Pag Ibig housing loan Developer Assisted Guide

Pag Ibig housing loan Developer Assisted Guide – Let me share the story of how I got my Pag Ibig housing loan approved without actually going to Pag Ibig office. Is that even possible? Yes it is! But just to be clear I am no expert in how housing loan works but I can give you a buyers point of view of what happened during my Pag Ibig housing process.

 

 

 

Step 1 – Look for an organized and reliable developer

A developer is a company that will build your home for you and in my case it’s Lumina Homes Inc. when we first encountered them but is now they called themselves Prima Casa Land and Houses Inc. During the course of this article I will keep on calling them Lumina since that’s what our village will be called. Just to be clear this is not a recommendation and if I will rate them from 10 to 1 with 10 being the highest I would say just 7 out of 10. I am still thankful though because in the end they got the job done and have my Pag Ibig housing loan approved.

 

So our first encounter with them goes like this. We are assisted by a guy who I believe later on became their manager and explain to me and my wife what was about to happen. During those days I am just a newbie in the BPO industry just earning a total of P 17,000 a month and I was actually trying to buy a costly 2 storey house worth P 1,084,000 I was that confident.

Step 2 – Check if you are Eligible to avail the Pag Ibig Housing Loan

Below are the requirements in order for you to be eligible for a Pag Ibig Housing Loan

1. Have made at least 24 monthly savings. The lump sum payment of the required 24 monthly savings is allowed.
2. Have a gross monthly income not exceeding ₱ 17,500.00
3. If with existing Pag IBIG housing account, it must be updated
4. Have no outstanding Pag IBIG housing loan arrears at the time of loan application
5. Have the legal capacity to acquire and encumber real property
6. Have passed satisfactory background / credit and employment / business checks of Pag IBIG Fund
7. Are not more that 65 years old as of date of application and must be insurable
8. Had no Pag IBIG housing loan that was foreclosed, cancelled, bought back due to default, or usbjected to dacion en pago.

Important NOTE: You can pay a lump sum of the required 24 monthly savings if you just became a member of Pag IBIG Fund.

 

Step 3 – Pass the following requirement given to you by the Developer

Information sheet by Lumina	Interview sheet from Lumina	Requirements you need to pass for Housing Loan
Pag Ibig Housing Loan estimated computation	Reservation Agreement with Contract details (a)	Reservation Agreement with Contract details (b)

 

So this are the documents I filled up on our first days with Lumina. I uploaded high resolution pictures so that you can read everything. I also put watermarks to prevent people from plagiarism. I think you would notice that my salary was really low back then that’s why they required me to have my wife as a co buyer. But because I didn’t want that to happen I looked for greener pasture and good thing I found one that has enough pay for the house I want to buy. They then changed the terms so that I will be the only one shouldering everything. I know it was a big gamble for me but that’s life man.

 

 

Pag Ibig Housing Loan Requirements

Based on the third document that was given to me by Lumina you would see that there are different requirements depending on your employment status so to be more specific I’m going to list  them below.

Pag Ibig Housing Loan Requirements for  Locally employed:

• Photocopy of Income Tax Return and W-2 (latest) if files separately, ITR of Spouse also
• Original and notarized Certificate of Employment and Compensation
• Payslip for the Last 3 months
• Bank statement for the last 3 months
• Vouchers for the last 6 months (commissions)

Pag Ibig Housing Loan Requirements for  Self employed:

• Photocopy of Business Registration (DTI/SEC)
• Mayor’s Permit
• ITR for the last 2 years
• Original audited financial statement for the last 2 years
• Franchise/OR/CR (for taxi/jeepney/bus operators)
• Professional Tax Receipt (PTR) for practicing professionals
  
• Bank Statement for the last 6 months
• Picture of business establishment
• Company profile (if applicable)
• Leasing contract (if applicable)
• Secretary’s Certificate/Board resolution (for corporation)
• Articles for incorporation (for corporation)

 

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Pag Ibig Housing Loan Requirements for Overseas Filipino Worker (OFW):

• Original and notarized Certificate of Employment and Compensation (consularized)
• Photocopy of contract of employment (valid 6 months after reservation)
• Photocopy of Passport (with entries)
• Photocopy of Seaman’s book
• Proof of remittances (last 6 months)
• Payslip for the last 3 months
• Bank statement for the last 6 months
• Special power of Attorney with consular seal if notarized abroad
• Certificate of Vacation Status with tentative departure
• Certificate of contract renewal or extension

 

Pag Ibig Housing loan Standard Requirements

Now these requirements that are needed in any case or employment type you are in:

• Photocopy of Marriage Birth certificate
• 2 pcs. 2×2 and 3 pcs 1×1 pictures for both Applicant/Spouse or co-buyer
• Proof of Billing Address / Baranggay Clearance
• Post dated checks (for Equity and amortization)
• Two valid identification Card (Company and Government)
• Tax Identification No./ID (TIN)

For my OFW subscriber if you want to buy a house using Pag Ibig Housing Loan it needs to be named on you. You can’t just say that it must be named to your wife and parents and because you will be in charge of paying it.

