Pag-IBIG FUND ACQUIRED HOUSING UNITS, BIG DISCOUNT SALE, REDUCED INTEREST RATES, HOW TO AVAIL HOUSING LOAN, AFFORDABLE MONTHLY AMORTIZATION, CONSTRUCTION OF RESIDENTIAL UNITS, LOT PURCHASE, HOME IMPROVEMENTS, REFINANCING, PURCHASE OF RESIDENTIAL UNIT, HOW TO BE A Pag-IBIG FUND MEMBER
Good news to all would-be borrowers who have not yet availed of the Pag-IBIG's housing loan program or whose loan application has not been taken-out/ approved yet. A new development came out in response to the global economic crisis.
The socialized housing loan amount per advertised by VP Noli de Castro (P300,000 loan amount at 6% p.a. for 30 years maximum loan term, P1,800.00 monthly amortization) has been adjusted to P400,000.00. Which means the amortization range from loans more than P300,000.00 to P400,000.00 will have to lower (versus the former amortization rates).
HOUSING LOAN PURPOSE- The Pag-IBIG housing loan may be used to finance any one of the ff:
LOT PURCHASE- purchase of a fully developed residential lot not exceeding 1000 sqm.
CONSTRUCTION of a RESIDENTIAL UNIT (CRU)- construction or completion of residential unit on a lot owned by the member.
PURCHASE of a RESIDENTIAL UNIT (PRU)
brand new
old/ existing
properties mortgaged with Pag-IBIG Fund
acquired assets disposed of through sealed public bidding, negotiated sale
LOT PURCHASE and (subsequent) HOUSE CONSTRUCTION
HOUSE IMPROVEMENT (HI)- any alteration in an existing unit to be a permanent integral part thereof which will enhance its durability and material value
REFINANCING of EXISTING MORTGAGE LOAN (RF)- not in default within 12 months prior to application, loan repayment history for at least 2 years
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:
a Pag-IBIG member for at least 24 months and has remitted 24 monthly contributions;
not more than 65 yrs old at loan application, must insurable, and not more than 70 yrs old at the date of loan maturity;
has no outstanding Pag-IBIG housing loan either as principal or as co-borrower;
has the legal capacity to acquire and encumber real property;
has passed satisfactory background/ credit and employment/ business checks;
has no outstanding Pag-IBIG Multi-Purpose Loan in arrears at the time of application;
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:
actual need or selling price;
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 2nd 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 70th 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:
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.
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 1st 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
House construction or house improvement of a residential unit constructed on a lot purchased through a Pag-IBIG loan.
The purpose of this blog is to inform the viewer of the programs of Pag-IBIG as well as the services the Fund extends. Blog topics may or may not be updated subsequent to their initial posting.
Specifications on the properties featured on the Acquired Assets list particularly the status, and details should be verified directly with the Acquired Assets Unit located at the 2/F of Pryce Tower Condo., Pryce Business Park, JPLaurel Ave., Bajada, Davao City or they may be reached thru 224 4733.
Views featured specifically in the "Comment Page" are those of mine and not of the Fund.
