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PAG-IBIG HOUSING LOAN REQUIREMENTS 

 
So you’ve finally decided to invest in real property using Pag-IBIG Housing Loan? You figured that it’s about time that you apply for that Pag-IBIG Loan after those years of faithful contributions to the Pag-IBIG Fund. Now you ask yourself: “What are the requirements to avail of Pag-IBIG Housing Loan?” There are standard requirements asked from the applicant upon Loan Application and prior to Loan Approval. Additional requirements will also be asked from the applicant when deemed necessary by Pag-IBIG.
 
Documents required upon Loan Application:
  • Housing Loan Application (HLA) notarized with ID photo – original copy;
  • Approved Membership Status Verification Slip (MSVS) – original copy;
  • Certified true copy of Transfer Certificate Title (TCT) of the property by the Registry of Deeds (latest title);
  • Photocopy of updated Tax Declaration;
  • Location plan and Vicinity map.

For Employed Pag-IBIG Members:

  • Notarized Certificate of Employment and Compensation (Pag-IBIG Format);
  • Notarized Certificate of Employment and Compensation (Employer’s Format) and one month latest Pay Slip;
  • Income Tax Return/Certificate of Tax Withheld (W2 – Form 2316) and one month latest Pay Slip.

For Self-Employed Pag-IBIG Member:

  • Income Tax return (one year) with Audited Financial Statements and Official Receipt of tax payment from Bank;
  • DTI Registration;
  • Business or Mayor’s Permit.

For Pag-IBIG Overseas Program (POP):

  • Employment Contract or Employer’s Certificate of Income, duly certified by the employer (with English translation if in foreign language) or other valid Proof of Income;
  • Special Power of Attorney (SPA) notarized prior to date of departure or duly certified and authenticated by the Philippine Embassy or Consulate in the country where the member is staying, for members abroad.
Additional Requirements:
Depending on the purpose of your housing loan, Pag-IBIG may ask that you submit the following upon Loan Application.


Purchase of Lot or Purchase of Residential Unit:

  • Contract to Sell/Purchase Agreement – original copy.

House Construction or Home Improvement:

  • Building Plans, Specifications and Bill of Materials duly signed by the Licensed Civil Engineer or Architect;
  • Real Estate Tax Receipt.

Refinancing of an Existing Loan:

  • Statement of Account on the outstanding balance and also indicating the purpose of the loan;
  • Any of the following documents:
    • Official Receipt for the past twelve months;
    • Subsidiary Ledger;
    • Any proof of payment for the past twelve months.

Lot Purchase and House Construction:

  • Comply the requirements for lot purchase and for lot construction.

Note: Pag-IBIG Fund reserves the right to require additional requirements to facilitate the loan evaluation process.

Documents required prior to Loan Release (upon approval):
  • TCT in the name of the borrower with proper mortgage annotation in favor of Pag-IBIG Fund (Owner’s Copy);
  • Certified true copy of TCT in the name of the borrower with proper mortgage annotation in favor of Pag-IBIG Fund (RD’s copy);
  • Photocopy of New Tax Declaration in the name of the Borrower and Updated Tax Receipt
  • Proof of Billing;
  • Loan Mortgage Documents:
    • Loan and Mortgage Agreement with original RD stamp;
    • Notarized Promissory Note;
    • Disclosure Statement on Loan Transaction.
  • For Employed:
    • Collection Servicing Agreement with Authority to Deduct Loan Amortization or Post – Dated Checks;
  • For Self – Employed:
    • Post – Dated Checks
Additional Documents Prior to Loan Release depending on Loan Purpose

Purchase of Lot or Purchase of Residential Unit

  • Deed of Absolute Sale with original RD stamp.

House Construction or Home Improvement

  • Building, Electrical, and Sanitary Permits duly approved by the building officials;
  • Occupancy Permit.

  
 
Yes, that’s a wrong question and later I will explain why. The main purpose of this article is simply to tell you not to ask that question from now on, because it’s a wrong question. Enough of that question. Period.
 
The Right Answer To The Wrong Question:
We have received that kind of question several times and the answer has already been put at the FAQ Page of this website. You can go visit that page if you don’t want to read a lengthy explanation. But since you are already here, heck, let’s answer that. Maybe someone already told you that you can pay the whole 24 months upon membership and right there and then apply for a housing loan. That used to be possible. But the management of Pag-IBIG Fund found out that it’s been abused many times with some members doing it just for the sake of getting a loan. And so they fixed the loophole. A new rule was implemented and it is not anymore allowed do it. In other words, if you are a new Pag-IBIG Member, you really have to be actively contributing for a period of 24 months before you can begin applying for a housing loan.

So Why Is It A Wrong Question?
The very question itself shows that the person asking is in desperate need of a loan. Unfortunately, just because you are desperate need of a loan doesn’t mean you will get the money. As a matter of fact, the odds are against you if you display such a behavior. It’s a wrong question because:
1). Pag-IBIG Fund Doesn’t Care If You Need A Loan.
2). Pag-IBIG Fund Doesn’t Know You Yet.
3). Pag-IBIG Fund Can’t Tell If You Have The Means To Pay For The Loan.

Okay, let’s tackle it one by one.

Reason #1: Pag-IBIG Fund Doesn’t Care If You Need A Loan.
One of the erroneous notions Pag-IBIG Members have is thinking that they are entitled to a loan. Unfornately, no. Just because you are a member of the Pag-IBIG Fund doesn’t mean you can apply for a loan any time and get the proceeds too.

Reason #2: Pag-IBIG Fund Doesn’t Know You Yet.
Most people who are asking such question are either not yet members or new Pag-IBIG Members. That means, these people have no proven records yet at Pag-IBIG. They are like strangers asking for a loan. They could be here now and gone the next day, who knows? As a member, it is to your advantage if you maintain a clean, active and impressive record with Pag-IBIG Fund before you even attempt to apply for a loan. See to it that your records are updated and your contributions are up-to-date.

Reason #3: Pag-IBIG Fund Can’t Tell If You Have The Means To Pay For The Loan.
Think about it. When you get loan, you are most likely to benefit from it and Pag-IBIG is taking a risk in granting you the loan. So to lessen the chances of making a mistake in granting the loan, and therefore losing money, Pag-IBIG has to make sure that they are giving it to the right guy — the one who has the means of paying the loan. One of the ways Pag-IBIG checks for you are capable of paying the loan is by checking on your employment records such as employment history, contract of employment, salary, etc. So, before applying for a loan, see to it that your finances are in the right order. 


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