How to Apply for a Pag-IBIG Housing Loan

How to apply for a Pag-IBIG housing loan in the Philippines? The Home Development Mutual Fund (HDMF) or popularly known as the Pag-IBIG Fund (Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno) was created by virtue of Presidential Decree No. 1530 on June 11, 1978 as an answer to the need for a national savings program and an affordable shelter financing for the Filipino workers. Today, Pag-IBIG members already include government and private employees, Filipinos who are employed by foreign-based employers, and self-employed individuals. If you have already found out the house of your dream, but you still don’t have enough money to buy the home that you want, you may consider availing the Pag-IBIG housing loan program to acquire your own house and not rent anymore. Find out if you are eligible and learn the steps and procedures to apply for a Pag-IBIG housing loan.

About the Pag-IBIG housing loan program

This housing loan program grants opportunities to Pag-IBIG Fund members to avail of housing loans to finance any one or a combination of the following:

1. Purchase of a fully developed lot not exceeding 1,000 square meters, which should be within a residential area;

2. Purchase of a residential house and lot, townhouse or condominium unit, inclusive of a parking slot, which may be:

• Old or brand new;
• A property mortgaged with the Fund; or
• An acquired asset, which is disposed of through sealed public bidding, negotiated sale, the Rent-to-Own Program, or the “Magaang Pabahay, Disenteng Buhay” Program.

3. Construction or completion of a residential unit on a lot owned by the member;

4. 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;

5. Refinancing of an existing mortgage with an institution acceptable to the Fund, provided that:

• The loan is not in default within 12 months prior to the date of application;
• The said loan has a repayment history of at least two (2) years with the original mortgagee

6. Combination of loan purposes, which shall be limited to the following:

• Purchase of a fully developed lot not exceeding 1,000 square meters and construction of a residential unit thereon;
• Purchase of a residential unit, whether old or new, with home improvement;
• Refinancing of an existing mortgage with home improvement;
• Refinancing of an existing mortgage, specifically a lot loan, with construction of a residential unit thereon.

The 3 modes of applying for a Pag-IBIG housing loan

Eligible members can apply for a Pag-IBIG housing loan though the following modes:

Window 1 – the developer assists the member in his/her housing loan application and offers a buyback guaranty in case the borrower defaults in the payment of amortization and/or monthly contributions;

Window 2 – the developer still assists the member in his/her housing loan application but does not offer any buyback guaranty; and

Window 3 – the member applies directly to the Fund

Who are eligible to apply?

To qualify for a Pag-IBIG housing loan, a member shall satisfy the following requirements:

1. On Pag-IBIG Membership

• 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.
• 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 the 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.
• A member whose loan exceeds P500,000.00 shall be required to pay the upgraded membership contribution rates upon housing loan approval and onwards.
• A member who has contributed for at least two (2) years and whose loans exceed P500,000.00 shall be required to pay the upgraded contribution rates upon housing loan approval and onwards.
• For purposes of satisfying the required two (2) years membership contributions, the member may opt to pay in lump sum any amount short of the said requirement. In addition, the period corresponding to the TAV applied earlier to an outstanding loan shall also be considered when counting the total number of monthly contributions, provided the remaining TAV after offsetting does not fall below the equivalent amount of two (2) years membership contributions.

2. Not more than sixty-five (65) years old at the date of loan application and must be insurable; provided further that he is not more than seventy (70) years old at loan maturity;

3. Has the legal capacity to acquire and encumber real property;

4. Has passed satisfactory background/credit and employment/business checks of the Pag-IBIG Fund

5. Has no outstanding Pag-IBIG housing loan, either as a principal borrower or co-borrower;

However, should a co-borrower in a tacked loan signify an intention to avail of a Pag-IBIG housing loan for himself, he shall be allowed to do so provided the tacked loan is updated and the amount proportionate to his loan entitlement has been fully paid. Hence, the co-borrower shall be released from the original obligation and shall be allowed to avail of his own Pag-IBIG housing loan, subject to standard evaluation procedures.

6. Had no Pag-IBIG housing loan that was foreclosed, cancelled, bought back due to default, or subjected to dacion en pago, which shall include cases where the borrower is no longer interested to pursue the loan and surrenders the property;

7. 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.

What are the steps to apply for a Pag-IBIG Housing Loan?

The following are the steps and procedures for applying Pag-IBIG Housing loan through the End-user Financing:

1.  Attend a loan counseling session at the Pag-IBIG office and accomplish a Preliminary Loan Counseling Questionnaire, Housing Loan Application (HLA)  and Membership Status Verification Slip (MSVS). If eligible secure Checklist  of Requirements (COR) (requirements would depend on the loan purpose).

2.  Submit HLA with complete requirements, and pay the processing fee of P1,000 (non-refundable).

3. Receive Notice of Loan Approval/Letter of Guaranty and sign loan documents.

4.  Proceed to the following:

• Bureau of Internal Revenue for payment of documentary stamps and capital gains tax
• Registry of Deeds for transfer of the title and annotation of mortgage

5.  Submit the following documents to Pag-IBIG for the release of loan proceeds:

• Original Transfer Certificate of Title (TCT) in the name of the applicant
• with annotated mortgage
• DOAS with original RD stamp
• New Tax Declaration in the name of the applicant
• Updated Real Estate Tax Receipt (for house and lot, if applicable)
• Occupancy Permit (secured from LGU Engineering Office, if applicable)
• Assignment of Loan Proceeds

6.  Pay the first monthly amortization on the month immediately following the loan take-out/final loan release.

Other information

1. You may download HDMF Housing Loan Application Form here.

2.  The following are the other housing programs of HDMF:

• “Gabay Pabahay” Program
• Socialized and Low-Cost Housing Loan Restructuring and Penalty Condonation Program
• “Magaang Pabahay, Disenteng Buhay” Program(Acquired Assets)
• ROPOA for Joint Venture

3. You can visit the HDMF / Pag-IBIG Fund website for more information and guidelines, such as the following:

• Checklist of requirements
• Amortization calculator

For your questions and queries, please visit or call the HDMF office in your area. You can check out the address and telephone numbers of different HDMF locations and branches in their website’s directory. Below is the HDMF corporate headquarter and contact numbers:

Atrium of Makati
Makati Avenue, Makati City
Trunklines: (02)811-4401 to 27 connecting all departments
publicaffairs@pagibigfund.gov.ph
Call Center: 724-4244