PAGIBIG Housing Loan: Requirements & Processing Time during COVID-19 Pandemic

You’ve been eyeing a house and you’ve wanted to buy it for some time now. You managed to save some money, but still not enough to pay the full price of the property. The best option right now might be to get a loan. Why not avail of a PAG-IBIG housing loan?

Here’s everything you need to know about the PAG-IBIG housing loan — from the list of requirements to the application process to the interest rate that will be charged on your loan. These are updated and valid for the year 2020.

Good news! PAG-IBIG even lowered the interest rate from 5.375% to 4.985% per year for a 1-year repricing loan. Take note: this low-interest rate promo is valid until the end of December 2020 only.

Continue reading to find out the PAGIBIG home loan requirements and, who knows, you might be able to buy and own that dream house of yours this year!

The Home Development Mutual Fund of the Philippines, more commonly known as PAG-IBIG, has been one of the usual options of Filipinos when looking for an affordable home loan.

Fortunately for members, PAG-IBIG has recently simplified the application steps and reduced the application requirements to make it easier for you to get a PAG-IBIG home loan! Check it out below.

Uses of PAG-IBIG Loan

Of course, we all know that you can get a Pag-IBIG housing loan if you want to purchase a house, house and lot, or even a condo unit. But did you know that a Pag-IBIG loan can be used for other housing-related purposes as well, including buying a parking slot or renovating your current home?

Here’s a list of cases that can be financed by a PAG-IBIG housing loan.

1. Purchase of a fully developed residential lot or adjoining residential lots, 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;
• An acquired asset of the Pag-IBIG Fund; or
• Adjoining houses and lots/ townhouse/ row houses/ condominium units.

Take note that the the subdivision project where said residential units are located must have complied with all required facilities pursuant to BP No. 220, or the law on Economic and Socialized Housing in the Philippines.

3. Construction or completion of a residential unit on a residential lot owned by the borrower or a relative of the borrower based on accommodation of mortgage;

4. Home improvement on the house owned by the borrower, such as alteration/s in an existing residential unit intended by the borrower to be a permanent integral part thereof, which will enhance its durability and material value;

5. Refinancing of an existing housing loan with an institution acceptable to the Fund, provided that, the account is updated at least one (1) year old upon application as supported by the borrower’s official receipts or by a Statement of Account issued by the financing institution signed by the Manager or Account Officer.

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.

7. Combination of loan purposes plus cost of transfer of title, which shall be limited to the following:

Purchase of residential unit and transfer of title in favor of the retail borrower;

• Purchase of a residential unit with home improvement, and transfer of title in favor of the retail borrower;
• Purchase of residential lot and transfer of title in favor of the retail borrower;
• Purchase of residential lot with house construction, and transfer of title in favor of retail borrower.

Pag-IBIG Housing Loan Eligibility Requirements

If your housing needs is one of the reasons listed above, you may decide to take out a loan from Pag-IBIG. But are you eligible? Check below if you satisfy the following requirements and conditions.

1. Of course, first and foremost, you must be a Pag-IBIG member. Specifically:

• You must be a member under Pag-IBIG I Membership Program for at least twenty-four (24) months, as evidenced by the remittance of at least 24 membership savings (MS) at the time of loan application.
• A new member who wishes to apply for a housing loan shall be required to pay in lump sum the required 24 monthly membership savings (MS). Similarly, a member with less than 24 MS may pay his MS for the lacking months. For both cases, the lump sum payment shall be based on MS that correspond to the loan amount applied for.
• For Overseas Filipino Workers (OFWs) who are Pag-IBIG I members, their Pag-IBIG Overseas Program (POP) MS shall be considered in counting the total number of MS for availment of housing loans.

2. Not more than sixty-five (65) years old at the date of loan application and must be insurable; and 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 Pag-IBIG Fund;

5. If with existing Pag-IBIG housing account, either as principal or co-borrower, said loan must be updated;

6. Has no outstanding Pag-IBIG short-term loan in arrears at the time of loan application;

7. Had no Pag-IBIG housing account that was foreclosed, cancelled, bought back due to default, or subjected to dacion en pago.

Pag-IBIG Housing Loan Requirements

Interested to apply? Here are the documents and requirements that you need to submit to be able to avail of a Pag-IBIG Housing Loan.

1. Two (2) copies of Pag IBIG Housing Loan Application. You may get this from any PAGIBIG office and you need to attach a recent photo of the borrower/co-borrower.

