Pag-IBIG Fund Circular No. 233

MODIFIED GUIDELINES OF THE “ABOT-KAMAY PABAHAY” PROGRAM

The Pag-IBIG housing loan may be used to finance any one or a combination

of the following:

o Purchase of a fully developed lot not exceeding one thousand square meters

 (1,000 sq. m.), which should be within a residential area;

o Purchase of a lot and construction of a residential unit thereon;

o Purchase of a residential house and lot, townhouse or condominium unit,

inclusive of a parking slot, which may be:

o Construction or completion of a residential unit on a lot owned by the

member;

o Home improvement, i.e. any alteration in an existing residential unit

intended by a homeowner to be a permanent integral part thereof, which

will enhance its durability and material value;

o Refinancing of an existing mortgage with an institution acceptable to the

Fund, provided that:

o Combination of loan purposes shall be limited to the following:

o  Purchase of a fully developed lot not exceeding one thousand

square meters (1,000 sq. m.) and construction of a residential

unit thereon;

o Purchase of a residential unit, whether old or new, with home

improvement;

o Refinancing of an existing mortgage with home improvement;

o Refinancing of an existing mortgage, specifically a lot loan, with

construction of a residential unit thereon.

Pag-IBIG members must satisfy the following requirements to qualify for a

housing loan:

o Must be a member under the Pag-IBIG I, Pag-IBIG II or Pag-IBIG

Overseas Program (POP) for at least twenty-four (24) months, as

evidenced by the remittance of at least 24 monthly contributions at

the time of loan application.

o A member, whether new or with existing monthly contributions that

are still short of the 24-month membership requirement, shall be

allowed to make lump sum payment based on the mandatory

monthly membership contribution rates (both EE and ER share) to

meet said requirement at point of loan application. Lump sum

payment of membership contributions shall be considered a single

contribution for the applicable month as of the payment date.

o Said member shall be required to pay the upgraded membership

contribution rates upon housing loan approval and onwards.

o A member who has contributed for at least two (2) years shall be

required to pay the upgraded contribution rates upon housing loan

approval and onwards.

o For purposes of satisfying the residency requirement, the period

corresponding to the Total Accumulated Value (TAV) applied earlier

to a member’s outstanding loan (offsetting) shall be considered

when counting the total number of monthly contributions, provided

that the remaining TAV after offsetting does not fall below the

equivalent amount of 24 monthly contributions.

o Not more than sixty-five (65) years old at the date of loan application

and must be insurable; provided further that he/she is not more than

seventy (70) years old at loan maturity;

o Has the legal capacity to acquire and encumber real property;

o Has passed satisfactory background/credit and employment/ business

checks of the developer and Pag-IBIG Fund;

o Has no outstanding Pag-IBIG housing loan, either as a principal

borrower or co-borrower;

o Had no Pag-IBIG housing loan that was foreclosed, cancelled, bought

back, or subjected to dacion en pago;

o Has no outstanding Pag-IBIG multi-purpose loan in arrears at the time

of loan application. A member whose multi-purpose loan is in arrears

shall be required to pay his arrearages over the counter to update his

account.

A qualified Pag-IBIG member shall be allowed to borrow an amount up to a

maximum of Two Million Pesos (P2,000,000.00), which shall be based on the

lowest of the following: the member’s actual need, his loan entitlement and the

loan-to-collateral ratio.

o A member’s loan entitlement shall be proportionate to his Pag-IBIG contributions

(inclusive of the employer counterpart contributions), which shall be based on the

following schedule:

o  POP contributions made in foreign currency shall be converted to its peso

equivalent on the date when payment was made, rounded off to the nearest

dollar. POP members may also opt to pay the required/upgraded contributions

in its local currency (peso) equivalent.

o  For loans up to Seven Hundred Fifty Thousand Pesos (P750,000.00) which

shall either be secured by a First Real Estate Mortgage or a Contract to Sell on

the property, which is bought from a developer and is covered by a buyback

guaranty, the member’s loan entitlement shall be based solely on his Pag-IBIG

contributions.

o With the Fund’s move to make home financing more affordable to Pag-IBIG

members, the loan-to-collateral value ratio was increased. At present, the

following rates are in effect:

o  The Pag-IBIG Abot-Kamay Pabahay Program shall bear interest at the following

rates per annum:

o  The loan shall be repaid at a maximum term of thirty (30) years, and shall, in no

case, exceed the difference between the present age and age seventy (70) of the

principal borrower.

o The borrower shall be considered in default when he or any of his co-borrowers

fails to pay any three (3) consecutive monthly amortizations and/or monthly

membership contributions and other obligations on the loan.

o The borrower shall pay a Processing Fee of Three Thousand Pesos (P3,000.00),

which shall be paid as follows:

1.1 One Thousand Pesos (P1,000.00) upon filing of the loan application,

which shall be non-refundable if the loan is disapproved;

1.2 Two Thousand Pesos (P2,000.00) upon loan takeout.
 

 The Pag-Ibig Housing Loan Net Disposable Income Table:

REQUIREMENTS:

 Residential unit:

1. Housing loan application with recent ID picture of borrower. (Properly accomplished and duly notarized)
2. Membership status verification slip (MSVS)
3. Certified true copy of the Transfer certificate of title (TCT) or Original certificate of title (OCT) or Condominium certificate of title (CCT) by the Register of deeds (latest title)
4. Photocopy of Updated tax declaration of lot and building
5. Sketch plan with (vicinity map indicating existing land marks and lot plan indicating the correct boundaries) duly signed by a Licensed Geodetic Engineer.
6. Occupancy permit (for new building)
7. Building/Electrical/Sanitary/Plumbing permit (for new building)
8. Building plan (for new building)
9. Specifications and bill of materials duly signed by licensed Civil Engineer/Architect (for new building)
10. Contract to Sell or Deed of Conditional Sale
11. Valid Certificate of Employment and Compensation (CEC) (for Pag-ibig 1 & 11)/ employment contract or Employer’s Certificate of Income duly signed by the employer (for POP members)
12. Photocopy of the latest pay slip or payroll (one month period of both spouses)
13. Income tax return or BIR form 2316 for the year immediately preceding date of loan application or Audited Financial Statement and Income Tax Return (for self-employed)
14. Proof of Billing address
15. Processing fee of Php 3,000 (Php1,000 upon filing > non-refundable) Php2,000 upon takeout
16. House pictures four (4) sides – with signature of borrower at the back.

NOTE:

• Medical questionnaire and full medical exam for borrowers over sixty (60) years old
• Submit Special power of Attorney (SPA) for members working abroad who will avail the loan here in the Philippines duly certified by the Philippine Embassy or Consulate in the country where the member is staying (Upon transfer of Certificate of title in the name of the borrower/s, SPA must be annotated on the title).
• Submit all documents supporting the Road Right of way (RROW) such as Approved Subdivision plan, base map, titles with annotation of RROW.

HMDF or Pag-ibig reserves the right to inquire additional requirements if deemed necessary.