How to buy a property using Pag-IBIG Housing Loan?

A house is perhaps one of the major purchases we’ll make in our life. Good thing there are a lot of a number of financing options for us here in the Philippines, including through Pag-IBIG housing loan. Pag-IBIG Fund, or the Home Development Mutual Fund (HDMF), was established in 1978 as an answer to the need for a national savings program and an affordable shelter financing for the Filipino worker.

So how can you avail of the Pag-IBIG Housing Loan to purchase your dream home? Here are the steps:

Step 1.

Get your or checklist of requirements, Housing Loan (HL) application form and other related forms at the Servicing Department of any provincial branch office of Pag-IBIG fund. Forms can also be downloaded HERE.

Accomplish the following forms prior to filing:

Health Statement Form (Medical Questionnaire)
- For OFW members over 60 years old
- For Loans over Php 2M to Php 6M and for borrowers aged up to 60 years old
Health Statement Form (Medical Questionnaire) and Full Medical Examination
- Borrowers over 60 years old

Step 2

Submit your Housing Loan Application to the Pag-IBIG Fund with complete requirements. Pay partial processing fee of Php 1 ,000 (non-refundable).

For NCR Properties, file at any of the following:
- JELP Business Solutions Building #409 Shaw Boulevard Mandaluyong City (near Dumlao Gym)
- Kamias Branch # 795 Anchor Center EDSA Quezon City (near GMA Kamuning Station)
- Imus Branch Olma Bulding Emilio Aguina do Highway Imus, Cavite
Provincial Properties: To be filed at the Pag-IBIG office nearest the subject property

Processing Period: 20 working days (Inclusive of Credit Investigation and Property Valuation)

You may also file your HL application online via www.pagibigfund.gov.ph, E-Services.

Step 3

Receive your Notice of Approval (NOA)I Letter of Guarantee (LOG) and sign your loan documents.

NOA will be released ONLY to the borrower or to the Attorney-ln-Fact for OFW borrowers, provided with SPA.

Step 4

Accomplish your NOA requirements for check release:

You are given 90 calendar days to do the following:

For purchase of House and Lot/Purchase of Condominium Unit/Purchase of Lot
- Give LOG to the seller
- Proceed to the BIR for payment of Capital Gains Tax and Documentary Stamp Tax. The BIR will issue Certificate Authorizing Registration
- Proceed to the Local Government Unit (LGU) for payment of Transfer Tax
- Proceed to the Registry of Deeds (RD) for the transfer of the title and annotation at mortgage
- Proceed to the LGU for the transfer of Tax Declaration
- Submit complete requirements to Pag»lBIG Fund
For purchase of House and Lot Mortgaged with Pag-IBIG Fund
- Proceed to the BIR for payment of Capital Gains Tax and Documentary Stamp Tax. The BIR will issue Certificate Authorizing Registration
- Proceed to the Local Government Unit (LGU) tor payment of Transfer Tax
- G0 to the Pag-IBIG office to schedule trip to the Registry of Deeds (RD) for transfer of title and annotation of mortgage
- Proceed to the LGU for transfer 0f Tax Declaration.
- Submit complete requirements to Pag-IBIG Fund
For construction of House/Home Improvement
- Proceed to the BIR for payment of Documentary Stamp Tax
- Proceed to the Registry of Deeds (RD) for annotation of mortgage
- Submit complete requirements to Pag-IBIG Fund
For refinancing
- Proceed to the bank/financing institution to give the Letter of Guaranty (LOG) and Loan and Mortgage Agreement (LMA)
- Proceed to the Registry of Deeds (RD) for annotation of mortgage
- Submit complete requirements to Pag-IBIG Fund

Step 5

Receive loan proceeds at the Pag-IBIG Fund

Payee to bring two (2) valid IDs. (Payee is either the borrower, the seller, or a third party to which the loan proceeds is assigned to be released.) Borrower to bring 12 PDCs (if payment is not through salary deduction).
Loan proceeds will be released to the person/institution assigned by the borrower/buyer.

Step 6

Start paying your monthly amortization.

One month from DV/Check Date
For house construction / home improvement, one month from DV Check Date of the final loan release.
- For house construction or home improvement, the loan release shall be staggered based on the progress of construction.

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