About Pag-IBIG FAQ – we all know this is a government agency that aims to help Filipinos own a decent home. Owning a home is a financial burden particularly for those who don’t have enough budget to build a house.
Fortunately, the government had created a funding program called Pag-IBIG Fund. Presently, the agency has been serving millions of members to provide housing loans. But, not all Filipinos understand about the program.
To help you understand more on how Pag-IBIG can assist you to own a house, familiarize the frequently asked questions listed below or Pag-IBIG FAQ.
- Who are eligible to apply for Affordable Housing Program?
Pag IBIG members who satisfy the following requirements may be availed the housing loan program;
- Have a 24 monthly continuous contributions under Pag-IBIG I Membership Program. The new members may pay the 2 years contributions in total, base on what amount loan you are applying for;
- With monthly gross income not exceeding ₱17,500.00 for those working in the NCR and ₱14,000.00 for workers in other regions;
- Below 65 years old;
- No outstanding Pag-IBIG housing loan nor any for of loans;
- No outstanding multi-purpose loan in arrears;
- No Pag-IBIG housing loan that was foreclosed, cancelled, bought back due to default or subjected to Dacion en Pago.
- How much a member can borrow from the Pag-IBIG Fund?
The maximum loanable amount that the program allows is about PHP 6 million. However, the maximum loanable amount depends on the capability to pay and the actual need of the borrower.
- What can a member buy with the borrowed money?
A member who was granted with the housing loan can use the money to buy a piece of land not more than 1,000 sq. m within a fully developed community or residential subdivision. The borrower is also allowed to buy a brand new or old residential house and lot, a low-cost condo unit or a townhouse.
Read Also: Ways of Checking PAG-IBIG Contribution and Payment History Online
Additionally, the borrower is also allowed to buy a for sale or foreclosure property acquired by the agency or a mortgaged house. In this case, the homebuyer can join a public bidding or a negotiated sale.
- Does the agency offer a loan for house construction?
In cases that the borrowing member has a residential lot, the agency will lend a money to finance the construction of the house.
- Can the loaned amount be used for home renovations or improvements?
The housing program isn’t only for building a new home. The borrowed funds can also be used to finance home improvements, modifications and renovations. However, the member must ensure that the improvement is permanent and will enhance the material value and durability of the existing house.
- Can the borrowed money be used to pay for an existing mortgage?
The Pag-IBIG Fund allows members to borrow money and use it to pay for an existing mortgage. However, the mortgage should not be defaulted for a maximum of 12 months prior to the loan application. Likewise, the mortgage must be paid by the original lender for at least two years.
- What are the interest rates?
For loans granted up to PHP450,000, the interest rate is 4.5% inclusive for those workers in the NCR earning a monthly income of PHP15,000 and PHP12,000 for those working in other regions.
For loan amount up to PHP750,000, the borrower will pay the interest rate of 6.5%. The borrower from the NCR must have a monthly income of not exceeding to PHP17,000 and for workers in other regions must be not exceeding to PHP14,000.
Read Also: List of Pag Ibig Housing Loan Requirements
If you’re interested to avail the housing loan program of Pag-IBIG Fund, all you have to do is to visit their office or log in to the official website of the agency. Hope you knew more about the Pag-IBIG FAQ.