PAG IBIG Fund Housing Loan Computation : How to Avail It and How Much You Can Get

Even OFWs can avail a housing loan from PAG-IBIG. [Image Credit: Rappler]
Even OFWs can avail a housing loan from PAG-IBIG. [Image Credit: Rappler]

A lot of Filipinos rely on PAG-IBIG to help them in building a permanent home. Just like other lending and loaning institutions, there are requirements needed to comply with to guarantee that the members do not default when it comes to their monthly amortization.

But how would you know if how much you are entitled to?

Pag Ibig Fund Housing Loan Computation

Generally, a member can get a housing loan from PAG-IBIG from PHP 100,000 to 3,000,000. The total loan amount of each member is entitled to depend on two factors:

The first one is the monthly contribution that you can comfortably pay to PAG-IBIG. The second factor is your net disposable income. To determine your capacity to pay the monthly amortization, PAG-IBIG will review these conditions.

PAG IBIG Fund Housing Loan Computation
[Image Credit: Foreclosure Philippines]

Capacity to Pay the Loan

Each member is entitled to based on their monthly contributions. A monthly contribution of PHP 200 will let a member loan up to PHP 500,000 while a member contributing PHP 400 will allow a PAG IBIG fund housing loan computation of PHP 900,000 to 1,000,000. A monthly contribution of PHP 950 a month will allow them PHP 1,900,000 to 2,000,000.

If you are a POP or OFW member, you need to convert the figures from US Dollars to Philippine Peso.

As a rule, members are entitled to a loan with a monthly amortization amounting of up to 40% of the net disposable income. The total loan plus interest per year by the total number of years you plan to pay the full amount. Divide the loan amount by the year and then factor in the interest rate per year. Get 40% of your net disposable income.

How To Be Entitled

The first two requirements are the monthly contributions and the net disposable income. To be entitled, you need to be a PAG-IBIG member for at least 24 months. If you are an OFW, you need to have remitted at least 24 monthly contributions.

You should also have no outstanding housing loan from PAG-IBIG or you don’t have any PAG-IBIG loan that was canceled, foreclosed, bought back by PAG-IBIG or made into a nation in payment. Members should have no multipurpose loans in arrears upon application. The age limit for applicants is 65 years old at the time of the application.

DOCUMENTS REQUIRED UPON LOAN APPLICATION

A. Documentary Requirements

  1. Housing Loan Application with recent ID photos of borrower
  2. Membership Status Verification Slip
  3. Proof of Income
    3.1 For Locally Employed, any of the following:

    1. Notarized Certificate of Employment and Compensation (Pag-IBIG format)
    2. Notarized Certificate of Employment and Compensation (Employer’s format) and latest one (1) month payslip
    3. Income Tax Return/Certificate of Tax Withheld (BIR Form No. 2316) and latest one (1) month payslip

    3.2 For Self-Employed/Other Sources of Income

    1. ITR, Audited Financial Statements and Official Receipt of tax payment from bank supported with DTI Registration and Mayor’s Permit/Business Permit
    2. Commission Vouchers reflecting the issuer’s name and contact details (for the last 12 months)
    3. Bank Statements or passbook for the last 12 months (in case income is sourced from foreign remittances, pensions, etc.)
    4. Copy of Lease Contract and Tax Declaration (if income is derived from rental payments)
    5. Certified True Copy of Transport Franchise issued by appropriate government agency (LGU for tricycles, LTFRB for other Public Utility Vehicle or PUVs)
    6. Certificate of Engagement issued by owner of business
    7. Other document that would validate source of income

    3.3 For Overseas Filipino Workers (OFWs), any of the following:

    1. Employment Contract (with English translation if in foreign language)
    2. Original Employer’s Certificate of Income (with English translation if in foreign language). If document submitted is photocopy, it shall be duly validated and certified/initialed by HDMF Information Officer assigned in the country where the member works
    3. Other Proofs of Income, whether original or photocopy, shall be duly validated and certified/initialed by HDMF Information Officer assigned in the country where the member works
  4. Photocopy (back-to-back) of one (1) valid ID of Principal Borrower and Spouse, Co-Borrower and Spouse, and Attorney-In-Fact, if applicable. The same ID must be presented during the conduct of borrower’s validation.
  5.  Authorization to Conduct/Credit Background Investigation
  6. For OFW members, Special Power of Attorney 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, if abroad
  7. Insurance Coverage
    1. Health Statement Form (Medical Questionnaire)
      • OFW members over 60 years old
      • Loans over P2.0 M to P3.0 M and for borrowers aged up to 60 years old
    2. Health Statement Form (Medical Questionnaire) and Full Medical Examination
      • Borrowers over 60 years old
  8. Marriage Contract (For all married borrower/s, co-borrower/s, spouse, family member/s included on the computation of aggregate income)
  9. Birth Certificate or any proof of relationship, if with co-borrower/s or family member/s included on the computation of aggregate income

The Pro-forma Health Statement Form (Medical Questionnaire) is available at the Members Services Support Division-Servicing Department for NCR or at any Pag-IBIG Regional Branch or downloadable from the Pag-IBIG website, www.pagibigfund.gov.ph.

B. Technical Requirements

  1. Certified true copy of TCT/CCT by the Registry of Deeds (latest title)
  2. Location Plan and Vicinity Map
  3. Photocopy of Tax Declaration and Real Estate Tax Receipt

Additional Requirements Depending on the Loan Purpose 

For Purchase of Residential Unit, Purchase of Lot and Construction of House, Purchase of Lot

  1. Contract to Sell or similar agreement between the buyer and the seller

For Refinancing

  1. Statement of Account on outstanding loan balance, indicating loan purpose
  2. Any of the following documents:
    • Official Receipt for the past 12 months
    • Subsidiary Ledger
    • Any valid proof of payment for the past 12 months

For Purchase of Lot and Construction of House, Construction of House, Home Improvement

  1. Building Plans, Specification and Bill of Materials duly signed by the Licensed Civil Engineer or Architect.

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