PAG-IBIG HOUSING LOAN PROCESS
Interested house and lot buyers are often concerned about using their advantage as a PAG-IBIG Fund Member in purchasing their dream houses but are most of the time, not clear on how to proceed with a housing loan.
Here are the step by step process of loan application thru PAG-IBIG Financing.
(Note: You only have to follow steps 1-3 if your real estate developer is offering a PAG-IBIG financing scheme on their house and lots for sale . As it is at the moment, most developers prefer bank or in-house financing on their terms of payment, but not to worry, you can still use your privilege via PAG-IBIG thru individual processing, as per these steps below.
My advice is, compare rates and terms and choose what better suit your needs. Most people think that since it’s PAG-IBIG financing, you’re supposed to have the lowest rates possible on your housing loan. But what most buyers don’t realize is that the competition for a better housing loan rate is very fierce among banks. Most banks nowadays offer up to 20 years fixed rate on their housing loan. Compare to 30 years thru PAG-IBIG, bank financing this is not a bad deal. While some banks offer 10% interest rates for their housing loan, PAG-IBIG has a rate of 10.5% for loans 1.25M to 2M, and 11.5% for loans above 2M.
PAG-IBIG Housing Loan Process:
1. Loan Counselling.
This is the Loan orientation usually conducted at any PAG-IBIG offices.
2. Fill Up The Following Forms.
- Preliminary Counselling Questionnaire
- Membership Status Verification Slip (MSVS)
- Housing Loan Application (HLA)
These forms will help the PAG-IBIG officers qualify your eligibility for a loan. If you are qualified, you will be given a COR or a Checklist of Requirements. ( FAQ: HOUSING LOAN REQUIREMENT )
3. Complete Housing Loan Application (HLA) And Submit Requirements.
Submit your completed HLA and other required documents, and pay a processing fee of P1,000. (The processing fee is non-refundable, whether your loan gets approved or denied)
4. Wait for The Notice of Loan Approval or Letter of Guaranty.
Once your loan is approved, you will be asked to sign the loan documents at the PAG-IBIG office.
5. Proceed to the Bureau of Internal Revenue, Registry of Deeds, City Engineering Office, and Assessor’s Office.
- Present the Deed of Sale to BIR and submit other necessary documents:
- Tax Declaration
- Tax Reciept
- Documentary Tax Stamps and Capital Gains
- Certificate Authorizing Registration (CAR)
- Put an annotation of the Land Title Mortgage on the Registry of Deeds, pay transfer tax and registration fees for the transfer of title.
- Secure an occupancy permit from the city’s Engineering Office.
- Secure a tax declaration at the Assessor’s Office for use as a basis for your real property taxes.
6. Go back to PAG-IBIG office and present the following documents cited below.
- Original Transfer Certificate of Title (TCT) in the name of the housing loan applicant with mortgage annotation on it.
- Deed of Absolute Sale (DOAS) with original stamp from the Registry of Deeds
- New Tax Declaration
- Updated Real Estate Tax Receipt
- Occupancy Permit from the Engineering office where the property you’re purchasing is located.
- Assignment of Loan Proceeds
7. Recieve Loan Proceeds from PAG-IBIG so you can pay the seller of the property.
There you have it. These are the steps you need to follow to apply for a housing loan in PAG-IBIG. This steps will come in handy if the developer you’re buying your property from does not offer PAG-IBIG terms to finance the loan and you have to file for the loan individually.
I hope that helps.