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.
Related Posts:
- When is it time to buy a house?
- Pag-IBIG Housing Loan Application Requirements and Procedures
- 4 Home Financing Options in the Philippines