2. One (1) valid ID. In your application, attach a photocopy (back-to-back) of a valid government-issued ID of the Principal Borrower and Spouse, Co-Borrower and Spouse, Seller and Spouse and Developer’s Authorized Representative and Attorney-In-Fact, owner of title (for Accommodation Mortgage), if applicable.

3. Special Power of Attorney (SPA), only for OFWs. Overseas Filipino Workers (OFW) currently in the Philippines during application must submit an SPA notarized prior to date of departure. For OFW member abroad, an SPA notarized by a Philippine Consular Officer, or SPA notarized by a local notary (of the country where the member is working) and duly authenticated by the Philippine Consulate, must be submitted.

4. Certified True Copy of the latest Transfer Certificate of Title (TCT) of the property. For Condo Units, the applicant must present TCT of the land and Certified True Copy of the Condominium Certificate of Title (CCT).

5. Latest Tax Declaration (Tax Dec) of the property.

6. Photocopy of latest Real Estate Tax receipts. This is the annual amilyar paid on the property.

7. Vicinity Map or location sketch of the property.

8. Health Statement Form or Medical Questionnaire. If the borrower is aged more than 60 years old or, if below 60 years old but the loan amount is from P2 million to P6 million, a completed health statement form or medical questionnaire is required to be submitted.

If the borrower is an OFW and over 60 years, aside from the health statement form, a copy of the result of medical examination conducted prior to assignment overseas as required by the employment agency must also be submitted.

In addition to the basic requirements above, applicants must also submit the following “Proof of Income” documents depending on their employment type or source of income.

A. If you are employed in the Philippines, any of the following may be submitted as Proof of Income:

1. Notarized Certificate of Employment and Compensation (CEC), indicating the gross monthly income and monthly allowances or monthly monetary benefits received by the employee;
2. Latest Income Tax Return (ITR) for the year immediately preceding the date of loan application, with attached BIR Form No. 2316, stamped received by the BIR;
3. Certified One (1) Month Payslip, within the last three (3) months prior to date of loan application (For government employees, the Certified One (1) Month Payslip within the last three (3) months prior to date of loan application, must be submitted together with CEC or ITR.)

B. If you are self-employed in the Philippines, any of the following documents are accepted as Proof of Income:

1. Income Tax Return (ITR), Audited Financial Statements, and Official Receipt of tax payment from bank supported with DTI Registration and Mayor’s Permit/Business Permit;
2. Commission Vouchers reflecting the issuer’s name and contact details (for the last 12 months);
3. Bank Statements or passbook for the last 12 months (in case income is sourced from foreign remittances, pensions, etc.);
4. Copy of Lease Contract and Tax Declaration (if income is derived from rental payments);
5. Certified True Copy of Transport Franchise issued by appropriate government agency (LGU for tricycles, LTFRB for other PUVs);
6. Certificate of Engagement issued by owner of business;
7. Other document that would validate source of income

C. If you are an Overseas Filipino Worker (OFW), any of the following may be submitted as Proof of Income:

1. Employment Contract

• Employment Contract between the employee and employer; or
• POEA Standard Contract

2. Certificate of Employment and Compensation (CEC)

• CEC written on the Employer/Company’s official letterhead; or
• CEC signed by employer (for household staff and similarly situated employees) supported by a photocopy of the employer’s ID or passport;

3. Income Tax Return filed with Host Country/Government

Prepare the following documents because Pag-IBIG may require OFW applicants to submit any or all of the following:

• Payslip indicating income received and period covered
• Valid OWWA Membership Certificate
• Overseas Employment Certificate (OEC)
• Passport with appropriate visa (Working Visa)
• Residence card/permit (permit to stay indicating work as the purpose)
• Bank remittance record
• Professional License issued by Host Country/Government

NOTE: If any of the above are in foreign language/s, English translation of the document is required.

Upon loan approval, the borrower must submit these additional documentary requirements in order for the loan amount to be released.

1. TCT/CCT in the name of the borrower/co-borrower/s (if applicable) with proper mortgage annotation in favor of Pag-IBIG Fund (Owner’s Duplicate Copy);
2. TCT/CCT in the name of the borrower/co-borrower/s (if applicable) (Certified True Copy) with proper mortgage annotation in favor of Pag-IBIG Fund (RD’s copy);
3. Updated Tax Declaration (House and Lot) and Updated Real Estate Tax Receipt (Photocopy) in the name of the borrower/co-borrower/s, if applicable;
4. Loan Mortgage Documents, including:

• a. Loan and Mortgage Agreement duly registered with Registry of Deeds with original RD stamp;
• b. Deed of Absolute Sale duly registered with Registry of Deeds with original RD stamp;
• c. Duly accomplished/notarized Promissory Note; and
• d. Disclosure Statement on Loan Transaction.

