Saturday, March 21, 2009

Socialized Housing Loan Amount Adjustment

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).

Its implementation is retroactive January 2009.

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;
  1. 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:
  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 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
  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




Disclaimer

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.