Pag-IBIG Fund Offers Up to P6 Million Loanable Amount for Housing Loan

Guide on the Pag-IBIG Fund Housing Loan Offer for Members

Members of the Pag-IBIG Fund may avail a Housing Loan with a maximum loanable amount of up to P6 million under the offer.

One of the biggest state entities in the Philippines is the Pag-IBIG Fund. Founded in 1978, it is serving the Filipino populace for decades now with its Housing Loan offer remaining as the main contributor of its prominence.

The Fund was created to help the Filipino people, most especially the low-income earners, acquire residential properties in affordable ways. Through it, the people can opt for low monthly installments as the term can be extended to up to 30 years.

Truth be told that while a residential property is a good investment, its purchase requires a huge amount and not everyone is ready for it. Thus, the Housing Loan provides countless Filipinos an option to push through with their goal even being unready for a one-time payment. The Fund will pay for the purchase for its qualified member.

The Pag-IBIG Housing Loan offer is open for application for several purposes. A qualified member may apply for the loan to finance any of the following:

  • Purchase of a fully developed residential lot or adjoining residential lots not exceeding 1,000 square meters
  • Purchase of a residential house and lot, townhouse or condominium unit:
    • Pre-owned or brand-new units
    • A property mortgaged with Pag-IBIG Fund
    • Adjoining house and lots / townhouses / row houses / condominium units
  • Construction or completion of a residential unit on a residential lot owned by the borrower or a relative of the borrower
  • Home renovation or improvement
  • Refinancing of an existing housing loan from a bank or another lending entity

According to the Pag-IBIG Fund, in the case of applying for the loan for the purpose of refinancing an existing housing loan, the payment to the said must be updated and without past due for beyond 30 days for the last six months from the date of the loan application to the Fund.

The Pag-IBIG Fund has set the maximum loanable amount under its Housing Loan offer to up to P6 million. However, the borrowing amount per loan application will be assessed based on the following factors:

  • Your actual need;
  • Your desired loan amount;
  • Your loanable amount based on your capacity to pay; and,
  • Loan-to-Appraised Value ratio
Photo Credit: The Manila Times

The Pag-IBIG Fund now allows up to three (3) members combining their accounts for a single loan. The government-run entity has set some qualifications for a member’s eligibility to the loan offer.

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