Your Easy Guide for Applying for a Pag-IBIG Housing Loan

After a very challenging house-hunting, you have finally found the perfect home for you and your family. It is now time for you to take it to the next level by applying for a housing loan.

There are plenty of banks and financial institutions that offer to finance your home purchase. But if you are looking for a flexible-term, long-tenor housing loan, then look no further than the government’s own provident fund Pag-IBIG Fund, or more formally known as the Home Mutual Development Fund (HMDF).

A Pag-IBIG Housing Loan is ideal for average-income Filipino borrowers as it offers longer loan tenor (up to 30 years), more than one member can apply for a loan for the same property, and salaried members up to 65 years of age can apply.

For the downloadable checklist of requirements and forms, head to the Pag-IBIG website at www.pagibigfund.gov.ph/dlforms.aspx

In this article, we provide a step-by-step guide in applying for a Pag-IBIG Housing Loan.

1. Meet with the requirements

First thing is to check your eligibility. According to Pag-IBIG, either the principal borrower or co-borrower should not have any outstanding Pag-IBIG multipurpose loan or housing loan at the time of application and has no Pag-IBIG housing loan that was foreclosed, canceled, or even bought back due to default.

The borrower should also have remitted at least 24 months’ or two years’ worth of Pag-IBIG Fund contributions, and should not be over 65 years old at the time of application and 70 years old at loan maturity. The maximum loanable amount is Php6 million, while the maximum loan tenor 30 years.

2. Prepare the required documents

The borrower should secure documents needed in order for the application to go smoothly. Accomplish a Pag-IBIG Housing Loan Application (HLA) and attach a one-by-one ID picture. To be safe, have at least two photocopies of your duly accomplished form ready.

In addition, you also need a back-to-back photocopy of a valid ID; certified true copy of Transfer Certificate of Title (TCT) and Condominium Certificate of Title (CCT); latest tax declaration and real estate tax receipt; contract-to-sell (CTS) between the buyer and seller; location, vicinity, sketch map of the property; and borrower’s proof of income, which is any of the following:

Notarized certificate of employment and compensation (CEC) showing gross monthly income, monthly allowances, or monthly monetary benefits
Latest income tax return (ITR) or BIR 2316 for the year immediately preceding the date of loan application
One month pay-slip within the last three months prior to the date of the loan application

For self-employed members, any of the following can be submitted as proof of income:

ITR or audited financial statements and official receipt of tax payment from bank supported with DTI Registration and mayor’s permit/business permit
Commission Vouchers reflecting the issuer’s name and contact details (for the last 12 months)
Bank statements or passbook for the last 12 months
Copy of lease contract and tax declaration (if income is derived from rental payments)
Certified true copy of transport franchise issued by an appropriate government agency (LGU for tricycles and LTFRB for other PUVs)
Certificate of engagement issued by the owner of the business
Other documents that would validate the source of income

For overseas Filipino workers (OFW), the following can be submitted:

Employment contract
Certificate of employment and compensation (CEC)
ITR filed in the host country/government

Note that if any of these documents are in foreign languages, an English translation is required.

3. Submission of documents

Submit a duly accomplished HLA together with requirements and pay a non-refundable processing fee of Php1,000 to any Pag-IBIG Fund office. Visit pagibigfund.gov.ph to check the Pag-IBIG Fund’s branches across the Philippines.

4. Wait for your Notice of Approval (NOA) from Pag-IBIG

The Notice of Approval (NOA) will be released to the borrower(s) or in the case of an OFW, his or her attorney-in-fact. After signing your loan documents, you have 90 days to accomplish and submit all your NOA requirements, which include the following:

Payment of capital gains tax and documentary stamps at the Bureau of Internal Revenue
Payment of transfer tax and transfer of tax declaration at the local government unit
Transfer of the title and annotation of mortgage at the Registry of Deeds

5. Claim your loan proceeds

To claim your loan proceeds from Pag-IBIG, you need to present two valid IDs and bring the following:

TCT/CCT in the name of the borrower or co-borrowers with mortgage annotation
Updated tax declaration and real estate tax receipt in the name of the borrower and co-borrowers
Deed of absolute sale with stamp from the Registry of Deeds
Occupancy permit from the LGU Engineering Office (if applicable)
Assignment of loan proceeds

6. Start your monthly amortization payments

By Jonas Carlo Lirac