PAG IBIG POLICIES AND GUIDELINES
Definition of Terms:
HDMF - Home development mutual fund, otherwise known as Pag-ibig
POP - Pag-ibig Overseas Program
CTS - Contract to Sell
REM - Real Estate Mortgage
CSA - Collection Service Agreement
OCT - Original Certificate of Title
CCT - Condominium Certificate of Title
PDC - Post Dated Checks
Buy Back Guaranty - A guaranty given by a Developer to HDMF that in case the borrower is in default of payment, the former buys it back from the latter. In exchange of this guaranty, HDMF offers higher loan amount allowing buyers to produce less equity and makes the property more affordable.
1. LOAN PURPOSE
1.1 Purchase of a fully developed lot not exceeding 1,000 square meters which should be within a residential area.
1.2 Purchase of lot and construction of a residential unit thereon.
1.3 Purchase of a residential house and lot, or condominium unit inclusive of parking slot, which may be old or brand new.
2. BORROWER ELIGIBILITY
2.1 Must be a member for at least 24 months as evidenced by the remittance of at least 24 monthly contributions at the time of loan application.
2.2 A new member shall be allowed to make a lump sum payment of 24 months to avail of housing loan.
2.3 Not more than 70 years old at loan maturity and must be insurable.
2.4 Has the capacity to acquire and encumber real property
2.5 Has passed satisfactory background/credit check by the Developer and HDMF
2.6 Has no outstanding Pag-ibig housing loan, either as a principal or co-borrower
2.7 Has no outstanding multi-purpose loan in arrears at the time of loan application.
3. LOAN AMOUNT
A qualified Pag-ibig member shall be allowed to borrow up to a maximum of P 3,000,000.00 pesos which shall be based on the lowest of the following:
(1) The member’s actual need
(2) His loan entitlement
(3) Loan-to-collateral ratio
3.1 Loan entitlement based on contribution: For every P200.00 a member is entitled to P 500,000.00 loan amount. For example, a member has a monthly contribution of P450.00 he is entitled to P 1,000,000.00 maximum loanable amount; and for P 1,450.00 contribution, he is entitled to P3,000,000.00 maximum loanable amount.
POP contributions made in foreign currency shall be converted to its peso equivalent on the date when payment was made, rounded off to the nearest dollar.
For loans up to P500,000.00 which shall be secured by a first real estate mortgage or contract to sell on the property which is bought from a developer and are covered by a buy back guarantee, the member’s loan entitlement shall be based solely on his Pag-ibig contributions.
3.2 Loan entitlement based on capacity to pay:
A member’s loan entitlement shall be limited to an amount for which the
monthly amortization shall not exceed 40% of the member’s net disposable
income as supported by:
a) Latest income tax return (ITR) for the year immediately preceding the date of loan application with attached W2 form, stamped received by the BIR.
b) Certificate of Employment and Compensation (CEC) or pay slip where applicable. The net disposable income shall be the gross family income less statutory deductions and monthly amortizations on outstanding obligations.
3.3 Loan to Collateral ratio
6. LOAN PAYMENT
6.1 The loan shall be paid in equal monthly amortizations in such amounts as may fully cover the principal and interest as well as insurance premiums over the loan period and shall be made whenever feasible, through salary deduction.
(a) The borrower shall execute authority to deduct the monthly loan amortizations from his salary and shall secure the conforme of his employer for the purpose.
(b) HDMF and the employer shall enter into a collection agreement stipulating among others, that the deduction for the employee’s Pag-ibig housing loan shall have priority over other obligations of the same nature after all statutory deductions have been effected.
6.2 The monthly amortization shall include the borrower’s Pag-ibig contributions in excess of the mandatory contributions as provided in 3.1
6.3 The first monthly amortization shall be deducted from the loan take out proceeds and succeeding monthly amortization shall commence on the month immediately following loan take out and shall be paid on that day of the month thereafter.
6.4 The monthly amortizations shall be paid to HDMF through any of the following modes:
(1) Accounts covered by a buy back guarantee:
a) Over the counter
b) If the developer has CSA with HDMF, payments shall be remitted to the Developer.
c) Salary deduction
d) Issuance of PDC initially to cover the 12 monthly amortizations. The Developer with CSA with HDMF shall safe keep the PDC’s, otherwise these PDC’s shall be in the possession of HDMF.
e) Auto debit arrangement with banks.
(2) Accounts not covered by buy back guarantee:
a) Salary deduction
b) Issuance of post dated checks initially to cover the 12 monthly amortizations
c) Auto debit arrangement with banks
9. DEFAULT
The borrower shall be considered in default when he or any of his co-borrowers fails to pay any three consecutive monthly amortizations and or monthly membership contributions and other obligations on the loan
9.1 For loans secured by Contract to Sell (CTS)
(a) Cancellation of CTS
(b) Call against the warranty of the developer to buy back the defaulting account.
9.2 For loans secured by REM
The outstanding loan together with accrued interest, penalties, fees and other charges shall be due and demandable, and shall constitute a lien on the Total Accumulated Value (TAV) of the member’s savings with HDMF.
10. LOAN CHARGES
The borrower shall pay the following fees and charges to HDMF.
P 1,000.00 upon filing of application which shall be non-refundable if the loan is disapproved. Then P 2,000.00 upon loan takeout. Other expenses such as appraisal fees, notarial, documentation fees, as well as taxes pertinent to the sale and transfer of the property to the borrower.
11. SECOND AVAILMENT
A Pag-ibig member may avail himself of a second Pag-ibig housing loan provided he has fully paid his first housing loan, whether as a principal borrower or as a co-borrower.
12. ADDITIONAL LOANS
A qualified Pag-ibig member who has an existing housing loan may avail himself of an additional housing loan for the following purposes:
(a) house construction or improvement of a house constructed on a lot purchased through a Pag-ibig loan; or
(b) home improvement
FOR MORE INFORMATION, PLEASE CALL/ TEXT:
(+63)922-466-1409 - Sun Cell
(+63)905-234-5526 - Globe Cell
(+6332)511-1481 – Landline Mobile
