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Steps in Pag-Ibig Housing Loan Application

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Here are the steps in applying for a housing loan tru Pag-Ibig.. and I was not paid by Vice-President Noli De Castro to post this. I attended an hour or so seminar in Atrium Makati just to find out what are the requirements in order to avail the Pag Ibig housing loan that every PagIbig member is entitled.

I thought I was the first one who will blog about this but I’m not. I did a quick search and found several PagIbig post. Perusing some of them, I notice that some of the information are obsolete. According to the lady speaker herself, the seminar (which is one of the requirement) is valid for 6 months and after that, the member who wish to avail the loan must attend another orientation since there could be new or updated information by then.

Anyway, here are the “Easy Steps in Housing Loan Application” ‘stolen’ directly from the handouts that PagIbig gave away.. with a little addons.

Easy Steps in Housing Loan Application

1. Attend a Housing Loan Counseling session at any PagIbig office.. in my case, I was in Atrium Makati. Accomplish a Preliminary Loan Questionnaire (to be given), Housing Loan Application (HLA, will also be provided) and a Membership Status Verification Slip (MSVS.. and yes, ibibigay din dun). If eligible, you will be given a checklist of requirements.
2. Submit HLA with complete requirements. You’ll be paying a processing fee of Php1,000.. non-refundable, sorry.
3. Receive Notice of Approval/Letter of Guaranty and sign loan documents.
4. Proceed to BIR and present Deed of Absolute Sale (DOAS) and other necessary documents such as tax declaration, tax receipts etc for payment of capital gains tax and documentary stamps and secure Certificate Authorizing Registration (CAR)
5. Proceed to Notary Public for notarization of Loan Mortgage Agreement (LMA)
6. Proceed to the Local Government Unit for payment of transfer tax and Registry of Deeds for the transfer of title and annotation of mortgage.
7. Secure occupancy permit from the Local Government Unit Engineering Office for Purchase of new Residential Unit, Purchase  of Lot and Construction of a new Residential Unit and Construction of house loan purposes.
8. Proceed to Assessor’s Office to secure new tax declaration for the house in the name of the applicant.
9. Submit the following documents to concerned Pagibig office:
   • Original Transfer Certificate of Title in the name of the applicant with annotated mortgage
   • DOAS with original RD stamp
   • New Tax Declaration in the name of the applicant
   • Occupancy Permit
   • Assignment of Loan Proceeds, Loan and Mortgage Agreement and Promissory Notes
10. Receive Loan Proceeds
11. Start Paying monthly amortization based on schedule date.

There you go… also the maximum loanable amount is 3Million Pesos and not 2M (read it somewhere and that’s what I was saying about updated info).

Also there are four (4) factors that Pag Ibig is using in determining the maximum amount that a member may take out as a loan.

The fund decides based on the “lowest” from among four factors:

• Member’s Contribution – The table below shows the schedule of contributions and the corresponding loanable amounts. POP in the first column means Pag-ibig Overseas Program and the amounts in column 2 under the heading Pag-ibig I and II as well as in the third column under loan amount are in Philippine peso.
  The photo above was ‘borrowed’ (without permission here) Like I mentioned before, the maximum loanable amount is now 3 million, so the table about is now incomplete. Here the rest of the info:
  • 1,000 for Over 2M – 2.1M
  • 1,050 for Over 2.1M – 2.2M
  • 1,100 for Over 2.2M – 2.3M
  • etc… etc. etc.. :)
  • 1,450 for Over 2.9M – 3M

• Loan-to-Collateral Ratio -
• Actual Need – In my case, since I already own a lot, Pag Ibig will be basing the amount in the ‘bills of material’ or the estimated cost of the construction of the house.
• Capacity to Pay – Pag Ibig will be basing the amount on the member’s capacity to pay. That is, salary or any other source of income will be considered. It requires that the monthly amortization of the member on his or her loan must not be more than 40 percent of his or her net disposable income.For house construction, the release of loan will be staggered. The first 30% will be issued first and the rest can be requested after the representative of Pag Ibig assess the construction of the house. They will check the progress of it to know if the amount loan was actually being spent on the project.Payment of the monthly amortization starts a month after the full or final release of the loan. So in the case of house construction, the monthly amortization will start after the full amount has been released.

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