Pag-IBIG Fund Guidelines Notes

2.1: Purchase of fully developed residential lots or adjoining residential lots not exceeding 1000sqm.
2.2: Purchase of residential house and lot, townhouse, or condominium unit including a parking slot.
May be old or brand new.
Property mortgage by the fund.
Includes adjoining houses, townhouse, or condominium unit.
2.3: Construction or completion of a residential unit on a residential lot.
2.4: Home improvement.
2.5: Refinancing of an existing housing loan.
2.6: For retail housing loans, purchase of residential lot or unit plus the cost of transfer of title.

3.1: Pag-IBIG Membership
Must be an active member under Pag-IBIG I with at least 24 monthly savings at the time of application.
If savings are short, can apply if contribution is equivalent to 24 months.
Non-members can apply by remitting the required 24 monthly savings on a lump sum basis (inclusive of EE & ER counterparts).
3.2: Not more than 65 years old at the date of application and not more than 70 years old at maturity.
3.3: Legal capacity to acquire and encumber real property.
3.4: Satisfactory Credit Investigation Bureau Information (CIBI) of Pag-IBIG fund.
3.5: Must be updated on existing Pag-IBIG housing account if principal or co-borrower.
3.6: No outstanding Pag-IBIG short-term loan (STL) in arrears at time of application.
3.7: No prior housing accounts that were foreclosed, cancelled, bought back due to default, or subjected to dacion en pago.

4.1: Based on the capacity to pay.
4.2: Based on the loan-to-appraisal value (LTV) ratio.
4.3: Based on the desired loan or member’s actual need.
Tacked Loans:
Maximum of three qualified Pag-IBIG members who are related within the second civil degree of consanguinity or affinity.
If non-relatives or related beyond the second civil degree of consanguinity or affinity, standard terms apply.

Pag-IBIG housing loans charged with interest rates based on the full Risk-Based Pricing Framework (FRBPF).
Interest rates repriced periodically depending on the chosen repricing period of the borrower.

Housing loan must be repaid within a maximum term of 30 years.
Maturity age cannot exceed the difference between 70 years and the present age of the principal borrower.
Formula: Loan Term = Maturity Age - Current Age - 1

7.1: Modes of Payment include:
Salary deduction
Over-the-counter payments (cash/check or PDC)
Through collecting agents such as banks, developers, or remittance centers.
7.2: Payment due dates will commence the month following the takeout, continuing monthly until full settlement.
If staggered release, payment dates coincide with the DV/check date or constructive takeout date.
7.3: Partial payments accepted but unpaid portions charged with applicable penalties.
7.4: Unpaid amounts will incur a penalty of 1/20 of 1% for every day of delay.
7.5: Monthly payments are prioritized as follows: penalties, insurance premiums, interest, and then principal.

8.1: Specifications for retail housing loans.
8.2: Developer-assisted housing loan requirements:
Developer must execute a contract to sell with Pag-IBIG member.
Execution of a deed of assignment in favor of the fund, annotated in the TCT of the property.

9.1: Borrowers must have mortgage redemption insurance (MRI) or sales redemption insurance (SRI).
Covers interim and regular events of death or permanent disability by applying proceeds to the outstanding housing loan.
9.2: Principal borrower must obtain fire and allied perils insurance on the property.

10.1: Borrowers allowed to prepay without penalties, subject to a service fee by the fund.
Accelerated payments of excess monthly amortizations applied as advance amortizations, unless otherwise specified.

11.1: Conditions of default include:
Failing to pay three monthly amortizations.
Failure to submit proof of payment for real estate taxes.
Violating obligations in contracts with Pag-IBIG fund.
11.2: At default, outstanding obligations immediately due, including accrued interests, penalties, and fees.

Borrowers must pay applicable fees for every availment of a housing loan including processing and appraisal fees.

13.1: Conditions for availing subsequent loans secured by the same or different collateral:
Must be an active member, have updated accounts, and capacity to pay obligations.
13.2: Subsequent housing loans can be for any purpose defined in the guidelines.

The guidelines on the Pag-IBIG Fund EUF program are open to reviews at any time.