Buying a house for sale is not something that everyone can do at the drop of a hat. Aside from the fact that owning a house is a big decision that needs a lot of thought, it also requires money that may not be readily available to everyone. Luckily, there are a lot of loaning options for people who want to have their own home, such as the Pag-IBIG Housing Loan.

The Pag-IBIG  Housing Loan aims to help its members:

A.      Purchase a fully developed, 1,000 square-meter-or-less lot within a residential area

B.      Purchase a house and lot, condo unit or townhouse with a parking slot (they can either be old or new, a property mortgaged with Pag-IBIG or an acquired asset)

C.      Pay for the construction of a residential house and lot owned by the member

D.      Finance the improvement of a member’s existing home

E.       Refinance their mortgage, as long as the loan is not in default within a year before the application date, and that the loan has a repayment history of at least 2 years with the original mortgagee

F.       Pay for a combination of A and C, B and D, E and D, or the refinancing of a lot loan bought for the construction of a residential unit.

There are three ways in which a member can apply for a Pag-IBIG Housing Loan:

·         The member can be assisted by the developer, who will offer a buyback guaranty in the event that the member defaults in his amortization payments or his monthly contributions.

·         The developer will help the member through the process, but will offer no buyback guaranty.

·         The member will apply for a housing loan on his own.

To be eligible for a Pag-IBIG Housing Loan, a person should:

·         Be a member of the Pag-IBIG I or II, or the Pag-IBIG Overseas Program (POP) for 24 consecutive months, as indicate by at least 24 monthly contributions at the time of the loan application (A member who lacks the required number of contributions can pay a lump sum according to the mandatory monthly membership contribution rates.)

·         Be 65 years old and below at the date of the application and should be insurable, and should also not be over 70 years old at loan maturity

·         Have the legal capacity to acquire and encumber real property

·         Have passed the Pag-IBIG Fund’s background/credit  and employment/business checks

·         Have no outstanding housing loan from Pag-IBIG, whether as a principal borrower or a co-borrower

·         Have no housing loan from Pag-IBIG that has been cancelled, foreclosed, subjected to dacion en pago, or bought back due to default

·         Have no outstanding Pag-IBIG multi-purpose loan in arrears at the time of application

Part II of this series will discuss the procedures for applying for a Pag-IBIG Housing Loan.

Jillian Cariola, Writer