 

Pag Ibig Housing Loan terms of payments explained

So the monthly down payment for it is ₱ 11,667 which is payable for 18 months so if you will count that the last pay will be this coming February. While the monthly amortization of ₱ 6,377 which they estimated was lowered down to ₱ 6,150 I don’t know the reason why but I accepted it of course. We just paid the first amortization pay last week and that means we are also paying the ₱ 11,667 since like I said it will end in February. That’s how down payment terms and amortization works in buying a house.

This is what I liked about the getting a developer when availing a Pag Ibig Housing Loan. They literally will process everything. They will give you forms and documents that you just need to fill up. You don’t need to be an expert with housing to buy a house. All you need to do is to decide whether you can keep up with the amount and process they are trying to sell to you.

 

 

Step 4 – Wait for the Notice of Approval (NOA) of your Loan release

Now depending on you developer or if you have completed all the requirements, a Notice of Approval for your Pag IBIG Housing Loan will arrive. This is will contain the official amount that you will be able to loan. The reason why there is a Notice of Approval is because your Developer will use it to compute everything that will be deducted on that Loan. The above picture shows what a Notice of Approval looks like.

The most important thing during this phase is the agreement between you and your developer. It is on this stage also that a Pag IBIG representative will conduct a seminar to explain more about this. Once everything is agreed upon you will be needing to sign an agreement and therefore will be passed on the Pag IBIG office.

I’m glad I wrote this article because this is the only time I looked into the details deeply. So here’s what I found out about the computation above.

• Total Contract Price (TCP) = ₱ 1,084,000.00 | House and Lot Unit Price
• Downpayment = ₱ 191,705.00 | That’s ₱ 11,667.00 (Downpayment) x 16 ( Number of Months I already paid during Loan approval ) = ₱ 186,672.00 + ₱ 5,000.00 (Reservation Fee)
• Outstanding Balance = ₱ 892,295.00 (Total Contract Price TCP minus Downpayment)
  
• Loan Value = ₱ 869,000.00 The approved amount of Pag Ibig Housing Loan

 

That’s the very basic components of my Pag Ibig Housing now let’s get into the tiny details

• ₱ 2,473.00 | SRI (Sales Redemption Insurance) / MRI (Mortgage redemption insurance) a form of life insurance that pays off a part or the whole of the insured’s outstanding mortgage balance in case of his or her death or total disability.
• ₱ 3,097.00 | Fire Insurance
• ₱ 466.63 Interim MRI* | on the date of issuance of the Notice of Approval (NOA) or Letter of Guaranty (LOG) by the Pag–IBIG Fund, the interim MRI / SRI coverage on the principal borrower shall take effect.
• ₱ 3,000.00 Processing Fee | Pag-IBIG Housing Loan comes with a non-refundable processing fee of ₱ 3,000 only, which is divided as: Upon Loan Application, ₱ 1,000 and Upon loan take-out ₱ 2,000.
• ₱ 9,038.03 | Total amount that will be deducted on the Loan.

Where to get post-dated checks for Payment

 

 

Step 5 – Pag IBIG housing Loan release

Finally the loan release. Again during this phase you should already known all the details about the miscellaneous fees for your house which are indicated above. Most probably you will be called upon on your developer’s office to sign the Loan release form and be instructed to prepare your 12 pieces bank checks. It would be better to do this in advance specially if your developer don’t issue any bank referral to get approved easily.

 

Step 6 – House unit turn over

I remember the feeling when I am on this stage. I was super excited because I will finally be able to hold the keys of my house. At this stage also is where I was informed about the house related things like, what you can extend, homeowners association fee, water and electrical services application.

Always remember this: You don’t need to be on this stage to visit your House. It is recommended that you visit your unit right from the Notice of Approval stage and do it regularly.

 

 

Useful tips during the process of your Pag IBIG housing loan

• Once you’ve known the location of your housing unit it would be best to visit it regularly to have an update on the progress and development
• Ask for bank referral from your Developer to get approved on your checking account faster. The checking account is needed as a requirement for your Housing Loan
• Know the person in charge of your Housing Loan application, he/she is the person that collects your requirements and file your Pag IBIG loan
• Know the person in charge on the development of your house. In our case at Lumina we met this guy named Goldy whose our go to guys if we want something to be repaired or improved in our unit

 

Good luck with your application!

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