unit)
	x	Statement of Account, Ledger showing perfect
			repayment for two (2 years) and Loan Mortgage
			Agreement
PURCHASE of a RESIDENTIAL UNIT (New)
x		Contract to Sell/ Purchase Agreement
x		Detailed Specifications signed by the Civil Engr/
			Architect
x		Bill of materials signed by the Civil Engr/Architect
	x	Building, Electrical and Sanitary Permit
x		Approved Bldg. Plans signed by the borrower (blue print)
x		House Pictures (all sides and interior- if w/ unit)
PURCHASE of a RESIDENTIAL UNIT (Old/ Existing)
x		Contract to Sell/ Purchase Agreement
x		Bldg. Plans/ Floor Plan (blue print- if w/ unit)
x		House Pictures (all sides and interior- if w/ unit)
LOT PURCHASE and HOUSE CONSTRUCTION
		comply the requirements for lot purchase and for house
			construction
Note:
1	Loan documents shall be arranged from top to bottom
2	complete set of requirements should be fastened in a folder
3	Pag-IBIG reserves the right to required additional documents
		to facilitate loan evaulation process