How to Apply for Pag-IBIG Housing Loan?

Here’s an infographic summarizing the application steps that you need to undergo if and when you’ll apply for a Pag-IBIG housing loan. Details of each step are also explained below.

Step 1. Application

Download or secure a copy of the Housing Loan Application (HLA) which you must fill out in two (2) copies.

You may also complete the application form online (via www.pagibigfund.gov.ph) but you still need to print the copies and you have to choose a scheduled date of submission that you will visit your preferred Pag-IBIG branch.

With your HLA (2 copies) and other required documents on hand, go to any Pag-IBIG branch to submit the requirements. You are also required, at this stage, to pay the P1,000 processing fee and P2,000 appraisal fee, plus the remainder of the lump-sum Membership Savings (assuming you haven’t completed the required 24 MS).

Get the Pag-IBIG Fund Receipt (PFR) and Payment Order Form (POF) after you have paid. Photocopy the PFR and submit 1 copy to Pag-IBIG’s Mortgage Loans Specialist/ or Member Services Officer. You will then be given a copy of the Housing Loan Application Acknowledgement Receipt (HLAAR) which serves as your proof of received application.

Step 2. Processing

Within six (6) working days from the submission of your application, you will receive a call or notice from Pag-IBIG regarding the results of Credit Investigation and Property Appraisal.

This is not yet about the results of your loan application, but more on the results of evaluation regarding your credit-worthiness or your ability to pay the monthly amortizations.

If you passed the Credit Investigation (CI), you will then receive another call this time regarding the schedule of the appraisal of the property. After the property appraisal, this is the time you will be informed if your housing loan is approved or disapproved.

Step 3. Release of Loan Proceeds

If approved, you will be asked to visit the Pag-IBIG office to receive and sign the following documents:

• Notice of Approval (NOA)
• Letter of Guaranty (LOG) (applicable to all loan purposes except for Construction of House and Home Improvement)
• Disclosure Statement on Loan Transaction (DSLT)
• Loan and Mortgage Agreement (LMA)
• Promissory Note (PN)

Take note, at this point, you’re still not yet going to receive the loan proceeds. You will be required to submit all documents identified in the NOA. You are given ninety (90) days or three (3) months to submit all requirements, although of course, the earlier you submit the documents, the earlier you can also get the money you need.

Once you have completed and submitted all required documents, congratulations! The loan proceeds check will now be prepared. To pick up the check, you must present two (2) valid IDs plus either of the following which will authorize the payment of your monthly loan amortization:

• Twelve (12) post-dated checks to cover the first 1-year monthly amortization; or
• Signed “Authority to Deduct” form which will be used to deduct your monthly amortization from your salary / payroll

Pag-IBIG Housing Loan Application Fees

Unfortunately, applying for a PagIBIG housing loan is not free. Applicants are required to pay the following upon submission of the loan application:

• P1,000 Processing Fee – upon filing and submission of the housing loan application with required documents. Take note, this amount is non-refundable.
• P2,000 Appraisal fee – also to be paid upon filing of loan application.

Upon loan take-out, the following fee is charged:

• P2,000 to be deducted from the loan proceeds, once the loan is approved and ready for release.

Housing Loan Processing Time

The actual time it will take to process and release your loan proceeds will depend on when you will be submitting all required documents. All in all, though, assuming you’re able to submit all required documents within just one or two days, you can expect the loan proceeds to be released within one (1) month!

As per Pag-IBIG, for transactions that they will perform on their part, it will take them the following processing times:

The key, therefore, to getting the loan proceeds released as soon as possible is to submit all complete and correct requirements. Get details from the Pag-IBIG staff regarding the documents that you’re supposed to submit so that you won’t have to go back and forth the Pag-IBIG fund office and for the processing of your application to not be delayed.

Pag-IBIG Housing Loan Interest Rates

Here are the latest published interest rates that Pag-IBIG charges on their housing loans. These interest rates are charged annually, and would vary depending on the fixed pricing period that you will choose.

The interest rates are explained in detail, with sample computation of monthly amortization, in this article: PAGIBIG Housing Loan Interest Rates

If you have questions or clarification, visit or contact a Pag-IBIG office near you. Hope you can own your dream property soon!

Other awesome articles that you might find useful!

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• Taxes and fees when buying Real Estate in the Philippines
• 7 Useful Tips when Buying a Condo
• PAGIBIG Housing Loan Interest Rates (Updated!)