Yes, You Can Be a Homeowner: A Who, What and How Guide to the Pag-IBIG Housing Loan
Many families choose to rent rather than purchase their homes, fearing monthly amortizations and their consequences. By educating yourself on your options, you may find that owning your home is actually possible.
Why rent when you can own a house? The Pag-IBIG Housing Loan offers affordable payment terms and interest rates that its members can avail of when buying or building a home. Here's a quick guide on who can avail, what the requirements are and how one applies for a Pag-IBIG Housing Loan.
All members of Pag-IBIG may take out a housing loan, provided that you fulfill certain requirements. You can refer to the list of Pag-IBIG Housing Loan eligibility requirements on their website (here).
You may use your approved Pag-IBIG Housing Loan to purchase a residential lot, a house and lot, condominium unit, or townhouse. You can also use this to fund the construction of your home or make improvements to an existing home. The loan can also be used to refinance a mortgage. Full details on what you are allowed to use your Pag-IBIG Housing Loan for are also found on their website (here).
Here is a step-by-step guide that you can follow when you apply for a Pag-IBIG Housing Loan.
Step 1: Visit the Pag-IBIG NCR or Regional Branch closest to you. Request for a Membership Status Verification Slip, fill this out and submit. You will then be given a complete list of requirements and the necessary application forms. You can also find these online at the Pag-IBIG website.
Step 2: Submit all of the accomplished forms together with the required supporting documents at the Pag-IBIG NCR or Regional Branch with jurisdictional territory over the property that you are purchasing. Applications with incomplete documents will be returned with an attached list of items for completion.
At this point, you will need to pay a processing fee amounting to Php1000. The processing period for your documents is 15 working days. After the processing period, you should receive a call to inform you if your Pag-IBIG Housing Loan application has been approved. When your application is approved, return to the Pag-IBIG branch where the loan was processed.
Step 3: At the branch, you will need to fill out and sign these forms:
- Notice of Approval
- Letter of Guaranty
- Disclosure Statement on Loan Transaction
- Promissory Note
- Loan and Mortgage Agreement
Note that if your application was disapproved, you should be given a Notice of Disapproval.
Step 4: Have the Loan and Mortgage Agreement and the Promissory Note notarized. You then have 90 days to complete the requirements stated in your Notice of Approval. These requirements will vary based on what you will be using your loan for.
Step 5: Submit your complete Notice of Approval Requirements to the Pag-IBIG branch processing your application, then wait five working days for the processing of your loan.
Step 6: Once processing is complete, you can pick up the check from your Pag-IBIG branch. Remember to bring 2 valid IDs and post-dated checks to cover the first year amortization payments.
In case payment is to be made through salary deduction, you need to present an Authority to Deduct form, which has been duly received by the Billing and Collections Department of your Pag-IBIG branch. You will then receive a Notice of Amortization for your transaction reference.
You can visit the Pag-IBIG website for more details, and useful tools like the Amortization Calendar.
ABOUT THE AUTHOR: PATRICIA DE CASTRO-CUYUGAN
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