APPLYING a housing loan from banks demands not just many requirements but a lot of patience as well. This is usually the case with private financing institutions like banks.
But don't fret. For Filipino citizens, there is a government institution which caters to people with regular income who wanted to apply for a housing loan.
The Home Development Mutual Fund, popularly known as Pag-ibig Fund, is not only a government savings program but an affordable housing financing for the Filipino workers as well.
To apply for a housing loan at Pag-ibig, a person should of course first and foremost be a member either under the Pag-ibig I, Pag-ibig II or Pag-Ibig Overseas Program (POP) for at least 24 months.
Engr. Malou Sangalang of Pag-ibig Davao clarified though that the 24 months contribution does not mean one needs to be a member of Pag-Ibig Fund for two years.
“One only needs to pay 24 months contribution. If you haven’t paid the required number of contribution, you can pay the 24 months contribution through lump sum payment,” she said in a phone interview.
An applicant should also not be more than 65 years old at the date of loan application and must be insurable; provided further that he is not more than seventy (70) years old at loan maturity.
He/she also has the legal capacity to acquire and encumber real property and must pass satisfactory background/credit and employment/business checks of the Pag-ibig Fund.
Additionally, the housing loan applicant should have no outstanding Pag-Ibig housing loan, either as a principal borrower or co-borrower. However, if a co-borrower signifies an intention to avail of a housing loan for himself, he can only be allowed to do so if the loan is updated and the amount proportionate to his loan entitlement has been fully paid. That’s the only time the co-borrower is released from the original obligation and be allowed to avail of his own housing loan. Furthermore, the loan is still subject to standard evaluation procedures.
She or he should have no Pag-ibig housing loan that was foreclosed, cancelled, bought back due to default, or subjected to dacion en pago, which shall include cases where the borrower is no longer interested to pursue the loan and surrenders the property.
Finally, the applicant should have no outstanding Pag-ibig multi-purpose loan which has not been paid at the time of loan application.
A member whose multi-purpose loan is not yet fully paid shall be required to pay his arrearages over the counter to update his account.
Moreover, Pag-ibig Housing loan can be availed whether one wants to purchase a fully developed residential lot or adjoining residential lots not exceeding 1,000 square meters, which should be within a residential area. It can also be used to purchase a residential house and lot, townhouse or condominium unit or to construct or complete a house owned by the borrower or a relative of the borrower.
Housing loans can also be used to refinance an existing housing loan with an institution acceptable to the Fund or combination of housing loan purposes.
Additionally, the two modes of applying for a Pag-IBIG housing loan can either be developer-assisted which means the developer assists the member in his/her housing loan application, or the retail, meaning the member applies directly to the Fund.
Note, however, “that not all developers/subdivisions in Davao City accept Pag-ibig financing. If it’s a low cost housing in Davao City, then Pag-ibig housing is accepted.” Some of the low-cost housing that accept Pag-Ibig financing are the following: Elenita Heights Park Villas; Aspen Heights; Granville 3; Samantha Residences; Greenwoods Davao; Camella; Amorsolo Homes; Uraya Residences; Cambridge Heights; Villa Constancia Homes – Catalunan Pequeño, Davao City; DECA Homes Resort Residences; Deca Homes Catalunan Grande; Deca Homes Indangan; and The Sincere. For more information about how to avail of the Pag-Ibig Housing Loan, visit their website at: http://www.pagibigfund.gov.ph/abouthdmf.aspx and click “Housing Loan Availment”. (With facts from Pag-ibig Fund website)