Revised Housing Loan Guidelines

Pag-IBIG HOUSING LOAN PRIMER

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 & has remitted 24 monthly contributions
2. not more than 65 yrs old at loan application, must insurable, & 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 & 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

U$ 5          200           up to          500,000

                250           over            500,000 -      600,000

                300           over            600,000 -      700,000

                350           over            700,000 -      800,000

                400           over            800,000 -      900,000

                450           over            900,000 -   1,000,000

                500           over         1,000,000 -   1,100,000

                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

                1,950        over         2,000,000 -   2,100,000

                1,050        over         2,100,000 -   2,200,000

                1,100        over         2,200,000 -   2,300,000

                1,150        over         2,300,000 -   2,400,000

                1,200        over         2,400,000 -   2,500,000

                1,250        over         2,500,000 -   2,600,000

                1,300        over         2,600,000 -   2,700,000

                1,350        over         2,700,000 -   2,800,000

                1,400        over         2,800,000 -   2,900,000

                1,450        over         2,900,000 -   3,000,000

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

the following rates:

           

                                                       With           Without

    Loan Amount                             Buyback    Buyback

Upto           400,000                         100%          100%

over            400,000 -     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 & 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              400,000          6.00%

over 300,000 - 750,000          7.00%

over 750,000 - 1 million        8.50%

over 1.0 M – 1.25 M              9.50%

over 1.25 M – 2.0 M            10.50%

over 2.0 M – 3.0 M             11.50%

REPRICING- for loans up to P 400,000, 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 400,000 - 750,000          7.0%         9%

over 750,000 – 1.0 M            8.5%       10.5%

over 1.0 M – 1.25 M              9.5%       11.5%

over 1.25 M - 2 million       10.5%       12.5%

over 2.0 M - 3.0 M              11.5%       13.5%

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 & 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, (3) 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 & his original loan.

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

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

If account is secured by CTS, the account should have satisfactorily completed the 2 yrs seasoning period & 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