QuestionsQuestions (CIRCULAR NO. 402)
It governs the guidelines for determining a borrower's loanable amount under the Pag-IBIG Fund End-User Home Financing Program, based on (1) capacity to pay and (2) the loan-to-appraised value (LTV) ratio.
The monthly repayment must not exceed thirty-five percent (35%) of the borrower’s gross monthly income.
For tacked loans, the individual gross monthly income of at most three (3) borrowers shall be considered.
The loan amount to the appraised value of the collateral must not exceed the specified LTV ratios stated in the Circular.
The maximum LTV ratio is ninety-five percent (95%).
The maximum LTV ratio is ninety percent (90%).
The applicable bracket is “over the Economic Housing Limit up to P6,000,000,” and the maximum LTV ratio is 90%.
Item Nos. 4.1.2 and 4.2.1 of Pag-IBIG Fund Circular No. 396 are repealed.
The “Modified Guidelines on the Pag-IBIG Fund End-User Home Financing Program” (as referenced in the Circular) are repealed insofar as they are inconsistent with the new provisions.
No. It repeals only specified items (4.1.2 and 4.2.1) and the modified guidelines inconsistent with the new provisions; all other consistent terms remain in full force.
After fifteen (15) calendar days following completion of its publication in the Official Gazette or in a newspaper of general circulation.
It supersedes those earlier provisions to the extent of their coverage, replacing the prior rules on capacity-to-pay computation and LTV ratio determination for Pag-IBIG end-user home financing.
Compute 35% of the borrower’s (or for tacked loans, the combined basis limited to up to three borrowers’) gross monthly income and ensure the monthly amortization/repayment does not exceed that amount.
It ensures the loan amount does not exceed a specified percentage of the property’s appraised value, thereby limiting exposure relative to collateral valuation.
For developer-assisted housing loans up to the prevailing maximum limit for socialized housing loan, the LTV ratio shall be 100%, provided the developer’s License to Sell is for a socialized housing project and the loan purpose is for purchase of a residential unit.